SD Taxpayers

San Diego's oldest and most respected government watchdog and taxpayer advocacy group

[SD Taxpayers @sdcta]

#101Ash is an example of the city engaging in an overly ambitious project that invariably costs more than expected and ties up valuable #SanDiego real estate that could otherwise be used for more productive purposes.

[Paul Krueger @paulkruegersd]

Did ⁦@MayorToddGloria⁩ write this lame and misleading headline? From the start, critics warned that this proposal was overly optimistic. It has now missed a significant financing deadline, and is clearly in jeopardy. That’s not an “adjustment.”

[SD Taxpayers @sdcta]

It’s déjà vu in San Diego.

The city Fiscal Year 2027 budget process was a rerun of 2026.

The city starts the year with record high levels of revenue supercharged with an influx of cash from new fees or taxes (trash collection, TOT, parking).

The mayor presents a budget characterized as ‘austere’ because a few departments that were created when the city was flush with COVID-era federal funding is scaled back.

The city underfunds reserves to support ongoing spending.

Personnel costs continue to ratchet up due to salary increases and ballooning pension payments.

Infrastructure funding is at best unchanged even as the storm drain, streets and city facilities continue to deteriorate.

The mayor and council move forward with another round of ill-considered tax or fee increases, generating legal fees and popular discontent.

None of the new funding is dedicated to infrastructure improvements.

Cuts are made to library and rec center hours.

The mayor and council spend two months accusing each other of fiscal irresponsibility while taking no steps to structurally reform the budget.

Minor budget adjustments are made, the city scrapes together enough funding to restore some library hours, and city staffers are shuffled between departments.

When the budget is finalized, the city still has 1,000 more employees than in 2021, vanity projects soaking up funds, and special interest- friendly legislation driving up the costs of construction.

The pension and infrastructure deficits continue to grow.

Elected officials take a summer break and San Diegans contend with fewer services and higher taxes and fees.

Unless something changes it will be déjà vu all over again next year.

https://t.co/cr21CLIfoB

[SD Taxpayers @sdcta]

The #SanDiego budget may be balanced in a narrow technical sense, but the “FY 2027 Budget is still structurally imbalanced” and the city is facing a $32.9 million deficit in 2028 that will be harder to close as one-time revenue opportunities (such as using Prop C funds to prop up ‘the arts’) are exhausted.

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[SD Taxpayers @sdcta]

Another example of the gimmicks being used to close the FY 27 #SanDiego budget gap.

“Decisions like diverting Measure C funds from the Convention Center may avoid difficult cuts this year, but they set us up for the same budget challenges next year,” (Mayor Gloria) said.

https://t.co/LyTxYhUiUc

[SD Taxpayers @sdcta]

"#SanDiego is in the middle of a brutal budget crisis.

City leaders are debating cuts to libraries, recreation centers, arts funding, flood prevention, zoning enforcement, city staffing, and other basic services.

Residents are being told there is not enough money to preserve everything people value.

Yet the same city somehow found the time, money, staffing, legal bandwidth, consultant work, political capital, and administrative resources to design, approve, implement, defend, revise, and now reverse two fee programs that should have been more carefully evaluated from the beginning."

A proposal by Councilmember Campillo to prevent a repeat of the trash fee controversy and create a new policy to "identify Constitutional and state law requirements for imposing or increasing property-related fees, and provide clear, consistent guidelines for conducting cost-of service studies, noticing public hearings, and Prop 218 proceedings" was rejected in February.

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[SD Taxpayers @sdcta]

A setback for transparency as a "deadlocked #SanDiego County Board of Supervisors Tuesday failed to advance a transparency measure to end the practice of creating ad-hoc subcommittees with little public insight or knowledge."

https://t.co/zLJVPRigbD

[SD Taxpayers @sdcta]

Despite the budget shortfall 101 Ash continues to tie up $ millions in government funds and will continue for years to do due to schedule delays.

"The redevelopment deal for the city of #SanDiego’s #101Ash St. property is still pending as the development team planning to lease and convert the office tower into apartments for low-income families works to close a roughly $8 million gap in financing for the $252 million project.

"In the meantime, the city continues to foot the bill to maintain the 101 Ash tower."

The city needs to spend less time and money on marginal real estate deals and divert the resources to close the infrastructure funding gap.

https://t.co/JHcg2YHUpH

[SD Taxpayers @sdcta]

“A budget is the purest form of policy priorities, and infrastructure is taking a backseat,” said former City Councilmember Mark Kersey. He now works as the president and CEO of the #SanDiego County Taxpayers Association, which has been sharply critical of the city’s financial management under Gloria.

“The multi-billion dollar infrastructure deficit is the biggest crisis facing the city because there is no real plan to address it. Without some kind of strategic vision to close that gap — as well as actually resolve the city’s ongoing structural budget deficit — the city will continue to languish, and it’s really just a countdown to failure.”

"Kersey said the additional workers and the pay raises show that the city 'has clearly prioritized employee salary increases over infrastructure investments for the last six years.'”

"Since 2022, the mayor and council have waived about $39 million in contributions meant to go to the dedicated fund and instead channeled the money into the general fund.

"While that’s allowable under the rules governing the fund, Kersey said it’s poor policy."

https://t.co/cr21CLIfoB

[SD Taxpayers @sdcta]

The #SanDiego city council budget is expected to be approved this afternoon.

Despite record levels of revenue, the budget will still be structurally unbalanced.

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