{"id":3390,"date":"2026-06-21T06:01:40","date_gmt":"2026-06-21T13:01:40","guid":{"rendered":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/21\/san-diego-county-finances-teetering-toward-structural-deficit-watchdog-study-finds\/"},"modified":"2026-06-21T06:01:40","modified_gmt":"2026-06-21T13:01:40","slug":"san-diego-county-finances-teetering-toward-structural-deficit-watchdog-study-finds","status":"publish","type":"post","link":"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/21\/san-diego-county-finances-teetering-toward-structural-deficit-watchdog-study-finds\/","title":{"rendered":"San Diego County finances teetering toward structural deficit, watchdog study finds"},"content":{"rendered":"
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Days before the San Diego County Board of Supervisors is scheduled to adopt its multibillion-dollar budget for the year that begins July 1, a government watchdog group is ringing alarm bells over the fiscal health of the nation\u2019s fifth-largest county.<\/p>\n

Read more Inside the revolving door: At San Diego County, staff turn to lobbying for private clients amid lax rules and limited bans<\/a><\/p>\n

Most concerning, according to an analysis by the San Diego County Taxpayers Association, is a 2026-27 spending plan that is balanced on paper but drifting steadily toward a structural deficit like the one that haunts the city of San Diego.<\/p>\n

The driving force behind the worsening budget scenario is a 28% increase in the number of employees over the past decade and a half.<\/p>\n

The also pointed to escalating public health and social services costs, declining investments in capital improvements and an outsized reliance on state and federal tax dollars as drivers of the county\u2019s diminishing financial health.<\/p>\n

\u201cThe county spends more every year to grow its workforce while the infrastructure that supports operations is allowed to crumble,\u201d said Mark Kersey, president and chief executive officer of the San Diego County Taxpayers Association.<\/p>\n

\u201cMore than half of the general fund comes from Sacramento and Washington \u2013 dollars the county cannot control \u2013 yet it has not prepared for cuts already scheduled,\u201d he said.<\/p>\n

A spokesperson for San Diego County said the proposed budget reflects thorough, year-round planning and careful consideration of community priorities and input.<\/p>\n

\u201cThis ensures long-term fiscal stability while managing a consistently changing environment and meeting the needs of the community,\u201d spokesperson Tammy Glenn said by email. \u201cThe analysis of San Diego County\u2019s Taxpayers Association is lacking additional context and details that would provide an accurate representation of the county\u2019s fiscal health and stability.\u201d<\/p>\n

\n<\/div>\n

Glenn also noted that San Diego County enjoys Triple A credit ratings from all three major rating agencies.<\/p>\n

The county Board of Supervisors on Thursday is scheduled to consider adoption of the proposed $9.2 billion budget for the 2026-27 fiscal year that starts July 1. Two Republican supervisors worry that the spending plan relies on reserves; the Democratic majority said the budget is fundamentally sound.<\/p>\n

Now more than 80 years old, the San Diego County Taxpayers Association is a nonprofit, non-partisan government watchdog organization. It regularly produces research and policy analysis in order to promote efficiency and effectiveness among elected officials.<\/p>\n

The taxpayers\u2019 review of county financial practices follows a similar \u2013 and more scathing \u2013 analysis of San Diego city spending the organization released in April.<\/p>\n

\n<\/div>\n

Like the evaluation of city finances, the latest study noted that the public payroll increased at a rate that was notably higher than the population within its jurisdiction. For San Diego County, the growth in its workforce was nearly four times the rate of residential growth.<\/p>\n

San Diego County now employs 6.15 people per 1,000 residents, up from 5.07 full-time workers per 1,000 residents in 2011, the study said. In inflation-adjusted dollars, personnel costs have climbed by 53%, to $3.5 billion, it added.<\/p>\n

Labor now accounts for almost 41% of county spending \u2013 up from the 32.5% it accounted for in 2011, the report said.<\/p>\n

The growth in payroll was due in part to rising costs for food stamps, health care and other state and federal programs \u2013 all efforts that are vulnerable to legislation such as the \u201cOne Big Beautiful Bill Act\u201d passed by Republicans in 2025 that slashed Medicaid and Medi-Cal payments, the study said.<\/p>\n

Read more Michael Smolens: Top San Diego GOP goals drift farther away as vote count continues<\/a><\/p>\n

