On Tuesday, San Diego mayor Todd Gloria released a “draft” city budget for Fiscal Year 2026 that includes $157 million in new revenue, partly composed of increased fees, but also cuts to libraries and recreation centers.
Gloria’s budget encompasses net increases for both the San Diego Police Department and Fire-Rescue Department, allocating $29.3 million for the former and $24 million for the latter.
“We are proud that public safety continues to remain of the highest importance to Mayor Gloria’s administration,” Fire Chief Robert Logan II stated.
Police Chief Scott Wahl commented that the budget “reflects the difficult but necessary choices required to meet this unprecedented moment without compromising the key services our communities rely on.”
The proposed budget totals $6.04 billion, marking an increase of $223.1 million over FY 2025.
Other highlights of the preliminary budget include the closure of all libraries on Sundays and Mondays, as well as a reduction of a library tutoring program from 18 to 10 libraries.
Additionally, the budget proposes a reduction of all recreation center hours from 60 hours per week to 40 hours per week, along with the seasonal closure of select restrooms in city parks.
There is a significant investment in infrastructure, with $36.3 million allocated for slurry/cape/scrub seal maintenance road resurfacing, and $46.8 million designated for full road resurfacing, together covering nearly 390 lane miles of streets.
Furthermore, $48.8 million is earmarked for stormwater upgrades, which includes $39.1 million for emergency projects and $9.7 million in flood resilience infrastructure.
The budget also outlines a renegotiation of the city’s animal services contract aimed at reducing costs.
An anticipated $11 million in new revenue is expected to come from proposed parking fees generated in Balboa Park.
In the realm of homelessness services, the budget allocates a total investment of $105.3 million, with $71.1 million from the General Fund, $25.7 million from the state’s Homeless Housing Assistance and Prevention program, and $8.5 million from other grants.
However, the city will back away from the Rosecrans bridge shelter, largely due to county plans to demolish an adjacent building and cut utilities.
In response to the anticipated restroom closures in city parks, the city said it would fund “non-personnel expenditures” to provide portable restroom facilities in downtown as part of its homelessness and housing program.
County Supervisor Terra Lawson-Remer’s office provided context, stating, “With the original [memorandum of agreement] set to expire in July, county officials had been in talks with the city to develop an updated agreement to extend the shelter’s life by an additional four years.
“Despite the county’s continued interest in partnership, the city has signaled its intention to withdraw from the agreement — ending its role in operating the shelter.”
Lawson-Remer has called on philanthropic donations to construct dedicated utility infrastructure, estimating the costs could reach up to $2 million for new water, sewer, fire main, and electrical hookups, which are needed to allow the shelter to continue receiving county-funded utilities without interruption.
In November’s election, voters rejected the San Diego Transaction and Use Tax, which would have increased the tax on transactions in the city by 1%, thereby raising the total sales tax to 8.75%.
The current rate of 7.75% positions the city among the lowest of the state’s 482 municipalities, lagging behind 9 of the county’s 18 cities, according to the California Department of Tax and Fee Administration.
Supporters of the transactional tax argued that the additional $400 million it would have generated was vital for the city’s financial health.
However, concerns about the cuts necessitated by the failure of the measure were less frequently addressed.
The draft budget includes a “right-sizing” of fees, featuring doubled parking meter rates, increased parking-citation penalties, and hikes in various service fees across the city.
In addition, Gloria is counting on a new fee structure for solid waste collection, which is slated for a decision by the City Council in June, along with an increase in the city’s hotel tax.
This hotel tax, Measure C, was approved by a simple majority in 2020 but required two-thirds for passage.
Despite the two-thirds rule being considered unfair, San Diego intends to implement the tax starting May 1, although the matter remains under judicial review.
Gloria’s draft budget also proposes cutting 393 positions, of which 160 are currently filled, and many of these employees are expected to be transferred to other departments.
The budget outlines $175.9 million in reductions across all city departments.
Councilman Stephen Whitburn responded, “I see Mayor Gloria’s draft as a good-faith attempt to respond to the concerns shared amongst our council colleagues.
“As elected officials, we are relied upon not only to maintain the city’s duty to serve the public but also to concurrently protect the jobs of the hard-working members of the city’s workforce.”
Mayor Gloria is scheduled to present the budget to the San Diego City Council on Monday.
The council, acting as the Budget Review Committee, will conduct a series of hearings from May 5-9.
Following these discussions, Gloria will present his revised and official budget proposal on May 14.
Gloria asserted, “What we are putting forward at this time is a balanced draft budget grounded in our economic reality.
“It will continue to keep our neighborhoods safe, remain focused on reducing homelessness and fixing our infrastructure, and largely protect core city services that our residents count on.”
He further emphasized, “With the economic data we have now, we’ve made strategic decisions to minimize service-level reductions, avoid mass layoffs of the workers who keep our city operating, and invest in what matters most to San Diegans.”
In December, Gloria had announced that San Diego was facing a $258 million budget deficit in the next fiscal year, attributed to declining growth in property, hotel room, and sales taxes.
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