Budget cuts are coming to San Diego for nearly every department except police and fire as the city grapples with a $118 million deficit, according to Mayor Todd Gloria's draft budget released Wednesday.
Some of those cuts will affect the city's workforce, library and recreation center hours and services.
"This is a balanced, responsible budget that confronts a $118 million deficit directly," Gloria said. "It makes the tough decisions now — including targeted reductions to staffing and support functions — to protect the services San Diegans rely on and keep the city on solid footing."
The $6.4 billion proposed budget for Fiscal Year 2026/27 will be discussed, debated and amended until June 9, the city's deadline for adopting a final budget. Gloria said the nearly $120 million hole in the city's finances was built over decades of deferred maintenance, rising costs and changing priorities both in Washington and Sacramento.
"San Diegans have sent a clear message: Raising revenues to fill the gap is not an option," City Council President Joe LaCava said. "We must deliver a balanced budget with the limited resources we have and put our city on firmer financial footing."
Last year's adopted budget solved around 85% of the city's long-term structural deficit. Gloria said his proposal on Wednesday takes care of the rest.
Some of the cuts the mayor proposes are:
— Reducing the city workforce;
— Reducing library and recreation center hours, including temporary closures associated with planned renovations;
— Scaling back certain capital and programmatic investments — including bike lane expansion — while continuing critical safety improvements at high-risk intersections;
— Pausing arts and cultural grants; and
— A partial hiring freeze.
Gloria said public safety, fire-rescue and police operations, homelessness services and key infrastructure have been prioritized.
"SDPD is operating more efficiently with taxpayer dollars than ever before, as shown by our efforts to decrease overtime spending throughout this fiscal year," Police Chief Scott Wahl said. "As the city approaches another difficult budget year, the department approached the discussion by taking a thoughtful look at how we can consolidate resources without sacrificing service levels."
"This year's budget requires difficult but necessary decisions," San Diego Fire-Rescue Chief Robert Logan II said. "We remain committed to working closely with the mayor's administration and our labor partners to ensure the final budget supports the resources needed to continue delivering critical services to the communities we are honored to serve and the personnel who make that service possible."
Gloria said the budget was another attempt to fix structural funding problems, and not use one-time fixes or rely on federal funds.
"State and federal funding for infrastructure, housing, and homelessness is not guaranteed. The world's broader economic conditions remain chaotic and unpredictable," Gloria said. "If these factors continue or worsen, additional reductions may be necessary. That is the reality we find ourselves in and it is the one we are preparing for with this proposal."
Some of the city's municipal employee union leaders backed the proposal, even while acknowledging the impact it would have if passed.
"While there are painful personnel cuts in this proposed budget, it is a responsible budget that makes meaningful progress toward closing the city's structural deficit, which is in everyone's interest," said Mike Zucchet, general manager of the Municipal Employees Association. "This budget reflects that and shares the pain across many important priorities. What matters now is that the city follows through on its commitment to rightsize the city's budget and keeps the conversation going as this process moves forward."
Bob Lehman, executive director of San Diego Art Matters, said the cuts are short-sighted.
“It's kind of like taking, you know, quitting your job to save gas money. We bring in dollars. You can't, if you stop funding us, that amount of flow of dollars is gonna decrease again.”
Brigette Browning, president of the San Diego & Imperial Counties Labor Council, said the appreciated the mayor's work, but knew the job wasn't done yet.
"A city that cannot manage its finances responsibly cannot deliver for workers or residents," Browning said. "We'll continue to hold the mayor and council accountable as this budget moves through the working process — but tackling the deficit responsibly, while ensuring the stability and security our workers depend on, is the best approach to deliver the services working families rely on."
Last week, a self-commissioned report by the San Diego County Taxpayers Association claimed the city had a middle-management problem.
The nonprofit's analysis found San Diego has grown its municipal workforce at an average annual rate of 2.2% since 2011 — nearly four times faster than its population growth rate of less than 0.5%. During this 15-year period, middle-management positions have grown from 70 to 393 — a 461% increase 23 times greater than the growth of front line workers.
"The city of San Diego is spending more every year to grow its bureaucracy while its roads, pipes and facilities fall apart underneath it," said Mark Kersey, president and CEO of the Taxpayers Association. "Taxpayers are paying a higher cost per person for city services today than they did 15 years ago, and the data shows they are getting less for it. That is not a sustainable model, it is a countdown to failure."
Gloria's office said the claims were overblown. On Wednesday the mayor said his proposed budget was balanced and the right move for San Diego.
"It is based on real numbers and sound projections," Gloria said. "We will work through this process with the City Council as full partners, and by June 9, we will adopt a budget that is balanced, responsible, and on time."
Gloria will next present the draft budget to the City Council in a public hearing on April 20. The council, serving as the Budget Review Committee, will hold a series of hearings from May 4-8. Based on updated economic data, the mayor will release a revised, final budget proposal on May 13.
The full proposal can be found at sandiego.gov/finance/draft.
