San Diego Budget Review Committee Meeting - May 4, 2026

The Budget Review Committee (BRC) met on May 4, 2026, to review the Fiscal Year 2027 draft budget. The meeting covered the Independent Budget Analyst (IBA) overview, the mayor's proposed budget, and detailed presentations from the financial branch (special promotional programs, citywide expenditures, risk management, IT) and the performance and logistics branch (general services, transportation, performance and analytics). A key theme was the need to address an $118 million structural deficit through significant cuts, with three areas (recreation centers, libraries, and homelessness programs) having reduction targets without specified operational impacts. The meeting also included extensive public comment, with many speakers opposing cuts to arts, libraries, parks, and youth services, and advocating for reallocating funds from policing and surveillance.

Public Comments & Testimony

• Nearly 125 in-person speakers and 13 virtual speakers provided testimony on the FY27 draft budget. The majority opposed cuts to arts and culture (86.6% reduction), library services, parks and recreation, and the Office of Child and Youth Success. Many urged the council to reallocate funds from the police department budget increases and the Flock surveillance contract.
• Several speakers shared personal stories about the importance of libraries, parks, and arts programs for youth, families, and underserved communities. Speakers from the LGBTQ+ community requested that opioid settlement funds be used to support substance use disorder treatment at the San Diego LGBT Community Center.
• Some speakers offered alternative revenue solutions, including TOT reform ballot measures and a loan from the SDG&E underground surcharge fund.
• A group of parents and students from Our Lady of Angels Church called for a stop sign and crosswalk at G Street and 24th Street to improve pedestrian safety.

Discussion Items

• IBA Presentation: Charles Modica presented the IBA's analysis of the proposed $6.42 billion budget ($2.24 billion general fund). The structural deficit grew from $88.8 million to $118 million due to slower revenue growth and increased pension payments. Key areas of concern: the budget assumes cuts to recreation centers, libraries, and homelessness programs without specifying operational impacts. The Division of Race and Equity highlighted equity implications, noting that reductions in historically disinvested communities (Districts 4, 8, 9) would compound disparities.
• Mayor's Introduction: Mayor Todd Gloria introduced the budget, emphasizing the need to close the structural deficit and noting that the city has limited discretionary funds due to fixed costs (public safety, pensions, debt service).
• Special Promotional Programs: The budget proposes a $12 million reduction in arts and culture funding (to $1.9 million), which is 0.6% of TOT. The entire one-cent council discretionary TOT allocation ($29.7 million) is transferred to the general fund. Councilmembers questioned the prioritization of Petco Park operations ($813,000 increase) over arts funding.
• Citywide Program Expenditures: Increased by $27.7 million, largely due to debt service and interest on short-term notes (TRANs). The $7 million contribution to the Climate Equity Fund is waived again.
• Risk Management: The department is understaffed, with workers' compensation caseloads (203 per adjuster) exceeding industry standards (158). The loss control team is eliminated, and a program coordinator position is cut.
• Information Technology: The budget maintains funding for digital equity programs (SD Access for All), but defers network modernization and security upgrades. The ERP modernization project continues with $20.5 million, but backfilling staff positions is not yet budgeted.
• General Services: Facility services lose 13 vacant positions, increasing the square footage per trade worker to nearly double the municipal benchmark. The fleet electrification program coordinator is eliminated, risking non-compliance with state CARB mandates and loss of grant funding.
• Transportation: The multimodel team (14.5 FTEs) is eliminated, saving $2.4 million. This team designs bike lanes, crosswalks, and safety improvements on repaved streets. Councilmembers expressed concern that this will undermine Vision Zero and climate goals, and reduce the city's ability to secure affordable housing grants tied to bike infrastructure. The urban forestry program coordinator is also cut, affecting tree maintenance and grant compliance.
• Performance and Analytics (PANDA): The department faces a program coordinator reduction, slowing progress on audit recommendations (KPI implementation) and delaying the pay equity report. The web team is transferred to PANDA, but reductions in open data and Get It Done funding may affect public transparency.

Key Outcomes

• No motions or votes were taken; the meeting was informational. The committee will continue hearings on May 5, 2026, with department-specific presentations.
• Councilmembers expressed strong concerns about the proposed cuts to arts, libraries, parks, and the multimodal team, and indicated they would seek alternative reductions or revenue options.
• The next public comment period on the FY27 budget (including the May Revise) is scheduled for Monday, May 18, 2026, at 6:00 p.m. The initial council vote on the final budget is set for Tuesday, June 9, 2026.