The draft Fiscal Year 2026 budget is a direct response to the largest structural deficit San Diego has faced in over a decade—$258 million. While the choices it contains are tough, they’re grounded in fiscal responsibility and a clear vision for our city’s priorities: keeping you safe, fixing critical infrastructure like roads and our stormwater system, and reducing homelessness. 

As required by our City Charter, the budget must be balanced. We cannot run a deficit like the federal government.  

To that end, and with the $258 structural deficit facing the City, my draft budget reflects hundreds of millions of dollars in reductions I didn’t want to make—but had to in order to bring expenses in line with revenues.  

These reductions were made after a careful review of every option and with the goal of preserving core services that residents depend on. 

Some service reductions are unavoidable. But thanks to $172 million in new revenues — through updated fees, parking reforms, and voter-approved initiatives like Measures B and C — we avoided even more drastic cuts. These new revenues represent nearly half the solution to the deficit, but some of them still require Council adoption. If they’re blocked, expect deeper cuts in the final budget. 

I’ve listened closely during budget hearings and have incorporated feedback from the public into my final proposed budget, which I’ll release on Wednesday. After that, the budget is in the City Council’s hands. While they have the power to change the budget and restore some of the cuts, everything that’s added back in must have a corresponding cut from elsewhere in the operation — or new revenue source. That’s how balancing a budget works.

There are no easy answers. But there is a responsible path forward, and I look forward to working constructively with the City Council to finalize a budget that reflects the realities we face and the values we hold. 

Did you know? In 1963, Tom Hom became the first person of color, and the first Asian American, elected to the San Diego City Council. In 1968, he ran for a seat in the California State Assembly, and won. He was the second Asian American elected to the California State Legislature. 

In 2022, we honored his legacy by designating a portion of Third Avenue—where he was born—as “Honorary Tom Hom Avenue.” The street sign, featuring both English and Chinese lettering, was unveiled thanks to the leadership of Councilmember Chris Cate. I joined community members in celebrating this meaningful recognition. 

Just down the street, by the way, at the intersection of Third and J, a new mural titled “Abalone Journey” now honors the contributions of early Chinese fishermen who helped shape San Diego’s working waterfront. Together, Tom’s sign and the new mural mark the rich legacy of San Diego’s Asian Pacific community and their lasting impact on our city. 

Tom’s groundbreaking service paved the way for more inclusive leadership across our city. During Asian American and Pacific Islander Heritage Month, we honor leaders like Tom Hom who helped shape a more equitable San Diego.