San Diego Budget Review Committee Meeting – May 7, 2026

The Budget Review Committee convened on May 7, 2026, to discuss the Fiscal Year 2027 proposed budgets for the Homelessness Strategies and Solutions Department (HSSD), San Diego Housing Commission (SDHC), San Diego City Employees Retirement System (SDCERS), and San Diego Convention Center Corporation. The session featured presentations, IBA analysis, council member questions, and extensive public testimony, focusing on a $3.8 million reduction target for homelessness services and long-term funding challenges.

Public Comments & Testimony

• HSSD (Subitem I): Over 50 speakers testified, most opposing cuts to the Neil Good Day Center, safe sleeping/safe parking programs, and eviction prevention. Speakers included representatives from Father Joe's Villages, Dreams for Change, Legal Aid Society, community volunteers, and individuals with lived experience. They emphasized that the day center provides critical services (showers, mail, shelter referrals) and that prevention is cost-effective. Some speakers (e.g., Ballpark District Community Partnership) supported preserving shelter beds but urged replacement before closure.
• SDHC (Subitem J): Testimony supported the housing commission's budget and preservation efforts. One speaker raised concerns about project-based voucher portability and property management quality.
• SDCERS (Subitem K): One speaker criticized pension fund mismanagement, while others appreciated the long-term perspective.
• Convention Center (Subitem L): Public comment included concerns about tourism revenue falling short, the need for reinvestment, and a reminder that neighborhood infrastructure also requires funding.

Discussion Items

Homelessness Strategies & Solutions (HSSD)

• The department presented a $57.1 million general fund budget (up $3.3 million from FY26) with $31.3 million from Measure C and $0 unrestricted general fund. Three reduction options to meet a $3.8 million target were outlined:
  • Option A: Partial reduction of 16th & Newton shelter (200-250 beds), eliminate Central Elementary safe parking, cut security at Old Central Library, and reduce eviction prevention program (EPP) by $200,000.
  • Option B: Eliminate 20th & B safe sleeping (186 spaces), cut Central Elementary safe parking, and reduce EPP by $49,000.
  • Option C: Eliminate OLOT safe sleeping tier 4 (40 spaces), reduce family reunification by $46,000, eliminate safe parking at two sites, cut library security, and reduce EPP by $2.1 million (71% cut).
• IBA noted that the budget also includes closure of Neil Good Day Center and elimination of downtown public restrooms. EPP serves thousands annually with a 92% homelessness-avoidance rate.
• Division of Race and Equity highlighted equity concerns, noting that Option C's EPP cuts would disproportionately affect low-income renters.
• Councilmember Whitburn supported Option A due to 16th & Newton flooding issues, emphasizing that shelter preservation is life-saving.
• Councilmember Campillo questioned stakeholder coordination and the cost-effectiveness of proposed cuts, stressing that prevention reduces long-term costs.
• Councilmember Ila Rivera criticized the lack of early communication with service providers and urged protection of prevention programs.
• Council President Pro Tem Lee noted that the mayor's proposed options lack a coherent plan and pointed out that no staff reductions were proposed for HSSD despite cuts elsewhere.
• Council President LaCava discussed the importance of state HAP funding and Measure C, and noted that the council has flexibility to modify reduction options.

San Diego Housing Commission (SDHC)

• SDHC proposed a $688 million budget. Key challenges include below-minimum reserves for the Moving to Work voucher program and ongoing federal funding uncertainty.
• The commission is implementing cost-saving measures (staff reductions, rent increases, family contribution adjustments) to gradually rebuild reserves.
• IBA noted that the Affordable Housing Preservation Fund transfer from NEF is pending council approval (scheduled June 23). Council member Campillo and Pro Tem Lee praised the commission's strategic planning and preservation efforts.

San Diego City Employees Retirement System (SDCERS)

• SDCERS presented a $19.4 million administrative budget (1.2% increase). The plan has a $13.3 billion trust fund and is projected to reach 100% funding by 2042. No council questions were raised beyond Campillo's query on the discount rate.

San Diego Convention Center Corporation

• The convention center forecast a net operating loss in FY27 and FY28, with reserves projected to deplete by end of FY28 if no action is taken. Capital needs include aging infrastructure; $53.9 million remains in the Measure C fund balance.
• IBA recommended a short- and long-term funding strategy, noting the Measure C sunset clause (2035). Council members stressed the importance of reinvesting TOT revenue to maintain competitiveness.

Key Outcomes

• No formal votes were taken; the meeting was informational. Council members expressed strong preferences:
  • Several members signaled support for Option A (shelter reduction at 16th & Newton) while opposing cuts to eviction prevention.
  • The council emphasized flexibility to craft alternative reduction packages; final budget modification memoranda are due to IBA by May 20.
  • Council President LaCava noted the need to balance immediate cuts with potential state HAP funding increases.
• For SDHC, council members endorsed the preservation fund transfer and urged continued reserve rebuilding.
• The convention center's structural deficit was acknowledged; discussions on a reinvestment strategy will continue, subject to the legal settlement limiting expansion talk until January 2027.
• The committee recessed at approximately 2:30 p.m. and will reconvene on May 8, 2026, at 9:00 a.m.