City officials in San Diego discuss the approved budget during a council meeting.
The San Diego City Council has approved a $6.09 billion budget amidst budget deficit concerns, restoring key city services previously proposed for cuts. The budget aims to address a projected deficit of $350 million while ensuring public access to libraries, recreation centers, and reservoirs. New revenue streams have been introduced, including parking fees at Balboa Park and San Diego Zoo. Despite two council members voting against it, the decision reflects extensive public testimony for maintaining essential community services.
The San Diego City Council has approved the fiscal year 2026 budget in a decisive 7-2 vote. The new budget, which amounts to $6.09 billion, reflects an increase of $48.4 million in expenditures from previous drafts and aims to restore crucial city services amidst rising budget deficit concerns.
The city has been grappling with significant financial challenges, initially projecting a budget deficit of $258 million, which has since escalated to an estimated $350 million. Faced with these challenges, the approved budget has managed to reinstate several key services that were proposed to be cut in Mayor Todd Gloria’s initial budget, which included substantial reductions to libraries, recreation centers, and community programs.
Among the key restorations, the budget reinstates operating hours at 16 library branches, which will now be open on Mondays, and maintains all recreation center hours. However, library closures on Sundays will remain in effect. Additionally, services at city reservoirs, including Lake Murray and Lake Miramar, are now restored, ensuring continued public access to these natural resources. Furthermore, public restrooms at popular locations such as Mission Bay, Fiesta Island, and Shoreline Beach will remain operational.
The budget also allocates funding for the Office of Race and Equity and reinstates $450,000 for nonprofits focused on arts, culture, and community festivals. Efforts to amend the budget to save cut programs were led by several council members who recognized the importance of maintaining these community services in light of public outcry.
To address the budget deficit, the city has introduced new revenue streams, which include plans for charging for parking at Balboa Park and the San Diego Zoo, projected to generate approximately $10 million. Additionally, reductions in administrative positions have been implemented as part of the budget strategy. However, the city’s independent budget analyst, Charles Modica, has voiced concerns regarding the optimistic projections of these new revenue streams, highlighting the inherent risks associated with depending on unpredictable funding sources.
Despite the majority approval, two council members—Jennifer Campbell and Vivian Moreno—voted against the budget, raising concerns about the city’s capacity to manage all proposed expenditures, especially given the growing deficit. The mayor is now required to sign the budget into law within five days or exercise his line-item veto power. If a veto occurs, the City Council can override it with a supermajority of six votes.
The decision to approve the budget was influenced heavily by extensive public testimony and a strong demand for maintaining community services in San Diego. Critics have pointed to insufficient funding allocations for policing and have called for more transparency in the budgeting process to ensure community needs are adequately met. Moreover, the budget also introduces a new monthly trash fee, anticipated to generate around $80 million annually, contributing further to city revenue.
As the city prepares for the fiscal year starting July 1, officials have reaffirmed their commitment to balanced budgeting, which is mandated by law, while navigating the challenges posed by a rising deficit and community needs for essential services.
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