San Diego to use $10.1M in reserves to balance current fiscal year's budget | KPBS Public Media

San Diego Faces Record Budget Crisis, Forced to Tap Savings as Pension Costs Skyrocket City grapples with $258 million deficit, proposes sweeping cuts to libraries, recreation centers, and essential services while pension payments reach unprecedented $533 million By [Reporter Name] - May 30, 2025 SAN DIEGO — The City of San Diego is confronting its most severe budget crisis in years, facing a projected $258 million deficit for fiscal year 2026 that has forced Mayor Todd Gloria to propose sweeping cuts to city services and tap into emergency reserves for the first time in recent memory. The unprecedented financial strain comes as the city's mandatory pension payment has reached a record-breaking $533.2 million — a staggering increase that accounts for nearly half of the entire budget deficit and represents the first time San Diego's annual pension obligation has surpassed $500 million. Record Pension Costs Drive Crisis The city's pension board unanimously approved Frid...