Following months of deliberations — and facing a $258 million deficit — the City Council finalized San Diego’s 2026 budget on Tuesday.
The first budget draft proposed by Mayor Todd Gloria included reductions of recreation center and library operating hours as well as various community programs, such as the Small Business Enhancement Program — a move widely criticized by the public throughout the budget revision process.
The finalized budget includes an increase of $48.4 million in expenditures from the April budget draft, funds that restore some of the programs that had been on the chopping block.
The changes resulted in a total budget of $6.09 billion for the upcoming fiscal year. The total general fund budget is $2.15 billion, a $4.3 million increase from Gloria’s initial proposal.
However, the restorations, including for environmental services and homeless outreach, depend on revenue streams that have yet to be approved. Independent budget analyst Charles Modica said that some revenue projections were “relatively optimistic” and repeatedly warned of the risk of relying on possible revenues from pending fees.
A majority of the council voted to approve the budget, with councilmembers Jennifer Campbell and Vivian Moreno dissenting.
“I am not convinced that this entire list of things can be paid for out of this particular budget, and I don’t want us to get into a situation where we’re spending much more than we have,” Campbell said.
Much of the council meeting concerned the budget restorations, or funding now re-allocated to programs initially defunded or cutback in the draft budget. They were split across seven main categories: parks and libraries, community programs and equity, homelessness services and affordable housing, fire safety and stormwater, as well as capital improvement projects.
Budget Committee Chair Henry Foster led a coalition of councilmembers in the push to restore some funding.
Notable restorations included full-day operating hours on Mondays at 14 library branches, which would amount to approximately $3.1 million in costs, along with hours for all recreation centers, maintenance of public restrooms and city reservoirs.
The Small Business Enhancement Program, a $750,000 expenditure, and the Office of Race & Equity, a $450,000 expenditure, were also restored.
The community, though, has been clamoring for a budget that provides more services to the public and advocates and community members from organizations like Mid-City CAN and the Climate Action Network continued to do so Tuesday.
They held up signs stating “Fund our futures,” “Fund our libraries” and “Fund our parks” during a press conference prior to the City Council meeting.
“‘Fund our futures’ is about cycling our budgeting into parks, into libraries, into things that the community actually gets involved with,” said Mid-City CAN advocate Anthony Girmai. “We want to further invest in (things) that would benefit the community.”
The public comment section during the meeting lasted for approximately two hours, with many speaking out against the city’s $2 million contract with Flock Safety for automated license plate readers, which many fear will be utilized by the Trump administration for federal immigration enforcement.
District 3 Councilmember Stephen Whitburn said that although he voted in favor of ALPRs, current use of the data “merits review,” noting that he could “only imagine the fear that is being felt by many in our society who have been targeted by this administration.”
Public commenters and city officials alike praised the allocation of $300,000 from opioid settlement funds to the San Diego LGBT Community Center’s substance use disorder treatment services.
Representatives from the Office of the Independent Budget Analyst, or IBA, also identified a number of areas that could contribute to balancing the city budget, though the message was delivered with a warning. The council passed the IBA’s recommendations.
One such recommendation concerned fines for expired parking meters. The City Council passed an amendment raising the fine from $42.50 to $54.50, which the IBA reported projects to a $2 million revenue increase.
Modica said the council should avoid overestimating city revenues, noting that the city faces “broader economic risks.”
“Given increased nationwide economic volatility that is stemming from the erratic national policies and positions being taken by the federal administration, the risk of an economic downturn, or even a full recession, is heightened,” Modica said. “There is very little buffer built into the budget that would be able to absorb continued declines.”
The budget was also balanced with the City Council’s adoption of a trash fee, which Modica said would increase the general fund by approximately $80 million. But many assumed revenue streams pose risks, according to Modica, who said he only received an amendment from the City Council around three hours prior to the meeting.
The amendments presupposed that the implementation of paid parking at Balboa Bark and the San Diego Zoo would contribute approximately $5 million to city coffers, despite the fact that negotiations regarding paid parking have just begun.
“When our government works well and treats people with dignity and owns up to their failures, the pay-up is not just better service, it’s restored faith in all of us,” said District 5 Councilmember Marni von Wilpert regarding budget transparency.
Gloria has five business days to veto or modify line items approved by the council, which can override any veto with a supermajority. The finalized budget will take effect when the new fiscal year begins on July 1.
