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San Diego Confronts $258 Million Budget Deficit: Potential Cuts Ahead

Jacob Shelton February 11, 2025

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City Council Building

San Diego is grappling with a significant $258 million budget deficit for the upcoming fiscal year. According to Charles Modica, the city’s budget analyst, addressing this shortfall will require difficult decisions, as there are no straightforward solutions available. He explained:

It’s really come to a head. We don’t have the resources to continue to operate the way we have over the past several years. Now we are struck with needing to actually buckle down and make some structural changes that will actually get us there.

The city’s five-year financial outlook indicates that, without new revenue sources, substantial deficits are anticipated until 2030. In his recent State of the City address, Mayor Todd Gloria highlighted the severity of the situation, noting that the current deficit follows a $170 million shortfall from the previous year, which was managed through precise cuts and one-time funding sources. San Diego City Council President Joe LaCava noted:

There’s going to be a lot of pressure to increase revenue, but that can have an impact on the average San Diegan as well. So how do we navigate that delicate balance.

To mitigate the deficit, city officials are considering various measures, including potential cutbacks in essential services. Discussions have already begun regarding funding for fire services and the possibility of reduced budgets for the San Diego Police Department, which could lead to slower response times.

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