County budget approval fails as concerns rise over impending federal cuts.

San Diego County’s Board of Supervisors recently addressed a proposal to delay the approval of the 2025-26 budget, which ultimately did not secure sufficient support. The necessity to devise a comprehensive spending plan by June 30 continues amid looming uncertainties regarding the state budget deficit and anticipated federal funding cuts that could significantly affect county programs.

Supervisor Monica Montgomery-Steppe, the proponent of the proposal, underscored the need to establish an interim budget to gain clearer insights into forthcoming state and federal financial allocations prior to finalizing the budget in the fall. At a recent board meeting, she expressed concerns about the unprecedented financial landscape, indicating that the county faces significant unknowns as it moves toward budget planning.

The proposal, which had originally been slated for a vote on Tuesday but was postponed due to a packed agenda, ultimately failed to gain traction, resulting in a 2-1 vote. With the fiscal year commencing on July 1, the Board typically aims to finalize the budget by June 30. However, state law allows for an interim budget to be approved, provided that a formal budget is ratified by no later than October 2.

This proposal also had the potential to afford the incoming District 1 supervisor—the position recently vacated by former Supervisor Nora Vargas—a vital opportunity to influence budget priorities. Vargas left her role earlier this year, citing concerns related to personal safety and security, and a special election held on Tuesday indicates that Chula Vista Mayor John McCann and Imperial Beach Mayor Paloma Aguirre will vie for the position in a runoff scheduled for July.

Both candidates have expressed their desire to contribute to budget discussions post-election. Aguirre has articulated concerns about moving forward with budgeting decisions without representation for District 1, emphasizing the risk of “shortchanging” the community. McCann, too, signaled interest in participating in budgetary considerations should he be elected, while also emphasizing the crucial challenge posed by the county’s structural deficit, already exceeding 0 million.

Montgomery-Steppe’s proposal called for at least three votes to pass. During the board meeting, she and Supervisor Terra Lawson-Remer voiced support for the delay, while Supervisor Joel Anderson opposed it. Supervisor Jim Desmond was absent, attending other engagements in Washington, D.C.

Anderson has expressed apprehensions that any delay in the budget approval process could jeopardize essential services and potentially damage the county’s credit rating. However, county Chief Financial Officer Joan Bracci clarified that implementing Montgomery-Steppe’s proposal would not affect services and would maintain the county’s credit standing, provided a budget is passed before the October deadline.

In her comments following the vote, Montgomery-Steppe labeled the decision to approve a budget without a comprehensive understanding of the potential impacts of cuts to critical programs—such as food assistance and Medi-Cal—as fiscally irresponsible. These federal assistance programs account for approximately one-third of the county’s overall budget, which has already been grappling with a substantial shortfall.

Montgomery-Steppe emphasized the importance of carefully weighing financial decisions, stating that approving a budget without a clear fiscal overview is not a prudent strategy. She pointed out that several other California counties, including Los Angeles, adopt a two-step budget process, which may effectively address such uncertainties.

As San Diego County leaders navigate these complex fiscal challenges, they face the critical task of balancing immediate budgetary needs with the long-term implications of federal and state funding dynamics. Media News Source will continue to monitor these developments as the county prepares for its upcoming budget deliberations.