Mayor Todd Gloria's proposed budget was receiving backlash Thursday from various groups, with the mayor proposing major cuts to services and programs in an effort to plug a $118 million structural deficit.
The draft released Wednesday budget actually bolsters police and fire department funding -- while consolidating various services in those two departments -- while slashing arts grants, workforce and library and recreation center hours and services.
"This is a balanced, responsible budget that confronts a $118 million deficit directly," Gloria said. "It makes the tough decisions now -- including targeted reductions to staffing and support functions -- to protect the services San Diegans rely on and keep the city on solid footing."
The $6.4 billion proposed budget for Fiscal Year 2026/27 will be discussed, debated and amended until June 9, the city's deadline for adopting a final budget. Gloria said the nearly $120 million hole in the city's finances was built over decades of deferred maintenance, rising costs and changing priorities both in Washington and Sacramento.
One of the cuts appears to eliminate funding for the Neil Good Day Center operated by Father Joe's Villages.
"We recognize the city's continued commitment to addressing San Diego's homelessness crisis in this year's proposed budget," said Deacon Jim Vargas, president and CEO at Father Joe's Villages. "However, the elimination of funding for the day center raises serious concerns, particularly given its minimal cost relative to its impact. We've been aware of ongoing opposition to the day center, but the city has historically prioritized long-term solutions that address homelessness at its root.
"Moving away from that approach now risks setting back that progress and creating new challenges for our community. Each year, the day center serves nearly 7,000 individuals, often as their first point of connection to services. It provides basic necessities like hygiene, clothing, and medical support, while also helping people access housing resources and employment assistance."
After widely unpopular efforts to raise revenues instead of cutting city services -- such as paid Balboa Park parking, special event parking rates increasing Downtown and the trash fee -- Gloria's proposed budget appears to focus on paring down rather than expanding revenue sources.
"San Diegans have sent a clear message: Raising revenues to fill the gap is not an option," City Council President Joe LaCava said. "We must deliver a balanced budget with the limited resources we have and put our city on firmer financial footing."
Last year's adopted budget solved around 85% of the city's long-term structural deficit. Gloria said his proposal on Wednesday takes care of the rest.
The draft proposal slashes the city's arts spending by nearly $12 million, from $13.8 million to just $2 million. Groups such as San Diego Pride, the Timken Museum, The Old Globe and others rely heavily on city backing.
Claire Johnson, CEO of San Diego Magazine, wrote in an op-ed Thursday that cutting arts funding "is one of the most expensive mistakes a city can make," citing the city's nonprofit arts and culture sector creating $1.2 billion in economic activity, along with 16,900 jobs and $275.7 million in tax revenue