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San Diego faces a $120 million budget deficit as a new financial report warns of unsustainable spending

San Diego faces a $120M deficit as new report warns of unsustainable spending
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SAN DIEGO (KGTV) — A new financial report from the San Diego County Taxpayers Association warns that the City of San Diego is on an unsustainable financial path as it faces a $120 million budget deficit.

With the city budget set to be released on Wednesday, city leaders say they are already making tough decisions to address rising costs, growing debt, and aging infrastructure.

"There’s a disconnect between how much money is coming in and how and how much money is being spent," Mark Kersey said.

Kersey, president and CEO of the Taxpayers Association, said the report looks at more than a decade of city finances dating back to 2011. The analysis found the city is hiring people faster than the population has grown, including a large number of middle management positions.

"The city has been hiring middle managers who typically make well under the 6 figures at a very alarming clip a 461% increase over the last 15 years it’s just not sustainable," Kersey said.

In a recent statement, Mayor Todd Gloria said the city has already reduced more than $100 million in spending by cutting management layers, consolidating departments, and lowering overhead costs. Gloria said his upcoming budget focuses on public safety, infrastructure, and homelessness.

"Public safety is something everyone values it’s kind of the core function of local government and so no one wants to see that cut, similarly with infrastructure you drive around town the conditions of our roads are not good the leadership recognizes that paving roads is something people want to see but what that means is everything else is on the chopping block," Kersey said.

Kersey warned that residents will feel the impacts and will not be happy with cuts to services they rely on as the mayor makes tough decisions to get the city back on track.

"What we’re going to see when the mayor releases the budget tomorrow is a lot of cuts, there’s going to be a lot of cuts to things like libraries and rec center hours, and things like that and people are going to be angry about it," Kersey said.

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