CPI study finds unusually high unspent balance of $2.2 billion

Compared to the 11 other largest counties in California, San Diego County has amassed excessive reserves while scrimping on the safety net services it is obligated to provide.

A new CPI study reveals that the county ended fiscal year 2010 with an accumulated $2.2 billion in unspent reserves.
Even as the recession increased demand for social services, the County Board of Supervisors’ fiscal policies have squeezed its budget on both ends.  Overall, the county raises almost 25 percent less in revenue than other counties, and yet ends the year with a much larger unspent balance.  The end-of-year fund balances total almost 60% of expenditures, compared to an average of 42% among other major California counties, the study found.
The county’s excessive reserves “represent an explicit determination to forgo providing additional public services in the region where these are already in short supply,” study author Vladimir Kogan writes in a commentary published today.
The report, San Diego County Revenues and Reserves, is available on the CPI website, and will be mailed to CPI members.
Other studies have documented that San Diego County trails in providing services that are county responsibilities, ranging from Medi-Cal and food stamp enrollment to fire protection in unincorporated areas. Besides helping residents and businesses, additional spending on local services also would help create jobs and boost the local economy.
The county’s budget policies demonstrate a lack of commitment to funding vital services it is obligated to provide. Sound fiscal stewardship must include wise spending on the essentials, not just putting money in the bank.