San Diego Mayor Todd Gloria's revised 2025 budget adjusts funds for police, emergency services

fox5sandiego.com

Rhea Caoile

Summary

Here is a summary of key points about the City of San Diego's Fiscal Year 2025 budget:

Mayor Todd Gloria released a revised $5.81 billion budget proposal for FY 2025, which is a $161 million increase from his initial $5.65 billion proposal in April. The revised budget includes:

$13.5 million increased funding for public safety employee salaries and restored service levels compared to the initial proposal
$1.6 million to add police officers and $250,000 for the No Shots Fired gang diversion program
$9.3 million to support increased ambulance services
$3.3 million increase for the Economic Development Department from a hotel sale
$2.9 million increase for homeless programs

The initial $5.65 billion proposed budget represented a 9.1% increase from FY 2024. It aimed to invest in homelessness, housing, infrastructure, and public safety while making strategic reductions to address a structural budget deficit.

However, proposed cuts totaling $36 million to various equity-focused programs established in recent years have sparked community opposition and protests, especially from underserved areas. Programs facing reductions include:

- $8.5 million - Climate Equity Fund
- $3.2 million - Eviction prevention
- $3.1 million - Community Equity Fund
- $562,000 - Office of Immigrant Affairs
- $417,000 - Cannabis equity -
- $250,000 - No Shots Fired gang prevention

Critics argue the cuts will worsen disparities for marginalized communities already impacted by historical disinvestment and recent crises like flooding.

The City had been relying on $299.7 million in federal ARPA relief funds in recent budgets that is now depleted. The structural budget deficit, with expenditures exceeding revenues, is $197.8 million. City leaders say difficult decisions are needed to balance the budget while preserving core services.

SAN DIEGO (FOX 5/KUSI) — Mayor Todd Gloria unveiled a revision of his proposed budget for fiscal year 2025 on Tuesday, the final version that the San Diego City Council is set to vote on next month. It includes adjusted allocations for the city’s police and emergency services.

An earlier version of the proposed budget, released in April, was a $5.65 billion spending plan, a 9.1% increase from the previous fiscal year. The latest revision, released Tuesday, includes an increase of over $161 million in expenditures from the proposed budget, leading to a new total of $5.81 billion.

It also includes an increase of $13.5 million in expenditures from the general fund associated with salary increases, as well as the restoration of public safety and neighborhood services that were previously reduced in the earlier proposal.

In his previous budget proposal in April, Gloria mentioned that all city departments were asked to make potential cuts, although reductions in public safety services like San Diego Fire-Rescue and the police department are to be kept to a minimum.

Among the changes are the addition of $1.6 million and more police officers to the Juvenile Services Teams at nine area patrol commands and substation front counters. Another $250,000 will be allocated toward the city’s gang violence diversion program, No Shots Fired.

Additionally, $9.3 million will go toward supporting ambulance services in response to hourly wage increases and a rise in call volume, according to the proposal. It also says that $8 million has been added in project revenue for ambulance transports due to a 5% increase in call volume.

Another $1.2 million in revenue has been added to the budget due to a revised agreement between the city and San Diego International Airport for stand-by ambulance service, the city says.

Other changes include a projected $3.3 million increase in the economic development department associated with a transaction fee from the sale of the Hilton La Jolla Torrey Pines. The city also expects a $2.9 million revenue increase in the Homelessness Strategies and Solutions Department due to the transient occupancy tax fund, plus an additional $700,000 stemming from the Homeless Housing, Assistance and Prevention state grant.

City of San Diego 2025 Proposed Budget

Mayor's Message - Fiscal Year 2025 Budget

Dear San Diegans:

I am proud to present the City of San Diego's Fiscal Year 2025 Proposed Budget. This budget builds on the considerable progress made over the last three fiscal years while continuing to invest in my administration’s top priorities including homelessness, housing, infrastructure, and public safety.

The fiscal strategies laid out in the Fiscal Year 2025 Proposed Budget include both strategic reductions across various departments and targeted investments in critical areas. However, these measures, while significant, are part of a longer-term process to rectify the city's structural budget deficit. Addressing this issue is a complex and nuanced challenge, one that cannot be resolved overnight. It requires a multifaceted approach that combines immediate cost-saving measures with strategic planning for revenue generation and efficient service delivery over the coming years. It involves not only reevaluating current expenditure patterns but also exploring new and enhanced sources of revenue, alongside the judicious use of one-time solutions to bridge gaps without compromising essential city services.

