Why this matters:
The county hasn’t figured out a plan to maintain social service programs that San Diegans rely on without draining county reserves.
Federal spending cuts are starting to hit San Diego County starting with programs designed to foster a healthy lifestyle.
The county canceled contracts related to CalFresh Healthy Living on September 30, which supported nutrition and healthy lifestyle programs such as community gardens, nutrition education in schools, homeless shelters and exercise groups for seniors. The cuts removed more than $5 million annually from the county budget. The state gave about $1 million to continue programs through April at a “reduced capacity” while they are wound down or transitioned.
That’s just the beginning. The One Big Beautiful Bill Act (H.R.1) could cost the county $300 million and require more than 1,000 extra staff to administer benefit programs as different provisions kick in over time.
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The new projections come from a county report that was shared with county supervisors Tuesday and reviewed by inewsource. Just how much of the costs the county will have to pay itself depends on what the state decides to cover. The report was prepared after the San Diego County Board of Supervisors directed staff to study the effect and possible impact of federal cuts back in June after the Republican spending law was passed.
H.R.1 cut funding for social safety net programs that provide food and health care to people with low income and shifted the costs of the programs to states. California is one of a handful of states where the county administers the program, leaving San Diego County on the hook to fill the gaping hole in its budget.
The memo floats possible solutions, including new taxes or other revenue measures, going to the state for more funding and pulling from county reserves. The amount of usable reserves is just under $400 million, not enough to fill the worst-case-scenario budget hole for very long.
The report notes that the recent vote to allow the county to pull from its reserves put the county in “a strong fiscal position to weather negative economic trends and unforeseen circumstances.” The measure required the county to use the funds exclusively for one-time purposes and pulling from the reserves requires a vote. The report warns that if long term funding doesn’t materialize, the use of reserve funds could create “future structural budget imbalances.”
The county previously split the cost of administering CalFresh and MediCal with the state. Under the new legislation, the county’s annual share will be almost $16 million if the state splits the additional costs. If it doesn’t, the county’s cost would be up to $53 million.
More than 400,000 people in San Diego County will be subject to new work requirements for CalFresh and MediCal, according to county estimates. In order to enforce those new rules, the county will need 426 staff for CalFresh and 727 for MediCal, the memo said.
Supervisors have taken other action to respond to the cuts. They set up a new subcommittee to preserve social safety net services and respond to federal cuts as well as an information campaign to alert San Diegans to the changes.
The state of California has passed $255 million to help respond to the federal spending cuts, but the sums being invested are still small compared to the potential deficit.
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News: Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.
