Mayor Todd Gloria's proposed budget was receiving backlash today from various groups, with the mayor proposing major cuts to services and programs in an effort to plug a $118 million structural deficit.
The draft released Wednesday budget actually bolsters police and fire department funding — while consolidating various services in those two departments — while slashing arts grants, workforce and 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.
One of the cuts appears to eliminate funding for the Neil Good Day Center operated by Father Joe's Villages.
"We recognize the city's continued commitment to addressing San Diego's homelessness crisis in this year's proposed budget," said Deacon Jim Vargas, president and CEO at Father Joe's Villages. "However, the elimination of funding for the day center raises serious concerns, particularly given its minimal cost relative to its impact. We've been aware of ongoing opposition to the day center, but the city has historically prioritized long-term solutions that address homelessness at its root.
"Moving away from that approach now risks setting back that progress and creating new challenges for our community. Each year, the day center serves nearly 7,000 individuals, often as their first point of connection to services. It provides basic necessities like hygiene, clothing, and medical support, while also helping people access housing resources and employment assistance."
After widely unpopular efforts to raise revenues instead of cutting city services — such as paid Balboa Park parking, special event parking rates increasing Downtown and the trash fee — Gloria's proposed budget appears to focus on paring down rather than expanding revenue sources.
"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.
The draft proposal slashes the city's arts spending by nearly $12 million, from $13.8 million to just $2 million. Groups such as San Diego Pride, the Timken Museum, The Old Globe and others rely heavily on city backing.
Claire Johnson, CEO of San Diego Magazine, wrote in an op-ed Thursday that cutting arts funding "is one of the most expensive mistakes a city can make," citing the city's nonprofit arts and culture sector creating $1.2 billion in economic activity, along with 16,900 jobs and $275.7 million in tax revenue.
Even among "safe" departments, consolidation is an unpopular prospect. The San Diego Fire-Rescue Department is looking at a $27 million increase but also cuts to bomb squad staffing and various officers within SDFD.
"Cuts of any kind to our Fire-Rescue Department are public safety cuts," said San Diego City Firefighters President George Duardo. "Make no mistake: when firefighters are already operating at the brink, there is zero margin. Each and every cut will have operational impacts. The city of San Diego cannot balance its budget on the backs of the people we call on the worst days of our lives."
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."
Other 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; and
— a partial hiring freeze.
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.
The mayor 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."
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 Monday. 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.
