San Diego Budget Review Committee Meeting Summary – May 7, 2024

The Budget Review Committee convened on Tuesday, May 7, 2024, as part of a continuous budget hearing process that began May 1. The meeting covered several sub‑items of the information agenda, including the Commission for Arts and Culture, the Financial Branch (IT, Performance & Analytics, citywide expenditures, and special promotional programs), the San Diego City Employees Retirement System (SDCERS), the Convention Center Corporation, the City Attorney, the Personnel Department, and additional department reviews. No formal votes were taken; the meeting was informational, with public testimony heard for each item. The committee will reconvene on May 16 to review the May revision.

Public Comments & Testimony

• Arts & Culture (Subitem P): Over 20 speakers, representing artists, arts organizations, and coalitions, urged restoration of funding for the Community Projects, Programs, and Services (CPPS) and Arts, Culture, and Community Festivals (ACCF) programs. Several speakers noted the importance of these funds as a lifeline for small‑to‑medium organizations and described specific programs that would be eliminated if cuts stand. Councilmembers also voiced concern that the proposed budget walks back progress toward the “Penny for the Arts” goal.
• Financial Branch (Subitem O): Public speakers supported maintaining digital equity programs (SD Access for All) and opposed reductions that would cut Wi‑Fi at 59 park and recreation sites and slash digital literacy training by 90%. The San Diego Parks Foundation highlighted that it had installed the free Wi‑Fi infrastructure and cautioned that turning off service would cost more later. Several callers also stressed the importance of a 311 phone system to complement the Get It Done app.
• SDCERS (Subitem Q): A few callers questioned salary increases and pension costs, while others noted the importance of a well‑funded retirement system for employee retention. No official comment from the public in chambers.
• Convention Center (Subitem R): Speakers emphasized the facility’s aging infrastructure and the need for dedicated capital funding to avoid equipment failures that could jeopardize events and the $40.2 million in annual tax revenue generated. One speaker called for the center to align with the city’s Climate Action Plan.
• City Attorney (Subitem S): Commenters acknowledged the office’s work on domestic violence and gun violence restraining orders, but expressed concerns about enforcement of homelessness‑related citations and the processing of evidence in criminal cases.
• Personnel (Subitem T): Speakers supported the department’s efforts to improve hiring times and diversity, but cautioned that leaving an equal employment investigations position vacant could lead to costly discrimination settlements.
• Additional Departments (Subitem U): The public supported funding for the Ethics Commission and requested a position for the City Clerk’s office to improve meeting management. One caller urged faster hiring of an executive director for the Commission on Police Practices.

Discussion Items

• Commission for Arts and Culture: Director Jonathan Glus presented the FY25 proposed budget of approximately $3 million (a 42% decrease from FY24, largely due to one‑time World Design Capital funding). The decrease included removal of $500,000 for ACCF and the proposed cut to CPPS. Councilmembers Moreno, Campbell, Von Wilpert, Foster, and Lee advocated for reversing those cuts and stressed that arts funding should not backslide from 5.6% to 4.8% of TOT revenue. The IBA noted that the decrease in funding moves the city further from the “Penny for the Arts” goal.
• Financial Branch – IT Department: The proposed budget included a $57,000 reduction in digital literacy training (expected to cut 90% of classes) and unfunded requests of $227,000 for hotspot/Chromebook lending and $500,000 for Wi‑Fi at 59 parks. CFO Matt Vesby indicated the May revise may restore some of that funding. Councilmembers Moreno, Foster, and Von Wilpert emphasized the importance of digital equity, especially after the end of the federal Affordable Connectivity Program.
• Financial Branch – Performance & Analytics (PANDA): Director Kirby Brady highlighted the release of a customer experience strategy, a pay equity study, and deployment of over 370 Get It Done enhancements. The proposed budget cuts $100,000 from transparency tools (OpenGov) and $105,000 by holding a position vacant. The IBA noted that additional funding will be needed to sustain Get It Done expansion.
• SDCERS: CEO Greg Rodemaker presented an $18.3 million administrative budget (a 7.1% increase) to serve 26,000 members. Salary and benefit increases accounted for most of the rise, offset by a net staff reduction of one through outsourcing retiree health care. The board has plenary authority; the city council does not approve the budget. The IBA noted that investment expenses decreased by $3.3 million in FY23, but capital needs remain.
• Convention Center Corporation: President Rip Rippetoe and CFO Martin Maddox presented a budget facing a $5 million shortfall in requested capital support. The facility has over $400 million in deferred capital needs. Without dedicated funding, imminent electrical failures could cause event cancellations. The IBA suggested exploring options such as redirecting debt service savings after FY28 and engaging the Port of San Diego. Councilmembers expressed concern and asked for creative solutions.
• City Attorney: City Attorney Mara Elliott requested $109,000 (for security at Your Safe Place and a case management system) in addition to the proposed budget. The office’s $1.7 million reduction target is being met through personnel savings. Councilmembers thanked the office for its work on gun violence restraining orders and the family justice center.
• Personnel Department: Interim Director David Galarza reported progress on reducing hiring times (from 272 to 172 days) and efforts to improve diversity (e.g., partnerships with Center for Employment Opportunities). The department’s $291,000 reduction is achieved by holding three positions vacant. The IBA noted that an unfunded request for a payroll audit specialist was not included. Councilmembers praised the outstation program for cutting vacancy rates.
• Additional Departments: Councilmember Marino requested a detailed accounting of expenses for street vendor enforcement. Ethics Commission Executive Director Sharon Spivak explained that a $32,000 cut from personnel would harm its enforcement ability; the Department of Finance agreed to move the cut to contracts, but she noted that cumulative cuts have already reduced the contracts budget by $100,000 over five years. Council President Pro Tem LaCava thanked the City Attorney’s office and the Independent Budget Analyst.

Key Outcomes

• No motions or votes were taken; these were informational hearings.
• The committee received extensive public testimony and councilmember comments urging the restoration of funding for arts programs (CPPS, ACCF), digital equity (SD Access for All), convention center capital, and ethics commission operations.
• CFO Matt Vesby indicated that the May revision may include some restorations for SD Access for All (up to $250,000) and that efforts to lock in long‑term capital funding for the convention center are ongoing.
• Several councilmembers expressed support for a mid‑year review of TOT revenue to potentially increase arts funding.
• The committee will reconvene on Thursday, May 16, 2024, at 2:00 p.m. to review the May revision of the proposed budget.