\u201cThe county is obligated to deliver service levels that follow caseload and eligibility rules set in Sacramento and Washington,\u201d it said. \u201cBut the county retains meaningful discretion over how it administers those programs, and also controls fiscal levers that are entirely local.\u201d<\/p>\n

The consequences of the county\u2019s fiscal practices are most visible in the region\u2019s declining investments in infrastructure, the taxpayers\u2019 association report said.<\/p>\n

\u201cThe county\u2019s capital-improvement program has collapsed to $45.8 million in Fiscal Year 2026 \u2013 the lowest in the 16-year data set and only 0.5% of the budget,\u201d the report said.<\/p>\n

\u201cThe county has published no facilities condition assessment for its 7.6 million square feet of buildings, even as the deferred Vista Detention Facility replacement alone nears a projected $1 billion.\u201d<\/p>\n

In 2011, San Diego County dedicated some $289 million to capital projects, the taxpayers\u2019 study noted, 4.1% of overall spending. The sharp decline in spending on long-term projects shows that elected officials are willing to put off difficult spending decisions, the authors said.<\/p>\n

\u201cThe volatility itself is a finding,\u201d researchers said. \u201cIt indicates that the county treats capital investment as discretionary rather than a planned, lifecycle-based obligation.\u201d<\/p>\n

While county officials have yet to create a structural budget deficit \u2013 where annual obligations regularly exceed revenues and services fluctuate widely from year to year \u2013 expected changes in demographics may worsen current conditions, the study said.<\/p>\n

The taxpayers\u2019 group said the number of people aged 65 and older is expected to grow by 244,000 over the next two decades-plus, driving up demand for the most expensive services while the working-age tax base shrinks.<\/p>\n

\u201cEvery one of these pressures \u2013 the federal cost-shifts, the aging population, the maintenance backlog \u2013 is knowable and already on the calendar,\u201d said Mike McLaughlin, the San Diego County Taxpayers Association chairman.<\/p>\n

\u201cThe county\u2019s job is to build a budget that can absorb them,\u201d McLaughlin said. \u201cInstead, the data shows it drawing down reserves and leaning on one-time money in the very year it was warned about the cliff.\u201d<\/p>\n

The study also criticized San Diego County for providing limited insight into the specific outcomes of many local programs.<\/p>\n

For example, researchers said, a 2024 assessment by the accounting giant Deloitte singled out the county\u2019s escalating spending on efforts to prevent homelessness.<\/p>\n

In all, that review found that the county operates 46 homelessness programs funded by 28 different sources. It also identified critical gaps in case-management tools and inconsistencies in its data collection across various programs.<\/p>\n

Even though \u201crent-voucher programs showed better-than-national-average success rates at keeping people housed, the fragmentation of funding and programming makes it difficult for the county \u2013 or taxpayers \u2013 to evaluate cost-effectiveness or track year over year progress against measurable goals,\u201d the study said.<\/p>\n

Read more James Burrows, director of classic TV comedies including \u2018Cheers\u2019 and \u2018Friends,\u2019 dies at 85<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Days before the San Diego County Board of Supervisors is scheduled to adopt its multibillion-dollar budget for the year that begins July 1, a government watchdog group is ringing alarm bells over the fiscal health of the nation\u2019s fifth-largest county. Most concerning, according to an analysis by the San Diego County Taxpayers Association, is a 2026-27 spending plan that is balanced on paper but drifting steadily toward a structural deficit like the one that haunts the city of San Diego. The driving force behind the worsening budget scenario is a 28% increase in the number of employees over the past [\u2026]<\/p>\n","protected":false},"author":1,"featured_media":3389,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-3390","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics"],"yoast_head":"\nSan Diego County finances teetering toward structural deficit, watchdog study finds - Los Angeles Moving Insider<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/losangelesmovinginsider.com\/index.php\/2026\/06\/21\/san-diego-county-finances-teetering-toward-structural-deficit-watchdog-study-finds\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"San Diego County finances teetering toward structural deficit, watchdog study finds - Los Angeles Moving Insider\" \/>\n<meta property=\"og:description\" content=\"Days before the San Diego County Board of Supervisors is scheduled to adopt its multibillion-dollar budget for the year that begins July 1, a government watchdog group is ringing alarm bells over the fiscal health of the nation\u2019s fifth-largest county. 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