This budget continues to prioritize funding for our most vulnerable residents. Funding for homelessness in the City of San Diego is set to increase by $18.3 million. This significant investment underscores the city's commitment to addressing homelessness with both urgency and compassion. In line with the City's Comprehensive Shelter Strategy, the Fiscal Year 2025 Proposed Budget includes dedicated funding to expand the capacity of the city's shelter system in alignment with calls from the City Council to expand shelter options. Specifically, the budget aims to increase the number of shelter beds available to people experiencing homelessness by at least 1,000 with on-site security, meals, housing navigation and case management services. The budget also includes funding to double the size of the City’s Safe Parking program by transforming the H Barracks into a Safe Parking site. This approach demonstrates a collaborative effort across the City to effectively leverage resources in the ongoing battle against homelessness, ensuring a comprehensive and sustainable strategy moving forward.

In my commitment to push forward initiatives that accelerate housing development and enhance affordability across San Diego, I've ensured the Fiscal Year 2025 Proposed Budget for our Development Services Department (DSD) funds our "Complete Communities Now" program, a key component of my strategy to make our housing project review process more efficient. By setting a new standard that requires housing projects under the Complete Communities framework to be reviewed within 30 days, we're placing DSD at the heart of a major transformation in how we handle housing development. By integrating these enhancements into DSD's budget, we're sending a clear message about our dedication to making housing more affordable and accessible, and speeding up the creation of new homes across the City.

In navigating the fiscal landscape for the Fiscal Year 2025 Proposed Budget, all City of San Diego departments were tasked with identifying potential budgetary reductions to address our structural deficit. However, it was crucial for my administration that reductions impacting our critical public safety services, specifically within the Fire-Rescue and Police departments, be kept to a minimum. This careful approach underscores our commitment to maintaining the safety and security of our community. Cost-cutting measures in the Police Department have been thoughtfully implemented to ensure efficiency without compromising the quality of service. Among these measures is the rightsizing of the police academies to up to 30 Police Recruits per academy, with four academies held annually. Additionally, we are implementing a policy to have two Police Officers per vehicle to reduce fuel costs and an overall reduction in extension of shift overtime. These adjustments reflect a balanced approach to budgetary management, ensuring the Police Department remains agile and responsive while also being fiscally responsible.

We are also making strategic investments in the Fire-Rescue Department. Notably, the budget includes the addition of 12 new positions along with necessary non-personnel expenditures to support the operational needs of the new Torrey Pines Fire Station, which is slated to open next year. This enhancement ensures that our Fire-Rescue Department is better equipped to respond to emergencies, reinforcing our dedication to public safety.

As Mayor of San Diego, I stand before you at a pivotal moment where the need to expand and rejuvenate our city's infrastructure, public spaces, and facilities has never been more pressing. Our commitment to improving the quality of services for our growing community is unwavering, yet we face the challenge of modernizing and enhancing these services amidst a backdrop of historical underinvestment and deferred maintenance. These are not just assets from the past; they are the backbone of our future.

I'm thrilled to share that our Transportation Department has developed a groundbreaking Pavement Management Plan (PMP), marking a first in the City's efforts to optimize our street maintenance and investment strategies. This plan is a pivotal step in our ongoing commitment to providing a reliable and efficient transportation network for our community. Based on the most recent pavement condition assessment conducted in 2023, the PMP leverages comprehensive, data-driven insights to strategically address our city-wide street conditions and identify necessary investments to maintain our street network effectively. This innovative approach allows us to proactively pinpoint funding needs, ensuring that our streets—vital arteries of our community—are kept in good condition. The Fiscal Year 2025 budget earmarks $104.6 million for street resurfacing construction and design. This significant investment represents an increase from the 60 miles of major street resurfacing goal in Fiscal Year 2024, to 75 miles in Fiscal Year 2025, while also funding the design work necessary to improve 105 miles in Fiscal Year 2026.

