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Fend for yourself: Under Trump, San Bernardino County budget process starts Consumer Protection Bureau’s probes with concerns over economic uncertainty of big tech and finance firms freeze up By Joe Taglieri
By Jake Pearson, ProPublica
joet@beaconmedianews.com
T
he Board of Supervisors began the 2025–26 budget process Tuesday with a public hearing and financial update from the San Bernardino County CEO and chief financial office The presentation led by CEO Luther Snoke and CFO Matthew Erickson emphasized four categories that have drawn officials’ focus: using data to guide decisions, addressing workforce recruitment and retention, maintaining stability amid economic uncertainty and seeking responsible opportunities for growth, according to a county statement. With about 16% of county positions vacant, Snoke noted the opportunity to attract skilled workers from the public sector. Erickson outlined the current economic landscape that will shape the county’s budget for the fiscal year that starts July 1. He noted a shift from previous years’ inflation-driven concerns to the emerging risks surrounding tariffs and the possibility of “stagflation,” which refers to periods of combined high inflation, stagnant economic growth and high unemployment. Los Angeles-based Beacon Economics, which assists San Bernardino County officials with economic forecasting, projected continued economic stability in 2025-26, according to a
This story was originally published by ProPublica. ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for The Big Story newsletter to receive stories like this one in your inbox.
S San Bernardino County Chief Financial Officer Matthew Erickson briefs the Board of Supervisors and the public on the upcoming fiscal year’s budget. | Photo courtesy of San Bernardino County
presentation delivered to the board on Tuesday. But changes in the nation’s trade policy could influence the Inland Empire’s position as a logistics and warehousing hub, a key economic sector for the region, officials cautioned. Recent declines in local Proposition 172 sales tax revenues that help fund public safety budgets, a hiring slowdown in the warehouse/logistics sector and reduced home sales driven by higher mortgage rates are also signs of a “post-pandemic normalization that could moderate future revenue growth for the county.” The county’s 2024-25 budget totaled $10.2 billion. According to Snoke and Erickson’s presentation,
$6.07 billion, or nearly 60% of the budget is from “other sources” that include investments and other unspecified revenue streams. Nearly 29%, or $2.91 billion comes from federal, state and other government sources, with the federal government’s share of that at about $1 billion, Erickson said. The county general fund’s $1.18 billion provided 11.6% of the total budget. “Despite uncertainty ... Beacon Economics is confident that the economy will stay on track in the near term and does not foresee a recession,” the firm observed in January. “The outlook for San Bernardino County could change if ... tariffs (are imposed) on key
trading partners, triggering a trade war.” Looming potential threats aside, Erickson said the county remains in a strong fiscal position with more than $74 million in ongoing reserves. Ericson pointed to the county’s conservative 3% property tax growth model and the more than $200 million in general funds for employee compensation and to retirement obligations through 2030. Supervisors have also allocated roughly $9.3 million to prepare for potential impacts to the jail system stemming from the passage of Proposition 36, which stiffens penalties for property crimes and could
See San Bernardino budget Page 28
ince the Trump administration moved to dismantle the Consumer Financial Protection Bureau last month, the bureau has dropped nine lawsuits that it had brought on behalf of consumers. The actions effectively freed major financial firms like Capital One and the mortgage giant Rocket Homes from the threat of consequences for their alleged significant wrongdoing, shocking consumer advocates and raising questions about the future of America’s consumer watchdog. For their part, when the cases were dropped, the companies lauded the decisions, with a bank spokesperson welcoming the dismissal of the case, “which we strongly disputed,” and Rocket Homes calling the suit an “empty claim.” But the administration’s new hands-off approach to enforcement at the CFPB extends far beyond those public lawsuits. Behind the scenes, dozens of ongoing investigations into alleged corporate malfeasance are now frozen at the agency, potentially denying accountability and financial relief for untold numbers of consumers, a ProPublica investigation has found. Under a stop-work order issued by the agency’s new leaders, CFPB investigators have been unable to press forward on probes into companies whose products and services are used by tens of millions of Americans, including Carvana, the online used-car retailer; Mr. Cooper, one of the country’s largest mortgage servicers; and CareCredit, a leader in medical credit cards, according to multiple people with knowledge of the matters. The ongoing inquiries, the existence of which ProPublica is revealing for the first time, were at various stages of development, with subpoenas issued in most of them and companies submitting records in response. And while the nature of the alleged wrongdoing wasn’t clear in all cases, people familiar with the inquiries said several probes tracked closely with problems featured in the agency’s own recent public reports. Last fall, for example, the CFPB examined automobile finance companies and found numerous problems with industry practices, including failing “to timely provide See Consumer Protection Bureau Page 04
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