San Diego Budget Review Committee Meeting Summary - June 6, 2025

The Budget Review Committee met on Friday, June 6, 2025, to discuss the proposed Fiscal Year 2026 budget. The Independent Budget Analyst (IBA) presented its final report (IBA Report 25-18) identifying $18.5 million in net new resources and $12.5 million in recommended expenditure modifications, leaving $6 million available for additional council priorities. The meeting was informational, with no formal votes taken, but set the stage for critical decisions on Monday, June 9 (trash fee vote) and Tuesday, June 10 (final budget adoption).

Public Comments & Testimony

• Over 100 speakers provided testimony, both in chambers and virtually, with a strong emphasis on opposing cuts to libraries, parks, recreation centers, and public restrooms. Many speakers urged restoration of services, especially in underserved communities.
• Library and Park Support: Numerous speakers, including representatives from the San Diego Library Foundation, Mid-City CAN, and individual residents, called for full restoration of library and recreation center hours, Monday operations, and park maintenance. Specific requests included $2.5 million for the Officer Jeremy Henwood Park playground and restoration of Lake Murray and Lake Miramar reservoir access.
• Surveillance Opposition: Multiple speakers (Alliance San Diego, ACLU, community members) opposed funding for ALPR (automated license plate readers) and flock cameras, arguing they are used for mass surveillance and shared with ICE, terrorizing immigrant communities. They demanded the $1.5+ million be redirected to community services.
• Other Requests: Speakers advocated for funding the LGBT Community Center's behavioral health services ($300,000 from opioid settlement funds), opposing trash fee increases, restoring animal services contracts, and supporting Safe Streets initiatives (Vision Zero).

IBA Presentation: May Revise and Budget Modifications

• May Revise Adjustments: The IBA summarized $4.3 million in net expenditure increases, including $2 million partial restoration for animal services and $1.5 million in one-time resources (e.g., trench restoration revenue). The largest ongoing resource change was a $3.5 million increase in sales tax offset by a $4.2 million decline in Transient Occupancy Tax (TOT).
• IBA Recommended Modifications: The IBA identified $7.9 million in non-general fund resources (including $5 million for affordable housing prevention from neighborhood enhancement fees) and $10.4 million in ongoing general fund resources (including a $6.5 million technical adjustment for solid waste debt service, pending the trash fee vote). Expenditure modifications included $2.1 million for animal services contract budget correction, $4.1 million for fleet fee reinstatement, and restoration of a parks electrician position.
• Additional Options without Recommendation: The IBA presented potential savings from a mandatory one-week furlough for unclassified unrepresented employees ($1.9 million), elimination of vacant positions, and future resources like billboard digital advertising (not yet ready).

Discussion Items

• Councilmember Whitburn: Opposed increasing expired parking meter fines to $67, calling it regressive. Proposed a compromise $55 fine (with mandatory surcharge) to raise $1 million, offset by $1 million in digital advertising revenue from billboards.
• Councilmember Ilo Rivera: Asked for administration commitment to adhere to budgets, noting that without accountability, additional resources may be wasted. Also inquired about using opioid settlement funds for the LGBT Center's substance use disorder services.
• Council President Pro Tem Lee: Emphasized the need for honest conversation about long-term revenue shortfalls beyond this year. Supported restoring Monday hours at 14 library branches and full park restoration. Criticized underfunding of the animal services contract as contractual failure.
• Councilmember Foster: Questioned the process for identifying essential employees during the hiring freeze and asked about non-essential travel budget cuts. Noted that the city still has ~1400 vacancies and questioned why positions vacant for years remain funded.
• Councilmember Von Wilpert: Thanked colleagues and staff, supported opioid settlement funding for the LGBT Center, and defended police overtime as necessary for public safety. Noted that hate crimes decreased 9% in 2024.

Key Outcomes

• The meeting was informational; no votes were taken.
• The IBA identified $6 million in available resources for additional council priorities, but warned that if the trash fee (scheduled for Monday, June 9) fails to pass, the city would face $80 million in additional cuts, rendering restoration discussions moot.
• The council will consider final budget adoption on Tuesday, June 10, with the trash fee vote on Monday being determinative.
• Councilmembers expressed intent to restore cuts to libraries, parks, and recreation centers using identified resources and potential new revenues (e.g., digital advertising, parking reforms).
• Several councilmembers highlighted the need to prioritize underserved communities (Districts 4, 8, 9) and avoid funding surveillance technology that could be used by ICE.

Risks Cited by IBA

• Public safety overtime could be under-budgeted by up to $12.5 million for police and $8.6 million for fire rescue based on current spending trends.
• The budget assumes $20 million from parking reforms and $72 million from the trash fee; failure to pass these requires equivalent cuts or new revenues.
• Economic downturn or recession could reduce sales tax and TOT revenues, with little buffer in the current budget.