Overview

• Chair Terra Lawson-Remer and Vice Chair Monica Montgomery Steppe advanced the policy, joined by Supervisor Paloma Aguirre, with Joel Anderson and Jim Desmond opposed.
• The change recalculates the reserve target to two months of operating expenses, lowering it from $973 million to $945 million, and recognizes all locally controlled reserves rather than only unassigned funds.
• Officials say the adjustments could free about $380 million in flexible reserves over four fiscal years, with no more than 25% accessible in any single year.
• Any draw on the funds would follow a presentation by the chief administrative officer and require approval from at least four supervisors, and access is limited to difficult economic conditions.
• Backers cite projected local impacts from the Trump administration’s One Big Beautiful Bill Act—including more than $300 million a year in costs or lost revenue and risks to health and food assistance—while critics warn the move weakens fiscal safeguards.