Morning Report: Council Bypasses a Whole Lotta Cuts - For Now? | Voice of San Diego

San Diego City Council Defies Mayor, Approves $6 Billion Budget Restoring Threatened Cuts

Council votes 7-2 to fund libraries, parks and equity office despite Gloria's warnings about fiscal responsibility

The San Diego City Council delivered a sharp rebuke to Mayor Todd Gloria Tuesday, voting 7-2 to approve a $6 billion budget that restores millions in threatened cuts and reinstates key positions the mayor had eliminated, setting up a potential showdown as the new fiscal year approaches.

The budget for the 2025-26 fiscal year beginning July 1 is 3.4% larger than this year's $5.8 billion spending plan. It avoids many of the cuts Gloria had proposed to library and lake hours, recreation centers and park restrooms, while also reinstating the chief operating officer position that Gloria abruptly eliminated earlier this year, funding a safe parking lot for homeless families at Central Elementary School, and restoring the Office of Race and Equity.

The council's actions came after a last-minute push by councilmembers who collectively identified additional projected revenues to fund the restored services, directly challenging the mayor's priorities and fiscal approach. Budget Committee Chair Henry Foster III led the coalition effort to restore funding, noting the importance of protecting vulnerable communities.

"It has been said throughout this process that this budget should not be balanced on the backs of those who are less fortunate," Foster said in previous budget discussions. "That's why my colleagues and I have fought hard to make sure that this budget is balanced and provides for the needs of all communities."

Mayor Signals Potential Veto Battle

Gloria's office wasted little time expressing displeasure with the council's amendments, issuing a statement late Tuesday criticizing the "tens of millions of dollars in new spending and changes" that concerned both city budget analysts and attorneys.

"Over the next several days, the mayor and his team will closely review the Council's amendments to ensure the final budget meets the level of fiscal responsibility this moment demands, especially given the current economic uncertainty and global instability," spokesperson Rachel Laing said.

In his final proposed budget released in May, Gloria had defended his approach: "The cuts we were forced to make to balance the budget are not what any of us want, but we've worked within our means to create a responsible, strategic, and balanced spending plan that prioritizes keeping San Diegans safe, fixing our roads and critical infrastructure, and reducing homelessness."

The statement hints that Gloria may exercise his line-item veto power when the budget reaches his desk. The mayor has five days to either sign the budget or issue vetoes, but the 7-2 council vote suggests any vetoes would likely be overridden, as only six votes are needed to overturn mayoral actions.

Budget Relies on Unproven Revenue Sources

The budget balances through a series of untested revenue streams that may face legal and practical hurdles. Councilman Henry Foster III, the budget committee chair, outlined the new funding sources: early debt payoffs, not filling vacant management positions, charging non-residents to park at Balboa Park and the San Diego Zoo, allowing digital advertising and billboards, and increasing credit card fees for city business.

But the feasibility of these revenue sources remains uncertain. Deputy City Attorney Leslie Fitzgerald told councilmembers her office was still investigating the legality of the parking and advertising proposals, which could prove problematic or block implementation entirely.

The timeline is also aggressive. Councilman Stephen Whitburn noted that parking fees could potentially be implemented in September — "just 12 weeks away" — but haven't even been approved by the council yet. Whitburn said he would oppose charging for parking unless a portion of Balboa Park remained free, citing concerns about deterring tourism.

Charles Modica, the city's independent budget analyst, repeatedly warned councilmembers that the budget was already relying on "optimistic figures" even before Foster's modifications. Adding speculative revenue sources, he said, would expose the city to significant risk and potentially force later cuts or require tapping into city reserves.

"I hope all the sources of revenue come to fruition," Modica said. "If they come to fruition, we have a balanced budget."

If the projected revenues fail to materialize, Modica warned, both the council and mayor could be forced to make difficult cuts again soon. He also cautioned that economic headwinds could create additional challenges even if the various revenue sources exceed projections.

Split Vote Reflects Fiscal and Infrastructure Concerns

Not all councilmembers were convinced by their colleagues' revenue projections. Councilmember Jennifer Campbell voted against the budget, saying she wasn't convinced the city could actually afford to pay for all the items in Foster's modifications.

Councilmember Vivian Moreno also opposed the plan, focusing on what she saw as inadequate funding for stormwater infrastructure. Her opposition stemmed from ongoing concerns about channel and flood management following the devastating January 2024 floods that left hundreds homeless when stormwater systems backed up.

"The funding was always available for these programs, we just had to prioritize it," Moreno said, though she thanked colleagues for restoring youth programs.

