San Diego Mayor Todd Gloria revealed significant budget cuts on Tuesday aimed at addressing an approximately $258 million deficit anticipated for the 2025/2026 fiscal year. During a news conference at City Hall, Gloria outlined personnel changes expected to save the city $5 million, or about 2% of the deficit.
Key among the reductions is the elimination of the city’s Chief Operating Officer position held by Eric Dargan, as well as the consolidation of several city offices and departments. “The elimination of 31 positions will net an annual savings of over $5 million to taxpayers,” Gloria stated.
Gloria’s office will assume the responsibilities previously held by the COO, while several departments, including the Sustainability and Mobility Department, the Department of Race and Equity, the Office of Child and Youth Success, and the Department of Cultural Affairs, will be consolidated into various other departments to streamline operations.
Dargan’s salary package was reported at $448,812, making him the only employee officially laid off as part of Tuesday’s budget strategy, while an additional 30 vacant positions across various departments will remain unfilled.
The mayor’s announcement follows the recent failure of Measure E, a proposed one-cent sales tax increase that could have mitigated the impending deficit. Gloria addressed the city’s financial challenges in his State of the City speech on January 15, focusing on the severity of the situation, which represents around 12% of the city’s total spending.
To tackle the budget shortfall, the city has already increased parking rates and is considering extending parking meter hours, potentially raising an estimated $40 million. Additionally, changes to residential trash pickup fees and proposed increases in park rental and service fees could collectively add $60 million to the city’s revenue. Despite these adjustments, Gloria acknowledged that any additional funding from fees is aimed at offsetting current losses rather than generating profit. Gloria said:
Our goal is to make tough choices now to ensure we can maintain the essential services San Diegans rely on.
During the conference, Gloria fielded questions regarding future cuts, stating, “Everything is on the table. We can leave no stone unturned.” He reassured residents that the approach to solving the deficit involves careful consideration and not merely a series of cuts.
Looking ahead, Gloria mentioned a potential tourism tax increase that has yet to be finalized, which he hopes will contribute additional funds to the city’s budget.
As the city prepares for budget hearings in May, Gloria emphasized the ongoing need for fiscal prudence, saying, “There’s a lot between now and final budget adoption in June that we’re going to have to go through.”
The budget changes announced on Tuesday will take effect immediately, as San Diego works to navigate these challenging financial waters.