As your Mayor, I want to address the urgency of investing in our stormwater infrastructure to ensure we are keeping residents safe. We have identified funding needs for stormwater emergencies and other critical flood resilience and green infrastructure projects totaling $85.1 million. This is a substantial figure, but it's critical to ensure the resilience and safety of our city's infrastructure against future challenges. Importantly, this funding need comes in addition to our proactive investments under the Water Infrastructure Finance and Innovation Act (WIFIA). Through WIFIA, the City has the opportunity to utilize the Environmental Protection Agency’s special loan program for water infrastructure projects, covering 49% of up to $733.0 million in stormwater upgrades. These upgrades range from pipeline replacements and pump station repairs to comprehensive watershed restoration. The remainder of the project costs will be identified by the City through loans, grants, and other financing methods.

Our city needs significant investment to rebuild essential infrastructure like our stormwater systems and roads, while continuing to provide vital services that our residents depend upon daily. That's why San Diegans deserve to vote on increasing the City’s revenue in November 2024. However, it’s not simply about raising revenue; it's about unlocking the potential of our city and ensuring that every neighborhood thrives. By dedicating funds to improve essential neighborhood services, modernizing our aging infrastructure, and maintaining the safety of our families, we're laying the foundation for a more resilient and prosperous San Diego. By making the investments needed to upgrade infrastructure and address deferred maintenance, we can prevent more costly repairs in the future, saving taxpayers money over time.

As Mayor of San Diego, I'm proud to say that the dividends of our Build Better SD initiative are truly beginning to manifest. This innovative program, designed to streamline and enhance the efficiency of how we allocate Development Impact Fees (DIF), is proving to be a game-changer for our city's infrastructure development by addressing our infrastructure needs more holistically across San Diego, ensuring that funding is directed towards high-priority projects. The Fiscal Year 2025 Proposed Budget reflects this strategic shift, with an allocation of $9.6 million in Citywide DIF funds for parks projects, another $11.4 million for mobility projects, and $1.5 million earmarked for Fire-Rescue projects. Additionally, we're deploying $18.7 million in legacy DIF funds to community-based projects that will make a tangible difference in the lives of our residents. Beyond these allocations, we're also investing $13.7 million in improvements for Mission Bay Park and $7.4 million for enhancements to our other regional parks.

Continuing with my dedication to the welfare and development of San Diego's younger generation, this budget continues to maximize the "Employ + Empower" youth workforce training program. Thanks to $18.5 million in State funding for this program, we will continue to offer young individuals aged 16 to 30 the chance to engage in paid internships and job training opportunities right here with the City of San Diego. This budget includes funding for many opportunities within nearly every City department to boost youth employment and to usher in a new era of public servants who are as diverse and dynamic as our city itself. This is more than just a program; it's a pathway to empowerment for our city's youth, ensuring they have the tools, resources, and support they need to thrive and contribute to our community.

This budget is a plan for protecting our progress, addressing immediate needs while laying the groundwork for sustainable growth. We are tackling the structural budget deficit with a careful balance of reductions and investments, ensuring that our city remains vibrant and resilient. Our commitment to enhancing public services, from increasing shelter beds for people experiencing homelessness to streamlining housing development and ensuring our streets and infrastructure are robust and reliable, is unwavering. The investments we make today in public safety, infrastructure, and our youth promise to yield dividends for generations to come. As your Mayor, I pledge to continue steering our city with a vision that embraces all San Diegans, fostering a community that is inclusive, dynamic, and thriving. Together, we are building a San Diego that not only addresses today's challenges but also secures a bright and prosperous future for all.

Sincerely,

Todd Gloria

Mayor

The City of San Diego's Fiscal Year 2025 Proposed Budget is $5.65 billion and is comprised of five operating fund types, and the Capital Improvements Program (CIP). The Fiscal Year 2025 Proposed Budget represents an increase of $473.0 million, or 9.1 percent, compared to the Fiscal Year 2024 Adopted Budget. Increases in the General Fund are primarily associated with increased funding for wages and benefits, homelessness programs, and new facilities. The increases in the Special Revenue Funds are primarily associated with the EMS Alliance Model, and wages and benefits across various funds. The increase in the Enterprise Funds is associated with wages and benefits, cost increases to chemicals to treat water and wastewater, and debt payments. The Capital Improvements Program (CIP) includes an increase in Water and Wastewater project-related appropriations.

