County supes spar over reserve funds

Supervisors clash over using reserve funds amid projected budget deficits, with proposal to unlock $380 million failing in a split vote.

San Diego County Supervisor Terra Lawson-Remer (pictured) and Supervisor Monica Montgomery Steppe proposed changes to the county’s reserve policy to have better access, address staff wages and retention and more. The item failed on a split vote during Tuesday’s meeting. Steve Puterski image

COUNTY — A contentious debate over San Diego County’s reserve policy ended with the Board of Supervisors killing the new proposal.

Tuesday’s ordinance was brought forward at the last minute by Supervisors Terra Lawson-Remer and Monica Montgomery Steppe, who both said the current policy is outdated, in need of reform, isn’t in line with best practices as the county’s proposed budget had to cover a $138.5 million deficit for Fiscal Year 2025-26. However, the item died on a 2-1-1 vote with Supervisor Jim Desmond voting no and Supervisor Joel Anderson abstaining.

The two women said cuts from the state and federal budgets are contributing to the county’s inability to provide core services, address salaries next year and retain staff. The reserves, they said, are needed to address those cuts, and those from the state, to continue providing services.

Dozens of Service Employees International Union workers attended and spoke urging the supervisors to ditch the current policy to address pressing budget issues and employee wages. Some said county employees are some of the lowest paid among government workers in the state.

Critics and opponents, though, ripped Lawson-Remer and Montgomery Steppe for attempting to raid the county’s reserve funds to offer raises or bonuses to staff and fund non-critical services with one-time money, which would put the county in jeopardy should a disaster or economic downturn occur.

“We have employees working hard every day,” Lawson-Remer added. “We can’t support our community if people (staff) are leaving. The county is only as strong as the people who work here.”

This proposal comes on top of Lawson-Remer’s State of the County address, where she proposed a $1 billion tax measure and increasing the real estate transfer tax to cover the “top 1%” of properties in the county.