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150 vulnerable Californians could be forced back on streets after budget bombshell

Jacob Shelton April 16, 2025

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(Image Credit: IMAGN)

Miguel Colon, 25, homeless in Brockton most of his life, huddles with companions and tries to cover up as much as possible to stay warm while sheltering under the Cresent Street Bridge in downtown Brockton on Tuesday, Jan. 14, 2025. Colon shared his thoughts of the mayoral veto of homeless camping and loitering restrictions that was overridden by the Brockton City Council the previous day.

San Diego, California – As San Diego grapples with a worsening homelessness crisis, Mayor Todd Gloria has proposed pulling city funding from the Rosecrans Shelter — a unique facility that provides beds, meals, and behavioral health care for 150 unhoused residents with mental illness.

The city has contributed $4.5 million annually since 2022 to operate the Midway District shelter, which sits behind the San Diego County Psychiatric Hospital. The proposed budget cut, aimed at closing a $240 million city deficit, caught local nonprofit leaders and shelter staff off guard.

“This is a tragic step backward,” said Lucky Duck Foundation CEO Drew Moser, whose organization donated the tent structure for the shelter. “The thought of it going away is completely unacceptable.”

The shelter is a rare example of a public-private partnership. The city pays for operations, the county provides land, utilities, and behavioral health services, and nonprofits like Alpha Project manage daily operations. However, with the city’s fiscal pressures mounting and the county planning to demolish the nearby Health Services Complex by 2026, Mayor Gloria said now may be the time to exit the agreement.

Critics argue the move shifts responsibility rather than solves it. “This is typical of the County — pass the buck and abdicate their responsibility on homelessness and mental health,” said a statement from the mayor’s office. County officials pushed back, saying the city is avoiding a long-term commitment and that temporary utility lines could be installed to keep the shelter running past the demolition.

Supervisor Terra Lawson-Remer called on philanthropic groups to bridge the funding gap while negotiations continue. “For the County to take over full shelter operations inside the City of San Diego would be akin to the County running City libraries,” she said in a statement.

The city has promised that if the shelter does close, no current residents will be left on the street. But with the agreement set to expire in July, time is running out.

Mayor Gloria emphasized that the proposal is still under review. “This is intended to start a conversation,” he said, noting that a revised budget will be submitted in May. The City Council is expected to vote on a final plan in June.

Meanwhile, the fate of 150 of San Diego’s most vulnerable residents — and a vital shelter — remains uncertain.

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