General Fund Revenues

The Fiscal Year 2025 Proposed General Fund revenue budget is $2.08 billion, which represents an increase of $61.2 million, or 3.0 percent, from the Fiscal Year 2024 Adopted Budget. General Fund revenues are comprised of four major revenue sources, and a series of other revenue sources, which are primarily generated by departments. The City's four major General Fund revenue sources are property tax, sales tax, transient occupancy tax (TOT), and franchise fees. These sources account for 72.0 percent of the Fiscal Year 2025 Proposed Budget for General Fund revenues and are projected to increase by $54.6 million, or 3.8 percent, from the Fiscal Year 2024 Adopted Budget. The increases in major General Fund revenues are primarily in property tax revenue of $48.8 million and franchise fee revenue of $13.4 million. Fiscal Year 2025 Proposed Budget revenues are based on projections included in the Fiscal Year 2024 Mid-Year Budget Monitoring Report (Mid-Year Report), and the most recent economic data available at the time of development.

In addition to increases in the major General Fund revenues, other revenue sources reflect a net increase of $6.6 million, or 1.1 percent. The increase in other revenues is associated with $13.5 million in transfers to the General Fund from the Concourse and Parking Garages Operating Fund, Community Equity Fund, Energy Independence Fund, Civil Penalties Fund, and Central Stores Fund; a $12.7 million increase in reimbursements from the Environmental Growth Funds to support eligible expenditures; $4.5 million in reimbursements for Employ and Empower Interns; $4.3 million from rents and concessions due to additional activity and rent revenue at Mission Bay hotels, Sea World, and City Pueblo Lands; and $3.3 million in additional TransNet and Gas Tax revenues. These increases are offset by a decrease of $52.1 million related to the use of one-time American Rescue Plan Act (ARPA) funds in Fiscal Year 2024.

General Fund Expenditures

The Fiscal Year 2025 Proposed Budget for General Fund expenditures is $2.15 billion, which represents an increase of $65.8 million, or 3.2 percent, from the Fiscal Year 2024 Adopted Budget. These expenditures are primarily supported by major General Fund revenue sources that include property tax, sales tax, transient occupancy tax, and franchise fees. The critical expenditure additions primarily maintain various services, support interns through the Employ and Empower Program, enhance homelessness services, and support new facilities. In addition to these adds, there are a number of reductions that were taken to balance the budget.

The Fiscal Year 2025 Proposed Budget prioritizes funding to maintain core service levels. Expanded services include additional homelessness services and the operations of new facilities.

The Fiscal Year 2025 Proposed Budget includes expenditure reductions to achieve a balanced budget for Fiscal Year 2025.

The Fiscal Year 2025 Proposed Budget continues to focus on the City’s goals and maintain the City’s core city services including: public safety, homelessness programs and services, and infrastructure maintenance. This balanced budget includes funding to maintain current services, utilizing one-time and ongoing resources. Based on current projections, balancing the General Fund budget in future years and obtaining a structurally balanced budget may require additional ongoing reductions, minimizing additions, and refraining from the addition of new programs unless additional dedicated ongoing funding sources are attained. Additional details are included throughout the budget document.

By Macy Meinhardt, Voice & Viewpoint Staff Writer

“Let’s make it clear we will not be pushed out. We demand a “People’s Budget,” attendees at the rally said.

Outside of San Diego City Hall amid a ten-plus hour budget hearing on May 1st, a crowd of community members gathered to express their deep frustrations over Mayor Todd Gloria’s proposed budget cuts.

Community members argue that the proposed cuts within the City’s $5.6 billion fiscal spending plan will exacerbate existing inequities for marginalized communities. The cuts to equity programs equate to $36 million which includes the shuttering of initiatives such as gang violence prevention, cannabis equity, and immigrant affairs. Many residents, particularly those “South of the 8” have expressed outrage, summing up their sentiment to: “Todd hates poor people.”

Almost everyone in attendance was fitted with a picket sign ranging from sayings such as “Invest in our community,” “Poor people are constituents too,” or “Todd the Fraud.”

