People sit during public comment at San Diego council chambers on May 4, 2026. (Crystal Niebla/inewsource)

Why this matters

For the second consecutive year, San Diego faces a massive budget deficit that could disrupt daily lives and city operations.

San Diego councilmembers on Monday kicked off the first of five grueling days this week discussing the mayor’s budget proposal — this time with an added warning from analysts of “equity implications” that would be felt by some of the city’s most vulnerable communities.

The Office of the Independent Budget Analyst, tasked with reviewing budget proposals and advising the City Council, released a 312-page report last week that analyzed Mayor Todd Gloria’s proposed spending plan. San Diego faces a $146 million budget deficit, and Gloria has proposed significant cuts that include layoffs and reductions to arts, recreation and library funding.

For the first time, the city’s Budget Review Committee heard separate presentations by the IBA’s new Division of Race and Equity. The team reviewed the budget and considered “progress towards achieving key performance indicators and the actions needed to close disparities, gaps, and deficiencies.” 

The report said some of the proposed cuts could especially impact largely lower-income, racially diverse areas such as southeast San Diego, San Ysidro and Barrio Logan.

Race and equity staff pointed out that the mayor’s budget maintains funding for the city’s free public WiFi and housing instability or gang prevention programs. But they also pointed to proposed cuts of library personnel and recreation center hours that would directly impact youth and families negatively.

The race and equity division came after Gloria first consolidated the office into the Human Resources Department and then the council voted to move it to the IBA last year. It was first established as a standalone department that had previously reported to the mayor’s office. 

Kim Desmond headed that department. She then left for an out-of-state job before returning last year to serve as the director of the division.

Desmond told inewsource in a previous interview that the public will now get increased transparency of her team’s findings. She previously often consulted with the mayor’s policy team, “but now those things go to council in a very public fashion,” she said.

While Gloria’s budget proposes major cuts, it does call for additional funding for some departments, including $15 million more for police and another $12.7 million for city maintenance vehicles. It also includes a $12.5 million increase toward debt payments for capital infrastructure projects.

The IBA presentation said a “different combination of resources and mitigations could be considered, although service level reductions are unavoidable.”

Dozens of people filled council chambers on Monday to rebuke Gloria’s budget. The hearing lasted nearly 13 hours and set aside an evening portion dedicated to public comments.

Many who spoke urged the council to restore funding, including for library services, recreation centers, a team that helps install bike lanes, and $9.6 million in arts and culture grants meant for nonprofit organizations. 

They also asked the council to undo increases to the San Diego Police Department and end a contract with Flock Safety, the company behind the city’s automatic license plate readers.

Several held signs calling for reinvestment in youth services. 

“When I came out here with my parents, there was a youth drop-in center, and as soon as that youth drop-in center was closed, I joined the gang,” Melissa Hernandez, founder of Phatcamp, a nonprofit in southeast San Diego offering a youth center. “This is just absurd that we have to keep coming up here begging for scraps.”

At the end of the hearing, councilmembers reflected on what they heard throughout the day.

“It feels like a bit of deja vu because whether we’ve had good or bad budget years, these are the same conversations we continue to seem to have,” Councilmember Kent Lee said in his closing statements that night.

The full council will continue to hold public hearings until Friday. The meetings start at 9 a.m.

After this, Gloria will release his budget revision on May 13. The next opportunity for the public to give comments at an evening session is May 18. 

Every year, the mayor releases a preliminary budget, and the IBA office releases its first round of evaluation of that proposal. The council has ultimate approval over the budget. 

Type of Content

News: Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources.

Crystal Niebla joined inewsource in June 2022 focused on infrastructure and government accountability in the San Diego region. Today, she writes hyperlocal stories about communities in the South Bay. Her position is partly funded by Report for America, a national program that supports local journalists. At...