SAN DIEGO (KGTV) - The San Diego City Council held its first public hearing on the city's financial outlook for the 2026-2027 fiscal year budget, kicking off what leaders are calling a challenging road ahead.
The projected shortfall stands at around $120 million. While that gap is lower than last year's $258 million deficit, city leaders say the impact will still be felt across departments.
Independent Budget Analyst Charles Modica said cuts will be necessary to meet the city's legal obligation to balance its budget.
"Cuts are not easy; it gives me absolute no pleasure to say that they are required, but by law, the city's budgets need to be balanced, and we cannot spend money that we do not have," Modica said.
Councilmembers made it clear that staffing cuts, reduced expenses, and city services are all on the table.
Councilmember Henry L. Foster III said cuts are coming, but the focus will be on protecting essential services.
"Let me be clear, there will be cuts as we approach the FY2027 budget," Foster said. "Our goal must be to preserve core services and ensure we maintain clean and safe neighborhoods."
Residents showed up for public comment, weighing in on what they believe should be prioritized, including libraries.
"The fact that the mayor keeps coming back time and again to take money from already too small budgets is infuriating. I cannot accept that there aren't other places to look," resident Pat Wilson said.
From public safety to infrastructure and neighborhood services, residents said those areas need to be funded.
"Before raising taxes, cutting services, or approving new programs, show the public exactly where the city stands," one resident said.
Mayor Todd Gloria also reaffirmed his commitment to closing the deficit, saying in a statement: "Yes, our city budget is under pressure, but it is manageable with disciplined action and clear priorities."
City leaders say public input will play a key role as the mayor prepares his proposed budget in the coming months. More public hearings are planned, with the next one taking place March 10.
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