A series of community members including former mayoral candidate Genevieve Jones Wright spoke at the May 1st rally, expressing opposition and endless commitment in the fight for equity within the City of San Diego.

“The communities in San Diego that are South of the 8 are already disinvested in, we already suffer from being under-resourced,” said Wright.

Right now the tone of Southeastern community members is hostile between their city leaders. Thousands of people are still displaced from the January flooding, and many believe the city’s historical disinvestment within District 4 is at fault for the devastation that occurred. Now to have programs –specifically designed and championed by their community– subject to defunding further twists the knife.

“Our newest residents deserve justice. After the catastrophic floods we saw this year the mayor should be putting more resources into infrastructure that addresses climate change and the impacts it has on low-income and BIPOC communities, not cutting,” said Keara O’ Laughlin, with Center for Policy Initiatives.

According to the office of the Independent Budget Analyst the exact breakdown of proposed cuts to equity related programs are as follows:

Climate equity fund: $8.5 million
Office of Immigrant Affairs: $562,000
Cannabis Social Equity Program: $417,000 (will also require the City to return $883,000 in grant funds to the state)
SD Access 4 All: $57,000
Community Equity Fund: $3.1 million
No Shots Fired Program: $250,000
Eviction Prevention Program: $3.2 million

Based on the IBA’s analysis, “it was known that the City would be facing difficult budget decisions, as we have been dealing with a structural deficit for some time,” said Charles Modica, who oversees the IBA department. The structural deficit— which is when a government spends more than it receives in taxes— amounts to $197.8 million for San Diego.

The City had been relying on a one time infusion of $299.7 million in federal American Rescue Plan ACT dollars to support operations over the last three years. “That ARPA money has now been exhausted, and the City is left with fewer resources to provide its services,” Modica writes in a statement.

Many of these equity centralized programs were new to the City, established to address the long ignored disparities, a lot of which stemmed from within District 4.

For example, the No Shots Fired Program, launched by former District 4 Councilmember in 2021, was a collaborative effort between the City’s Gang Commission that focused on gun violence in communities of concern.

“After years of disinvestment and the corresponding impacts of community violence, the No Shots Fired Program is a step in the right direction to provide a policy solution that quells violence, promotes economic justice, and improves community policing relationships,” said mayor Todd Gloria, in his 2021 announcement of the program.

However, now on the verge of cuts, “I just want to ask Todd Gloria to not let this opportunity that combines positive intent from us all to slip through the cracks,” said D’Andre Brooks, Chair of the City’s Commission on Gang Prevention and Intervention.

Other commitments facing potential backtracks are within the climate action, and community equity funds.

The Climate Equity Fund, also established in 2021, was dedicated to address climate disparities in communities on the front lines of climate change.

Direct examples of this are the flood. “This is a result of systematic disinvestment in our communities where we are ignored, or we are neglected, and that was the result of what we saw on January 22.” said Frances Yasmeen, a board member of Activist San Diego.

“His actions still don’t make sense because he’s cutting funding to our neighborhoods,” said Yasmeen, in regards to the elimination of the $8.5 million climate equity fund.

The $3.1 million community equity fund is also proposed to be drained and reabsorbed into the general fund budget.

Established in 2021, the Community Equity Fund was initially anticipated to fund 8-10 organizations to create equity focused outcomes in various areas such as employment, childcare, and education, the IBA’s report explains.

In short, the money was never spent on equity efforts within the community, and now, the proposed budget calls for the unused $3.1 million plus interest earned to be swept back into the General Fund.

In a statement on the “Protecting out Progress” budget, Mayor Gloria explains:

“These reductions are difficult, but necessary to preserve core services and are anticipated to be one-time adjustments,” said Gloria. “With revenue down and costs rising, we had to make difficult choices in order to sustain funding for key priorities: addressing homelessness and building more housing; fixing roads and other critical infrastructure; and keeping you safe.”

Other reductions discussed at the press conference were the closure of teen drop in centers in low income commutes, elimination of the tenant protection program, cannabis equity and the BIPOC criminalization of marijuana, and Office of Immigrant affairs.

Overall, the string of tension is tightening with almost every move the City makes when it comes to quality and quantity of equity. The sentiment of Todd Gloria disfavoring people south of the 8 was made clear by community activist Lanell Brown, President of Giving Hands.

