Press Release

SAN DIEGO — As San Diego County prepares for a challenging fiscal year driven in part by an estimated $300M+ in costs from federal funding reductions, the Board of Supervisors today approved a reform advanced by the Board’s Sustainable Fiscal Planning Subcommittee to elevate and standardize countywide space management practices across the County’s $59 million annual lease portfolio.

“In a time of federal funding reductions, we are taking a ‘no stone unturned’ approach at home,” said Chair Lawson-Remer. “This reform ensures every long-term lease reflects coordinated planning and the highest fiscal standards.”

The action builds on a proven consolidation effort at the County Operations Center (COC), where approximately 15 departments were consolidated and 800 employees were aligned within existing County-owned facilities. That coordination allowed the County to vacate an entire building and avoid an estimated $150 million in capital costs without reducing services.

“The Sustainable Fiscal Planning Subcommittee was created to take a serious look at our largest cost centers and elevate how we operate,” said Vice Chair Monica Montgomery Steppe. “Today’s action makes coordinated, countywide space planning the standard — protecting services while we navigate federal uncertainty.”

The County currently maintains more than 70 active leases supporting operations and essential public services. Because lease agreements often create multi-year financial obligations, decisions made today can shape taxpayer costs for years. The approved proposal amends Board Policy F-22 to apply a coordinated, enterprise-wide review before new leases are initiated and allows staff to authorize early termination of underutilized leases when landlords agree to mutual termination without penalty.  The reform ensures that those commitments reflect the full County footprint and evolving work patterns, such as telework and hoteling, before new leases are finalized.

Part of a Broader Fiscal Sustainability Effort

Today’s action builds on a deliberate series of structural reforms advanced by the Sustainable Fiscal Planning Subcommittee to strengthen long-term fiscal stability during a period of anticipated federal and state funding reductions. Recent actions include:

• Reforming the County’s reserve policy to align with Government Finance Officers Association (GFOA) best practices, unlocking approximately $95 million per year over four years to stabilize core services while maintaining prudent fiscal safeguards.
• Launching the Partnership to Protect San Diegans, an innovative public-private collaboration projected to generate $13 million in savings over two years, helping sustain critical programs amid external funding uncertainty.
• Advancing communications and IT modernization reforms, projected to generate up to $7 million in ongoing annual savings by retiring legacy systems and aligning technology with how County employees actually work today.
• And now, elevating countywide space management standards to apply coordinated, enterprise-level review across the County’s $59 million annual lease portfolio.

Together, these steps reflect a consistent approach: modernize operations, apply higher standards across major cost centers, and protect essential public services through disciplined financial management.