SAN DIEGO — San Diego Mayor Todd Gloria announced Wednesday that the city faces a massive $258 million budget deficit for the upcoming fiscal year, prompting immediate action to curb spending and reimagine city operations.
In a press conference, Gloria outlined the severity of the city's budget shortfall and the difficulties in finding $258 million in a city in the grips of a homelessness crisis, billions in overdue infrastructure needs, and aging city facilities.
"To put that $258 million deficit in perspective, last year, we closed a $170 million budget deficit, and you'll recall that closing that gap was not easy. This one will be even more difficult," Gloria said.
The mayor announced several immediate measures to begin addressing the shortfall:
- Freezing all but the most essential hiring
- Suspending non-essential overtime
- Pausing non-essential spending on travel and training
- Reviewing and prioritizing capital improvement projects
- Halting the civic center revitalization proposal
- Evaluating city office space leases
Gloria emphasized that despite the financial challenges, his administration's key priorities would remain unchanged.
"Since the beginning of my administration, I focused on four key priorities: keeping San Diego safe, addressing our homelessness crisis, building more homes and fixing our roads. These priorities will not be changing," he stated.
The mayor called for a complete overhaul of the budgeting process, requiring all city departments to budget from scratch and focus on delivering only the most essential services.
He intends to work closely with the City Council, civic organizations, employee unions, and the public to reimagine city operations.
"My goal in this endeavor is to avoid a series of deep cuts in successive budget years, instead right-size our city services to the resources we have without expecting increased revenue," Gloria said.
City Council President Pro Tem Joe LaCava echoed the mayor's sentiments, acknowledging the difficult road ahead.
"The takeaway is unmistakable: we must cut expenses, and some of those cuts will be deep, very deep, but it is an opportunity to right-size government," LaCava said.
Both Gloria and LaCava stressed the importance of collaboration between the executive and legislative branches and public input in navigating this financial crisis. As the city grapples with this significant budget shortfall, residents can expect to see city services and operations changes in the coming months.
The mayor and city council will work to finalize a balanced budget by June, with public input opportunities beginning next week at the Budget Committee meeting.