“When are you going to help us Todd? When are you going to show some love for people on this side? We want to live, we want our kids to grow up and be happy just like those kids. We’re not asking for anything that you’re not already doing somebody else, we want it just like they got it–give it to us!”

To read the full outline of the IBA’s analysis on the proposed FY 2025 budget click: HERE

overview of the Independent Budget Analyst's (IBA) review and analysis of the Mayor's Fiscal Year 2025 Proposed Budget for the City of San Diego.

Key points include:

- The City Council has the authority to modify the Mayor's Proposed Budget before adopting the final budget in June 2024.

- Preparing a balanced FY 2025 budget that avoids significant service cuts was expected to be challenging after exhausting $299.7 million in one-time federal American Rescue Plan Act funds in prior years.

- The $5.65 billion Proposed Budget contains limited additions and proposes reductions to some programs established in recent years. It relies on many one-time deficit mitigation strategies and remains structurally imbalanced.

- Major General Fund revenues of $1.50 billion are projected to see moderate growth. Expenditures are increasing $65.8 million, largely due to employee compensation and pension costs.

- The budget was balanced using measures like excess equity, deferring reserve contributions, using Infrastructure Funds for operations, reducing programs, and more. Deeper cuts will be needed in the future without new revenues.

- Key issues discussed include Climate Action Plan funding gaps, unfunded Council priorities, equity impacts of reductions, homelessness funding changes, and infrastructure funding challenges.

The IBA will continue reviewing the budget and recommending potential revisions before the final budget is adopted in June.

Revenues

The Fiscal Year 2025 Proposed Budget for the City of San Diego's General Fund includes approximately $2.08 billion in revenues, a 3.0% increase from FY 2024. The four largest General Fund revenues – property tax, sales tax, transient occupancy tax (TOT), and franchise fees – total $1.50 billion and account for 72% of all General Fund revenues. Key points include:

- Property tax revenue is projected at $807.4 million, a 6.4% increase from FY 2024, based on trends in assessed property values and home sales. The growth rate was lowered from initial projections.

- Sales tax revenue is projected at $392.7 million, a 2.2% decrease from FY 2024, reflecting slowed consumer spending. The 4.6% growth rate applied is higher than recent years but aligns with consultant projections.

- TOT revenue allocated to the General Fund is projected at $173.9 million, a 0.8% increase, as hotel demand and revenues are expected to normalize after pandemic volatility.

- Franchise fees are projected at $121.9 million, a 12.4% increase, largely driven by increases in the SDG&E franchise fee from higher energy rates.

Other notable revenues discussed include lease and concession revenues of $70.9 million and Cannabis Business Tax revenue of $19.4 million, which decreased by 9.3%. Overall, the revenue projections appear reasonable based on current economic indicators and historical trends.

Expenditures

The Fiscal Year 2025 Proposed Budget for the City of San Diego includes $2.15 billion in General Fund expenditures, a 3.2% increase of $65.8 million from FY 2024. Key changes include:

Personnel Expenditures (PE) are increasing by $91.4 million:

- $35.5 million for previously negotiated compensation increases
- $29.9 million increase in pension payment (ADC)
- $20.0 million for net departmental position changes, largely due to new intern positions
- $10.9 million estimated for public safety employee compensation increases being negotiated
- $10.8 million decrease in budgeted PE savings
- Offset by $11.0 million decrease in retiree health (OPEB) contributions

Non-Personnel Expenditures (NPE) have a net decrease of $25.6 million:

- Notable NPE increases include

$11.6 million for homeless shelters/programs,
$7.6 million for debt financing,
$4.9 million for public liability,
$4.7 million for elections,
$3.2 million for fleet costs, and
$3.2 million for facility leases

- However, these are more than offset by decreases from the removal of $38.5 million in one-time costs from FY 2024

The largest departmental PE increases are in Parks & Recreation, Transportation, Planning, and Fire-Rescue. Many other specific expenditure changes are discussed in the relevant department review sections of the report. Overall, personnel costs are increasing while non-personnel costs decrease, for a total General Fund expenditure increase of 3.2%.

Search This Blog

County and City of San Diego California