SAN DIEGO — San Diego Mayor Todd Gloria on Wednesday said budget cuts are in the works after voters rejected a sales tax increase last month.
"Without these additional funds, next year's budget process will be difficult, but we will use this as an opportunity to reimagine how the city operates," Gloria said.
Gloria was re-elected to a second four-year term last month, but city voters narrowly rejected Measure E. This 1-cent sales tax increase would have generated about $400 million a year.
Now, the city has a projected deficit of $258.2 million for the fiscal 2026 budget that begins July 1.
Gloria said the cuts include:
*A hiring freeze except for essential hires.
*Suspending all non-essential overtime.
*Pausing non-essential spending such as expenditures on travel and training.
*Halting the Civic Center revitalization process.
*Exploring the opportunity to monetize
city facilities such as Golden Hall and the adjacent parking structure.
The reductions come after Team 10 found the city has been on a hiring spree since the beginning of Gloria's first term.
Team 10 found the number of city employees went from just under 12,000 people to nearly 13,300 under Gloria. And during the past few years, most city employees have received large pay raises.
The mayor on Wednesday defended all the additional employees, but he said there may need to be some changes.
"There may be direct impacts to employees," the mayor said. "We are still trying to figure out what that would look like."
He added that the city of San Diego has become an "employer of choice" and filling vacancies has allowed city workers to fix street lights, pave roads and respond to 911 calls for residents.
The city has been able to add those positions and give raises because revenue has continued to rise during Gloria's first term.
That's expected to continue into the next fiscal year by about 3 percent, but expenditures are projected to grow at a higher rate.
That's why there is a $258 million structural deficit.
However, a city spokeswoman said there could be some new pots of money including another $70 million when the city starts collecting revenue from trash pickup.
Gloria encouraged the community to get involved in the budget process, which begins Dec. 11 with the city's Budget Committee.
