San Diego Budget Review Committee Meeting Summary - May 6, 2026

The Budget Review Committee, chaired by Council President LaCava, convened on May 6, 2026, as part of a continuous week-long meeting (May 4–8) to review the proposed Fiscal Year 2027 budget. The meeting focused on Sub-item G (Housing and Community Development Branch Overview) and Sub-item H (Infrastructure Branch Overview), covering Development Services, City Planning, Economic Development, Public Utilities, Stormwater, and Environmental Services. The committee heard presentations from department directors, received analysis from the Independent Budget Analyst (IBA), and listened to extensive public testimony. Key themes included deep cuts to arts and culture funding (86% reduction), reductions in code enforcement, concerns about stormwater maintenance, and the impact of budget decisions on vulnerable communities. No formal motions were taken as the items were informational.

Public Comments & Testimony

• Arts and Culture (Sub-item G): Dozens of speakers, including representatives from the Old Globe, Fleet Science Center, San Diego Museum of Art, La Jolla Playhouse, San Diego Symphony, and many smaller organizations, urged the council to restore the proposed $11.8 million cut (86% reduction) to arts and culture grants. They highlighted that these funds support free educational programs for schools, veterans, seniors, incarcerated individuals, and underserved communities, and argued that arts generate significant economic activity and are essential to the city's identity. Many speakers expressed frustration over the lack of prior consultation and the absence of an economic impact analysis.
• Small Business Enhancement Program (Sub-item G): Speakers from business improvement districts and small business support organizations opposed the elimination of base funding for the Small Business Enhancement Program (SBEP), noting it provides critical support for storefront improvements, capacity building, and neighborhood events.
• Stormwater (Sub-item H): Public comments called for increased investment in stormwater infrastructure to prevent flooding, particularly in communities affected by the January 2024 floods. Speakers urged the council to oppose cuts to channel maintenance and water quality monitoring.
• Environmental Services (Sub-item H): Some speakers expressed support for the Solid Waste Management Fee and the new bulky item pickup program, while others criticized the fee structure and raised concerns about equity.

Discussion Items

Sub-item G: Housing and Community Development Branch Overview

• Development Services Department (DSD): Director Elise Lowe and Assistant Director Rima Corey Velez presented a budget that eliminates 7 FTEs (including 4 filled zoning investigators) from building and zoning enforcement, saving $1.1 million. This will result in no enforcement of priority three violations (e.g., illegal storage, billboard violations, adult entertainment zoning) and slower response to priority two cases. DSD also proposed adding a deputy chief operating officer position funded by the enterprise fund ($441,000), which council members criticized as shifting costs from the mayor's office. The IBA noted a projected negative cash balance of $5 million for the DSD fund and raised concerns about the cumulative impact on enforcement.
• City Planning Department: Director Heidi Von Blum reported a net reduction of $1.7 million to the general fund, including the elimination of a senior traffic engineer and $250,000 in non-personnel expenses. The department has tripled staff labor billings to $9.6 million and secured $3.4 million in grants. Councilmembers praised the department's efficiency and urged continued focus on community plan updates, especially in OTay Mesa Nestor.
• Economic Development Department (EDD): Director Christina Bibler outlined significant cuts, including elimination of base funding for the Small Business Enhancement Program (SBEP) and an $11.8 million reduction in arts and culture grants (Organizational Support Program and Creative Communities San Diego). The department also cut a community development coordinator and a program manager position. Councilmembers expressed strong opposition, arguing the cuts disproportionately harm small businesses and the creative economy. The IBA noted that these reductions dismantle decades of cultural infrastructure.

Sub-item H: Infrastructure Branch Overview

• Public Utilities Department (PUD): Director Juan Guerrero highlighted a focus on efficiency, including eliminating a smart metering project and reducing call center positions that were never filled. PUD budget adjustments are in line with previously approved rate increases. The IBA noted that future rate increases may be needed and recommended council provide direction on San Diego County Water Authority rates. Councilmembers questioned the status of lease renegotiations and non-rate revenue opportunities.
• Stormwater Department: Director Todd Snyder presented a budget with $1.9 million in new funding for levee studies (San Diego River) but offset by reductions of $430,000 in channel maintenance (outside Chollas Creek), $907,000 in water quality monitoring and public education (Think Blue), and cuts to wetland mitigation staff. Councilmembers expressed alarm, particularly after the January 2024 floods, and stressed that stormwater is a public safety issue. The IBA warned that failure to invest could lead to regulatory penalties and loss of federal flood insurance discounts.
• Environmental Services Department (ESD): Director Kirby Brady reported no programmatic cuts, but noted a general fund savings from restructuring positions. New investments include $5 million for a bulky item pickup program (52 FTEs) and funding for a fee rate study. The IBA highlighted the need to plan for the closure of Miramar Landfill and to address a potential $9 million revenue shortfall in the solid waste fund due to customers choosing fewer cans. Councilmembers commended the department's implementation of the Solid Waste Management Fee and warned against efforts to repeal it.

Key Outcomes

• No formal votes were taken during this informational session.
• Councilmembers expressed strong intentions to seek restoration of arts and culture funding, small business program funding, and code enforcement positions during the May revise or final budget adoption.
• Several councilmembers directed staff to provide additional information: a list of arts grant recipients by district, an analysis of the feasibility of charging the Padres for public safety services at Petco Park, and a full list of PUD memberships.
• The committee recessed at 5:00 PM and will reconvene on Thursday, May 7, 2026, at 9:00 AM.