Gloria, council agree to a $2.15 billion budget, with last-minute deals on homelessness, flood aid and more
The final budget reverses many cuts the mayor proposed in April that critics said would have disproportionately impacted low-income neighborhoods, homeless San Diegans and people of color San Diego City Council members unanimously approved a $2.15 billion budget compromise, which includes $6.1 million to replace the city's Golden Hall shelter, which is closing soon. The compromise includes additional funds for homeless programs, pothole repairs, small business aid, and flood victims. The budget reverses many cuts proposed by Mayor Todd Gloria in April that critics claimed would have negatively impacted low-income neighborhoods, homeless San Diegans and people of color. The council also allocated $750,000 for a homeless outreach program run by the Housing Commission, which Lisa Jones, CEO of the commission, said the additions will make a significant difference.
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The city’s Golden Hall shelter is closing soon, but a new fiscal 2025 budget compromise provides $6.1 million to replace it.
New money for homelessness programs, pothole repairs, small business aid and flood victims are key elements of a last-minute budget compromise San Diego City Council members unanimously approved Tuesday.
Mayor Todd Gloria said shortly after the council’s vote that he would sign the $2.15 billion spending plan without any changes. The budget covers the new fiscal year that starts July 1.
The final budget reverses many cuts proposed by the mayor in April that critics said would have disproportionately impacted low-income neighborhoods, homeless San Diegans and people of color.
That includes restoring $3.1 million for victims of the Jan. 22 floods, $1 million for youth drop-in centers and $5.2 million for rental subsidies that can help prevent homelessness.
“These changes are intended to preserve programs that are proven to work, programs that hundreds of thousands of San Diegans are relying on this very moment, and programs people would immediately feel the impacts from if funding were to be reduced or stopped,” said Councilmember Kent Lee, chair of the council’s budget committee.
Council members focused primarily on homelessness Tuesday, providing $6.1 million to replace two soon-to-close shelters, the 102-bed Paul Mirabile shelter in the East Village and 264-bed Golden Hall downtown.
“There is over $6 million available for the purpose of new or replacement emergency homeless shelters, something that we have all identified as a significant need,” Lee said.
The council also earmarked $6 million in federal funds for renovations at a new shelter the mayor has proposed at Kettner Boulevard and Vine Street near San Diego International Airport.
But that money is contingent on the council eventually approving that controversial project. If that doesn’t happen, the money would go to the Housing Commission to fund construction of subsidized housing.
The last-minute additions include $750,000 for a homeless outreach program run by the Housing Commission to get people off the streets and into housing.
Lisa Jones, chief executive of the Housing Commission, said the additions will make a big difference.
“Programs that we think are incredibly successful and impactful to the city and the city’s homelessness population are restored and enhanced,” she said of the final budget.
Jones said her agency will have more resources to help people in danger of becoming homeless with money for back rent or other help.
She also praised the outreach team.
“This is a small but mighty team that focuses on some of the most vulnerable on our city streets,” she said. “It has an incredibly high success rate.”
Council President Sean Elo-Rivera said he was pleased the final budget didn’t hurt low-income San Diegans nearly as much as the mayor’s first proposal in April.
“Just because it’s a tough budget season doesn’t mean it needs to be the toughest for those that have the least,” he said.
The mayor said the final budget meshes with his priorities despite Tuesday’s changes.
“This budget continues our efforts to address homelessness, fix roads, fund police and fire-rescue services to protect our communities, and keep parks and libraries fully operational,” he said.
Other last-minute additions include $1.1 million for small business aid, $5.9 million for climate equity projects, $800,000 to make dangerous intersections safer, $500,000 to upgrade the Southcrest Recreation Center and $120,000 for a long-awaited new lifeguard tower in Pacific Beach.
The package also includes a $450,000 increase in arts funding and $100,000 for each of the city’s nine council districts to fund community projects and programs.
The council also added $174,000 for an additional pothole repair truck recommended in a recent city audit, and $91,000 for case management software at a city facility focused on domestic violence.
While there wasn’t support for reversing the mayor’s cut to the city’s fledgling cannabis equity program, Councilmember Henry Foster said he and the mayor will propose a cannabis equity policy soon.
The $5.9 million in climate equity projects in the compromise proposal includes $3.9 million for Grove Neighborhood Park, $800,000 for upgraded sports courts in Encanto and Emerald Hills and $870,000 for streetlights in Council Districts 4, 7 and 8.
There is also $250,00 for streetlights in University City and $1 million for Jeremy Henwood Memorial Park in City Heights.
The council didn’t make any changes to the general structure of Gloria’s proposed budget, which avoids deep cuts with short-term fixes.
Most of the gaping deficit won’t be closed with actual cuts. Instead, the city is making one-time moves like canceling $30 million in scheduled reserve contributions and borrowing $25 million to fund infrastructure projects instead of paying for them up front.
The mayor says his approach makes sense because he doesn’t want to reverse progress on issues like homelessness and street paving.
But Charles Modica, the city’s independent budget analyst, said next year’s budget cycle will be ugly unless city voters approve proposed new revenues streams likely to appear on the November ballot.
Those include a one-cent sales tax hike and a parcel tax to fund flood prevention projects.
“The city lacks the ongoing resources necessary to support its current operations and to address its growing infrastructure backlog,” Modica said. “If neither is successful, that infrastructure backlog will continue to grow and more severe operational cuts and ongoing structural reductions will be needed.”
In addition to the $2.15 billion general fund, the council approved separate budgets for capital projects and the city’s sewer and water divisions.
All told, the city’s budget for the new fiscal year will be $5.8 billion.
Topik: Social Issues, Homelessness