San Diego Budget Review Committee Informational Meeting on FY2025 Budget - June 7, 2024

The Budget Review Committee met on June 7, 2024, for an informational discussion of the Independent Budget Analyst's (IBA) final report on the mayor's proposed Fiscal Year 2025 budget and the May revision. No votes were taken, but council members outlined priorities for the final budget adoption scheduled for Tuesday, June 11, 2024. The IBA identified $12.9 million in largely one-time resources and recommended $9.7 million in expenditure modifications based on council member memos. The meeting included extensive public testimony.

Consent Calendar

• The committee unanimously (8-0, with Councilmember Moreno absent) approved the minutes of the May 16, 2024, Budget Review Committee meeting after a brief public comment period where speakers requested more detailed minutes and inclusion of public submissions.

Public Comments & Testimony

More than 100 members of the public testified in person and virtually, advocating for various budget priorities:

• Arts and Culture: Numerous speakers urged full restoration of the Arts, Culture, and Community Festivals (ACCF) and Community Projects, Programs, and Services (CPPS) funding, citing economic benefits and community cohesion. Speakers included Carol Stevenson (Jewish Family Service), Christine Martinez (Arts & Culture San Diego), and others.
• Housing and Homelessness: Testimony focused on restoring $8 million cut to the San Diego Housing Commission, funding the Housing Instability Prevention Program (HIPP), supporting the Kettner & Vine megashelter (both support from Father Joe's Villages and opposition from Lived Experience Advisors), and expanding safe parking and shelter beds.
• Flood Victims: Dozens of residents from the January 22, 2024, floods in Southeast San Diego pleaded for direct financial assistance, extended hotel stays, and repairs. Speakers like Sandra Garcia, Perla Lopez, and Annabel Valdez described lost homes and health issues.
• Youth Programs: Community Budget Alliance and youth advocates called for restoration of youth drop-in centers, after-school programs, and the Office of Child and Youth Success. High school students from Mid-City CAN spoke about the need for park improvements at Jeremy Henwood Park and climate equity funding.
• Equity Programs: Many speakers demanded full restoration of all equity-focused programs cut in the mayor's proposed budget, including the Community Equity Fund, Office of Immigrant Affairs, and the Cannabis Social Equity Program. Alliance San Diego and others argued the budget disproportionately harms low-income and BIPOC communities.
• Street Vending Enforcement: Small business owners like Letty Soto and Peter Soto urged continued funding for sidewalk vending ordinance enforcement, while Councilmember Moreno’s proposal to reduce enforcement resources drew opposition.
• Other Issues: Speakers addressed funding for Vision Zero (fixing the fatal 15 intersections), library services, park rangers, lake recreation, the SDG&E public power study, and the Office of Immigrant Affairs.

Discussion Items

• IBA Presentation: Charles Modica and team presented the final budget report, identifying $12.9 million in available resources (mostly one-time) and recommending $9.7 million in modifications. Key recommended items included: $2 million for Small Business Enhancement Program and CPPS, $450,000 for arts festivals (TOT-funded), $5.9 million for climate equity projects, $785,000 for Vision Zero intersections, $500,000 for Southcrest Rec Center, and $120,000 for North PB Lifeguard Station. The IBA noted $3.1 million in unallocated general fund resources and outlined options for additional cuts to free up funds.

• Councilmember Priorities:

  • Chair Lee supported IBA recommendations and added priorities: full restoration of Community Equity Fund (for flood victims), youth drop-in centers, housing commission funding, HIPP, shelter identification, and funding for Henwood Park, public power study, and cannabis social equity program (conditional on program development).
  • Council President Elo Rivera declared he cannot support a budget that does not fund Community Equity Fund, youth drop-in centers, and HIPP. He urged using city council authority and opposed cuts to equity programs.
  • Councilmember Campbell emphasized homelessness response (safe parking, shelter) and continued enforcement of the street vending ordinance.
  • Councilmember Whitburn strongly advocated for the Kettner & Vine 1,000-bed shelter, citing 624 homeless deaths in 2023 and a moral obligation to provide shelter beds. He challenged colleagues to offer alternative sites.
  • Councilmember Von Wilpert thanked the IBA and highlighted restored programs (eviction prevention, library staffing, police front desk) and urged careful use of capital funds given emergency needs.
  • Council President Pro Tem LaCava supported IBA Table 1 and Table 2 recommendations, but emphasized rapid use of $785,000 for quick-fix intersection improvements. He prioritized HIPP and youth drop-in centers as immediate-impact items, and called for urgent flood recovery action outside the FY25 budget process.
  • Councilmember Foster insisted on $3 million for Community Equity Fund for flood victims (non-negotiable), youth drop-in centers, and criticized the city's failure to help flood victims. He noted his May 8 memo requesting immediate fund transfer had no action.
  • Councilmember Moreno supported IBA recommendations, stressed restoration of equity programs, opposed cuts to street vending enforcement and new park ranger positions, and called for delaying the Kettner & Vine shelter to free up funds for community programs.
  • Councilmember Campillo emphasized support for the IBA recommendations and highlighted the need for ongoing equity funding, climate equity, and arts funding.

• Resource Discussion: Chair Lee noted options including CDBG funds to backfill Housing Commission NOFA, PLHA funds for rental assistance (subject to plan amendment), and potential savings from delaying open-space park ranger positions and San Diego River Park rangers. Councilmember LaCava suggested cuts from certain park positions could free up additional funds.

Key Outcomes

• No formal action was taken; the meeting was informational only.
• Council members expressed a general consensus on several priorities, including restoration of CPPS/ACCF arts funding, small business enhancement, climate equity projects, and Vision Zero investments.
• The $3.1 million in unallocated general fund resources remains available for additional council priorities.
• Council will take up the budget for final adoption on Tuesday, June 11, 2024, where motions to amend based on today's discussion are expected.
• The IBA noted that conditional support from three council members (whose support for certain items required identified resources) created ambiguity; the council is not bound by IBA recommendations.
• Chair Lee emphasized that the city faces a challenging budget year with structural deficits, and future revenue measures (November ballot) will be critical.