San Diego City Budget Review Committee Meeting - May 5, 2020

The Budget Review Committee convened on May 5, 2020, to review the proposed FY2021 budgets for multiple city departments, including libraries, parks and recreation, homelessness strategies, cultural affairs, information technology, human resources, performance and analytics, sustainability, economic development, and development services. The meeting featured extensive public testimony and councilmember discussion, focusing on the severe impacts of proposed cuts due to the COVID-19 pandemic. The committee voted to continue several items to a later date.

Public Comments & Testimony

• Libraries: Over 28 speakers urged the council to oppose further cuts, highlighting the library's role as a lifeline for low-income communities, students, and seniors. Speakers emphasized the importance of maintaining hours, preventing branch closures (especially Mountain View Beckworth), and preserving staff. Specific concerns included the digital divide, job-seeking resources, and the need for safe spaces.
• Parks and Recreation: 16 speakers expressed concerns about reduced recreation center hours (from 60 to 45 per week) and 14-week pool closures. Speakers included seniors reliant on water aerobics, youth program advocates, and community organizations, stressing the importance of parks for physical and mental health, especially in underserved areas.
• Homelessness Strategies: One speaker supported the creation of a new department but urged the city to use low-moderate income housing funds for homeless services rather than general fund money.
• Cultural Affairs: 17 speakers, including representatives from the San Diego Rep, La Jolla Playhouse, and the Old Globe, opposed the 50% cut to arts grants, noting the $1.1 billion economic impact and 36,000 jobs supported by the arts. They urged maintaining current funding levels.
• Sustainability (Smart Streetlights): 6 speakers opposed funding for the Smart Streetlight program, citing unfulfilled promises, privacy concerns, and the program's failure to deliver energy savings. They advocated redirecting funds to libraries, parks, and other core services.
• Economic Development: Two speakers requested more equitable distribution of small business relief funds, particularly for Promise Zone communities and home-based businesses.
• Development Services: One speaker raised concerns about the Verizon partnership and its impact on permit review staffing.

Discussion Items

• Deputy Chief Operating Officer Overview: Robert Vocke presented the Neighborhood Services branch, which includes libraries, parks, homelessness, and cultural affairs. The branch faces significant reductions: 97 positions in libraries, 86 in parks, and 9 positions transferred to the new Homelessness Strategies department. COVID-19 impacts are ongoing, and additional cuts are expected in the May revise.
• Library Department: Director Misty Jones presented a $6.8 million reduction, including 96.51 FTE cuts, closure of the Mountain View Beckworth branch, and reduced hours (closed Sundays and Mondays). The IBA noted 72.01 filled positions among the cuts. Councilmembers expressed strong support for libraries, with many vowing to restore funding. Councilmember Campbell called libraries a priority; Councilmember Montgomery highlighted the impact on underserved communities.
• Parks and Recreation Department: Director Andy Field presented a $4.9 million reduction (86.05 FTEs), including reduced rec center hours (45/week), 14-week pool closures, and elimination of swim team/water polo in winter. The IBA noted 23 vacant positions among the cuts. Councilmembers voiced concerns about brush management cuts and the impact on youth programs. Councilmember Moreno opposed cuts while funding new departments.
• Homelessness Strategies Department: Chief Keely Halsey presented a budget-neutral restructuring to create a new department, consolidating existing positions. The budget includes $5.7 million for the Veterans Village bridge shelter relocation. Councilmembers questioned the timing of creating new departments and the cost of relocation. Councilmember Campbell opposed new departments during a budget crisis.
• Cultural Affairs Department: Director Jonathan Gloss presented a budget-neutral merger of arts and culture with special events. The 50% cut to arts grants (from $11.4M to $5.7M) was a major concern. Councilmembers, including Council President Gomez, questioned the merger and cuts, but acknowledged the need to prioritize core services.
• Information Technology Department: CIO Jonathan Banke presented a $10.7 million increase in non-general fund costs for IT contract transitions. Reductions include suspending PC replacements and delaying public safety radio upgrades. Councilmembers thanked IT for supporting remote work and asked about CARES Act reimbursement.
• Human Resources Department: Director Julie Rasco presented a $113,000 reduction, eliminating three positions, including a child care coordinator. Councilmembers expressed disappointment but understood the need for cuts.
• Performance and Analytics Department: Director Kirby Brady presented a $150,000 reduction to Get It Done and $65,000 to open data tools. Councilmembers praised the department's work and sought to restore some funding.
• Sustainability Department: Director Cody Hooven presented a $1.3 million increase for the Smart Streetlight program, offset by cuts to climate action plan updates. Councilmembers strongly opposed the Smart Streetlight funding, citing cost overruns and privacy issues. Councilmember Montgomery, Moreno, and Gomez indicated they would not support the program.
• Economic Development Department: Director Christina Bibler presented $1.1 million in program reductions, including the Small Business Enhancement Program and Storefront Improvement Program. The $2 million small business relief fund was noted. Councilmembers asked about using CARES Act funds to restore programs.
• Development Services Department: Director Elise Lowe presented a reduction of 16 code enforcement positions, but proposed using civil penalties fund to restore them. Councilmembers supported the funding solution and praised the department's digital transformation.

Key Outcomes

• Continued Items: The committee voted 7-0 to continue items 13, 15, and 12 (Real Estate Assets, Planning, and Mobility) to Thursday, May 7, 2020, due to time constraints.
• Recreation Center Hours: The committee discussed the need for equity in service reductions, with Councilmember Ward asking for data on branch-level usage to tailor hours.
• Library Branch Closure: Councilmembers Montgomery, Kate, and Gomez explicitly stated they would not support any budget that closes a library branch.
• Smart Streetlights: Multiple councilmembers (Montgomery, Moreno, Gomez) indicated they would not support the $1.3 million general fund allocation for Smart Streetlights, calling for reallocation to core services.
• Code Enforcement Restoration: Director Lowe announced a plan to use $4 million from the civil penalties fund to restore all 16 code enforcement positions for two years, pending May revise approval.
• Business Cooperation Program: The committee noted the elimination of the program would break commitments with three businesses, but some councilmembers expressed hope for future reinstatement.
• Arts Funding: The committee acknowledged the severe impact of the 50% cut but did not reach a consensus on restoration. Council President Gomez expressed support for maintaining arts funding.
• Homelessness Department: The creation of the new department was debated, but no final decision was made; it will be part of the budget approval process.
• May Revise: The committee noted that the Mayor's May revise (due May 19) may include additional adjustments, including potential use of CARES Act funds for eligible programs.