San Diego Budget Review Committee Meeting: May 6, 2024 - Homelessness, Housing, Emergency Services, CIP

This meeting was part of the continuous budget review committee session held from May 1-7, 2024. The committee reviewed proposed FY2025 budgets for multiple departments: Homelessness Strategies and Solutions (HSSD), the San Diego Housing Commission (SDHC), the Office of Emergency Services (OES), and Engineering and Capital Projects (ECP), along with the Capital Improvement Program (CIP) update. Public testimony focused heavily on proposed cuts to the Neil Good Day Center and SDHC homelessness programs. Council members expressed concern about funding gaps, the need for prevention, and the moral imperative to provide shelter. Several programs were indicated for potential restoration in the May Revise.

Public Comments & Testimony

• Over 50 speakers testified on Subitem K (HSSD), most advocating against cuts to the Neil Good Day Center. Speakers from Father Joe's Villages, PATH, and Lived Experience Advisors detailed essential services: showers, laundry, mail, case management, harm reduction, and respite. Many argued that cutting these services would increase encampments and public health risks.
• On Subitem L (SDHC), speakers urged full funding for homelessness prevention programs, including the Housing Instability Prevention Program (HIP) and eviction prevention. Several praised SDHC's transparency and effectiveness, especially during the January flood response.
• On Subitem N (CIP), speakers from San Carlos requested immediate funding for the long-delayed San Carlos Library.

Discussion Items

Homelessness Strategies and Solutions (HSSD) - Subitem K

• Director Sarah Jarman presented a $100 million total budget ($55.5M general fund), including $15 million offset from the San Diego Housing Commission. New spending includes $4.3M for safe parking at H Barracks, $2.8M for Kettner & Vine shelter operations, $3.7M for downtown portable restrooms, and $1M for shelter staff cost-of-living increases.
• IBA Analyst Amy Lee noted that without new ongoing revenue, these new programs could create an unsteady fiscal path, with an estimated $26.5M (60%) increase over FY2024. She presented four options: (1) approve as proposed, risking housing commission cuts; (2) delay new spending; (3) pursue permanent shelter consolidation; (4) fund only safe parking and family shelter expansions.
• Council raised concerns: Councilmember Moreno questioned why KPIs measure activity not outcomes (e.g., persons served vs. reduction in homelessness). Councilmember Whitburn argued for adding shelter beds immediately, citing a state audit showing only 21% of referrals to shelter succeed, and 624 homeless deaths in 2023. Councilmember Lee highlighted the need for prevention and criticized the lack of collaboration with the housing commission.

San Diego Housing Commission - Subitem L

• President Lisa Jones presented a proposed $715 million budget, noting a $24 million gap between the commission's recommended $52M for city homelessness programs and the mayor's proposed $27M. She stated the commission does not have $15M in reserves to offset the city cut, and that programs like HIP, the multidisciplinary outreach team (MDOT), peer program, and day center would face severe reductions or elimination.
• IBA Analyst Amy Lee noted that the housing commission's HUD-held reserves will dip below one month of voucher payments, and that pulling from the waitlist is paused. She suggested exploring regional partnerships for HIP.
• Councilmembers emphasized that prevention is more cost-effective than crisis response. Council President Pro Tem LaCava asked about reserving the $15M reduction, and Jones reiterated it is not feasible. Councilmember Moreno noted the $15M was not earmarked for specific programs and questioned the city's approach. Councilmember von Wilpert praised the flood response and sought better communication between the city and housing commission.

Office of Emergency Services - Subitem M

• Director Chris Seiser presented a modest 3.6% reduction ($145,300) from FY2024, mainly from non-personnel costs. Highlights included response to the January 22 flood, active shooter exercises, and the launch of the San Diego Hazard Dashboard.
• Councilmember Moreno criticized OES's response to the January flood, rating it a failure and requesting a full report on shortcomings. Seiser acknowledged gaps in situational awareness on the 23rd. Councilmember von Wilpert asked about cyberattack preparedness and training for future floods. Councilmember Foster called for a lessons-learned session with CalOES.

Engineering and Capital Projects / CIP - Subitem N

• Director Rania Amin presented an $871.9 million CIP budget—the largest in city history. Highlights include 71 miles of road overlay projected for FY2024, reduction in vacancies from 17% to ~10%, and the merger of the Strategic Capital Projects department back into ECP to improve synergy.
• IBA Analyst noted a $4.8 billion infrastructure funding gap and concerns about reliance on debt financing ($652M backlog). The city faces challenges with low bidder interest and high bid prices.
• Councilmember Campillo requested immediate funding for the San Carlos Library. Councilmember Moreno sought clarity on emergency projects ($24M for new emergencies in FY25) and raised equity concerns about flood resilience spending. Councilmember von Wilpert asked about fire station 48 and 33 timelines and the fire training facility. Councilmember Foster requested a corrected, user-friendly CIP project list.

Key Outcomes

• No formal votes were taken; these were informational hearings.
• Multiple programs were signaled for potential restoration in the May Revise (to be released May 14): MDOT, eviction prevention (partial), day center, and housing instability prevention. The Mayor's Office confirmed ongoing discussions.
• Council members generally opposed the $15 million reduction from SDHC reserves and urged the administration to work more collaboratively with the housing commission on a sustainable funding plan.
• Councilmember Moreno requested a full after-action report from OES on the January flood response.
• Several councilmembers requested individual district briefings on road repair plans.
• The CIP budget will be further discussed at the May 16 budget review committee meeting and the May 22 ATI committee meeting for the year-end CIP monitoring report.