As a season of painful budget negotiations, offset by nationwide economic volatility, failed tax measures, and declining revenue, comes to an end, the final budget proposed by San Diego City Council includes bold restorations to library services and recreation center hours. Now, it heads to the Mayor’s desk, where it is subjected to final approval or a veto.
Thousands of San Diegans spoke out in the budget development process this year, particularly in opposition to deep cuts to services that serve as lifelines to the community.
“These cuts do more than reduce hours, they reduce opportunity, access, and safety, especially for youth and families in underserved communities,” said District 4 resident Samuel Marrow during the June 10 budget hearing at City Hall.
But in the face of a $258 million budget deficit, the mayor’s initial budget included across-the-board cuts to many services of this kind. To help close the gap, the city also introduced new fines and fees for residents, including increased parking and trash rates.
After sustained outcry from the community in the last few weeks, a coalition of councilmembers–including Councilmembers Foster, LaCava, Lee, and Elo-Riviera—unveiled a series of restorations to highly sought-after programs and services.
“By cutting administrative overhead and leveraging new parking and advertising revenue, the proposal restores funding for the parks, libraries, and rec centers our communities rely on,” a statement from Councilmember Foster’s office read.
Key restoration includes:
- $3.1 million Library services: Full Monday operations at 14 branches in underserved communities
- $4.8 million Recreation: Full restoration of recreation center hours
- $1.6 million Public Bathrooms: Restoration of 5 public bathroom facilities
- $6.8 million: Homelessness and Affordable Housing
- $2.5 million Funding for Community programs:
- The Office of Race and Equity
- Arts, culture, and community festivals nonprofit grant
- Small Business Enhancement Program
- Fire Safety, Stormwater, and Capitol Improvement Projects
The proposed budget also calls for the reinstatement of the Chief Operating Officer position, which the mayor eliminated just a few months prior.
Budget Risks Remain
The funding restorations were made possible by a newly approved trash collection fee and recent parking reforms. However, the city’s Independent Budget Analyst has warned that the projected revenue from these changes may be overly optimistic. Raising concerns that overestimating the budget now could result in service cuts later in the year.
“Revenues from parking fees, digital billboards, and credit card transaction fees may or may not be realistic. The city’s budget is already relying on optimistic assumptions,” said IBA analyst Charles Modica during the June 10 meeting.
In statements provided to the media by the mayor’s office, his spokesperson, Rachel Laing, emphasizes the warnings of the IBA.
“The council added tens of millions of dollars in new spending and changes, many of which raised concerns from both the independent budget analyst and the City Attorney’s Office,” Laing said.
The mayor has line-item veto authority, allowing him to cut new spending or make changes.
“Over the next several days, the mayor and his team will closely review the council’s amendments to ensure the final budget meets the level of fiscal responsibility this moment demands, especially given the current economic uncertainty and global instability,” said Laing.
The budget crisis deepened last fall when Measure E—a proposed one-cent sales tax that would have generated $400 million annually and erased the deficit—failed at the ballot box.
District 2 Councilmember Jennifer Campbell, along with District 8 Councilmember Vivian Moreno, voted no on the councilmembers’ proposed budget, with Campbell expressing concern about overspending.
“I cannot pass a budget that cannot be balanced, that is illegal… I am not convinced that entire list of things can be paid for out of this particular budget. And I don’t want us to get into a situation where we are spending much more than we have,” said Councilmember Campbell.
Trash Recovery
Trash revenue is expected to generate $139 million. Without it, up to $80 million in additional cuts would be required councilmembers warned. As a result, the day before the budget adoption, the Council voted 6-3 to approve the trash fee.
“If we do not pass a trash fee, we will blow at least an $80 million hole in the budget,” said Council President Joe LaCava.
Starting July 1, homeowners will be charged $42.76 for three 95-gallon bins. Originally estimated at $23–$29, the higher cost is due to overestimated household counts and rising operating expenses. Councilmembers Foster, Campillo, and Von-Wilpert voted no on the item. Councilmember Campillo called it a “bait and switch” as the rate has substantially changed from what voters originally agreed to.
Public Safety Debate
Meanwhile, the budget has been unpopular since its initial unveiling by Mayor Gloria in March.
A revised budget released by the Mayor in May did little to ease concerns, offering only minimal restorations, primarily to public safety, including $773,529 to keep the Northwestern Police Station open.
San Diego Police Department has consistently taken up the largest portion of the city budget. This year, their proposed budget is at $702.3 million, representing a 4% increase from the previous year.
Tensions between the community and law enforcement have reached explosive levels in recent weeks, spurred by a series of ICE raids across San Diego and much of Southern California. These dynamics have manifested within conversations regarding public safety and budget, with residents drawing on the morality of funding services such as Automated License Plate Readers used to surveil residents over neighborhood services.
Many community members demand that funding be revoked and instead invested in local communities.
“Spending money on criminalization does not make us safer, it instills fear and tears communities apart. Are you willing to fund systems that hurt people while cutting the youth programs and services that uplift them?” said Noah Yee Yick, a policy advocate at the Center on Policy Initiatives.
What’s Next
While councilmembers have described the revised budget as a step forward, inequities and systemic issues still persist. Moving forward, several funding decisions now hinge on whether the Mayor accepts the proposal—or exercises his power to veto key elements.