Despite having reservations about how the city would afford the modifications, Councilman Raul Campillo ultimately voted to approve the budget, celebrating the restoration of lake and reservoir access. "The full restoration of Lake Murray access is a win for the thousands of San Diegans who made their voices heard loud and clear," he said, citing over 8,000 petition signatures and hundreds of public testimony speakers.

The budget dispute reflects broader tensions between the mayor and council over fiscal policy and spending priorities. Gloria announced in December that the city was facing a $258 million budget deficit amid declining growth in property, hotel room and sales taxes. The deficit was worsened by voters' rejection in November of a proposed 1% sales tax increase that would have raised $400 million annually.

Gloria has consistently advocated for more conservative budgeting approaches, warning councilmembers about past consequences when the city faced similar deficits. During his previous tenure on the council, library hours were cut and fire stations were "browned out," leading to slower response times and what Gloria said were preventable deaths.

"I don't want you to have the same regrets I had when I served," the mayor told councilmembers.

What's Next

State law requires a final city budget by June 15, adding urgency to resolve the dispute. If Gloria issues line-item vetoes, the council could vote to override them as early as next week. The current 7-2 majority suggests councilmembers have the votes needed to prevail in any veto override vote.

Gloria has five business days to veto or modify any line item approved by the council, but any modifications may only address changes the council made to his May budget revisions on Tuesday.

While the council restored many services, some cuts remain. Library hours on Sundays will still be eliminated, and certain executive positions won't be filled. The council managed to restore Monday library hours at select branches — at least one in each council district — but couldn't find funding to maintain full weekend operations.

In an unusual move, the council transferred the city's Office of Race & Equity to operate under Modica's independent budget analyst office. Modica acknowledged he hadn't typically been tasked with running departments previously under administrative purview, but said he would follow the council's lead.

Tuesday's meeting also highlighted growing concerns about police surveillance technology. Several activists demanded transparency about police spending and urged the city to step away from automated license plate readers, particularly following a recent ICE raid in South Park. Councilman Stephen Whitburn, who previously supported the technology, said the political climate has changed and asked for the city to revisit the contract over concerns it could aid federal immigration enforcement.

The budget process also reflected broader advocacy efforts throughout the community. Councilman Sean Elo-Rivera had previously rallied with nonprofit organizations at Jeremy Henwood Memorial Park to demand restoration of funding to libraries and recreation centers.

"Cutting library hours, shrinking youth programs and defunding recreation centers might look like math on a spreadsheet, but in real life, it means fewer safe spaces for kids, fewer resources for families and fewer opportunities for our neighborhoods," Elo-Rivera said at the May rally. "San Diego deserves better — and we must say no to across-the-board cuts that fail to recognize the vulnerability in our communities."

The outcome will determine not only the city's spending priorities for the coming year but also set the tone for future budget negotiations. With the city's structural deficit continuing and economic uncertainty persisting, Council President Pro Tempore Kent Lee acknowledged more difficult decisions lie ahead.

"I believe this is a fiscally responsible item before us," Lee said. "But there is more work to do next year."

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Sources

Halverstadt, Lisa, Jakob McWhinney, and Tessa Balc. "Morning Report: Council Bypasses a Whole Lotta Cuts – For Now?" Voice of San Diego, June 11, 2025. https://voiceofsandiego.org/2025/06/11/morning-report-council-bypasses-a-whole-lotta-cuts-for-now/

Murray, Ryan. "City Council restores funding for recreation centers, some libraries on Mondays." NBC San Diego, June 10, 2025. https://www.nbcsandiego.com/news/local/city-council-decision-fiscal-year-2026-budget-deficit/3844266/

City of San Diego, Mayor's Office. "Mayor Gloria Releases Final Proposed Budget for Fiscal Year 2026." Press Release, May 14, 2025. https://www.sandiego.gov/mayor/mayor-gloria-releases-final-proposed-budget-fiscal-year-2026

Singhai, Swasti. "Despite deficit fears, City Council restores funding for parks, libraries in final budget." Times of San Diego, June 11, 2025. https://timesofsandiego.com/politics/2025/06/10/city-council-restores-popular-programs-in-26-budget-despite-deficit/

Keatts, Andrew. "San Diego City Council reaches budget deal that spares controversial parks and rec center cuts." Axios San Diego, June 11, 2025. https://www.axios.com/local/san-diego/2025/06/11/san-diego-budget-spares-libraries-parks

Bowen, Andrew. "Mayor Todd Gloria restores some funding to police, fire, animal services in revised budget proposal." KPBS, May 14, 2025. https://www.kpbs.org/news/politics/2025/05/14/mayor-todd-gloria-restores-some-funding-to-police-fire-animal-services-in-revised-budget-proposal

Morning Report: Council Bypasses a Whole Lotta Cuts - For Now? | Voice of San Diego