San Diego moves to close $146 million deficit with layoffs, furloughs, and service cuts

Photo: TODDGLORIA.COM

SAN DIEGO — Mayor Todd Gloria has introduced a budget proposal that includes layoffs, employee furloughs, and reductions to public services as the City of San Diego confronts a projected $146 million deficit in the upcoming fiscal year.

A structural budget gap

City officials attribute the shortfall to slower growth in key revenues, including sales and tourism-related taxes, alongside rising personnel and infrastructure costs. The administration has framed the deficit as structural, requiring corrective measures beyond a single budget cycle.

Workforce and spending cuts

The proposal outlines targeted layoffs, primarily outside public safety; employee furloughs to reduce payroll obligations; and department-wide spending reductions. Public safety funding is expected to be comparatively protected, pending City Council review.

Cuts to libraries, arts, and recreation

Community-facing services are among the most affected. The plan includes reduced hours at libraries and recreation centers, decreased funding for arts and cultural programs, and scaled-back park maintenance. Officials have warned that without action, deeper service disruptions could follow.

Council review will determine scope of cuts

The proposal now moves into a structured City Council review. In San Diego, the budget proceeds through May hearings and department-level scrutiny, followed by revisions and a required mid-June adoption vote.

The extent of layoffs, furloughs, and reductions to libraries, parks, and arts funding will be set during those hearings, where councilmembers can alter or reallocate spending before final approval.

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