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City officials and expert worry approved budget is overly optimistic

City officials and expert worry approved budget is overly optimistic
City officials and expert worry approved budget is overly optimistic
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SAN DIEGO (KGTV) — The San Diego City Council approved a budget Tuesday that restored several public services after thousands of residents rallied against proposed cuts.

From Torrey Pines and Carmel Valley communities fighting to keep their police station to residents distributing fliers around Lake Murray to maintain weekday public access, San Diegans made their voices heard.

"I think this was the most organized I've ever seen the community coming out for things," Councilmember Raul Campillo said.

The approved budget restores hours of operation to recreation centers and some libraries, maintains weekday access to Lake Murray and the Miramar Reservoir and reopens beach public restrooms, among other services. However, funding for these restored services relies on revenue sources that aren't guaranteed.

"I don't think they're unrealistic. They're optimistic. The city made some optimistic decisions going forward," San Diego State University political science professor Brian Adams said.

Adams argues that with a $258 million budget deficit, the city should have been more conservative in its spending approach.

"I think the council was more risky with their projections. They're making certain assumptions about revenue being generated that may be true, but it may not," Adams said.

The council is counting on more than $11.5 million from parking fees at Balboa Park and the San Diego Zoo, digital billboard advertising and credit card transaction fees. These revenue-generating changes still need approval later this year.

The budget also depends on leaving certain vacant city positions unfilled.

"If it doesn't turn out, then you're in a position where the city would have to make mid-year budget cuts, or take money from the reserves or something along those lines," Adams said.

Adams notes that a potential recession could seriously impact sales tax revenue for the city, further complicating the financial outlook. Campillo remains confident in the council's budgetary decisions.

"Every year the budget comes in maybe a percent below or above projections. Every single component we put into the budget is based on justifiable evidence," Campillo said.

Mayor Todd Gloria has until next week to sign the budget into law or veto certain parts.

With regard to the modifications, a representative from Gloria's office sent ABC 10News this statement:

“Last month, Mayor Gloria presented the City Council with a proposed budget that was responsible, strategic, and balanced. Today, the Council added tens of millions of dollars in new spending and changes, many of which raised concerns from both the Independent Budget Analyst and the City Attorney’s Office.

"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. As always, San Diegans can count on the Mayor to sign a budget that is balanced, fiscally sound, and workable for our city.”

The City's Independent Budget Analyst raised concerns about the feasibility of these revenue sources, saying during the meeting: "I do want to be clear that we will be forced to tap into reserves or have cuts in the middle of the year. As you're all aware, cuts are very, very difficult."