This story was reported for San Diego News Network on June 8, 2009.
San Diego’s City Council passed the mayor’s proposed $3 billion budget Monday 7-1, despite the possibility of the state’s mandated loan of $36 million.
After months of battles from unions and those against fee increases, seven city councilmembers opted to take Mayor Jerry Sanders’ route on the budget — accepting numerous cuts without taking into consideration the state’s fiscal woes.
“This budget will go in to imbalance once the state’s budget is felt locally,” said Councilmember Carl DeMaio. “We still do not have a way of back-filling those revenues.”
The budget passed on Monday with Carl DeMaio as the only councilmember voting against it.
The budget, as proposed by the Mayor, includes six percent cuts from most city employees and a variety of fee increases to help balance the $60 million expected deficit. It will also tap into $17.8 million in hotel-tax reserves, a trend common these days among most local municipalities to make it through the recession. Among the major changes to the budget include:
Cuts:
– General fund will drop from $1.19 billion to $1.15 billion
– Park and Recreation Department from $121.6 million to $116.4 million
Increases in departments:
– San Diego Police Department will increase from $424.5 million to $427.2 million
– San Diego Fire-Rescue will increase from $199.5 million to $209.5 million
– Libraries will increase from $37 million to $38.7 million
Fee increases for San Diegans:
– Overdue library books will increase from 25 cents a day to 30 cents.
– Child admission for public pools will increase from $1.50 to $2
– The pool rental rate will increase from $44 per hour to $50 per hour
– Pedicab operation permits will increase from $25 to $40
– Nude entertainment business permits will increase from $2,800 to $15,702
– Swapmeet permits will increase from $975 to $1,276
The budget proposal did face one amendment from the city council. Councilmember Marti Emerald asked her colleagues that they amend one part of the proposal that requested the council forfeit an additional $32,000 from the council offices’ individual budgets and $59,212 from council administration. The total budget to run the city council offices amounts to $9.7 million.
She asked, instead, that the money be taken from infrastructure funds and appropriated reserves. The council voted 5-3 on this motion with DeMaio, Sherri Lightner and Kevin Faulconer opposed.
Despite the possibility of the budget balancing next fiscal year with Monday’s passage, DeMaio is not pleased. The councilmember said he was concerned with three parts of the proposed budget: the fee increases during a time of economic despair, hitting the reserves for stability and the state’s possible mandated loan.
He said the mayor’s budget did not fully reflect the current state of the economy nor what may happen as soon as the state’s budget is passed, which could happen as early as June 15.
Gov. Arnold Schwarzenegger’s proposal to suspend Proposition 1A from 2004 would borrow up $2 billion in property tax revenue from local governments. If two-thirds of the legislature approves of this suspension, that would mean San Diego would have to loan up $36 million.The possibility of this has city officials extremely concerned, considering the city had a spending shortfall of nearly $83 million.
During an emergency budget meeting last week, Sanders expressed to other city leaders his worries over the state’s possible mandate. Calling it ” the proposed theft,” Sanders said he would do all he could to stop the state from taking his city’s minute funds.
“In order to borrow, you need someone who is willing to lend,” said Sanders last week. “We’re not willing to lend.”
Faulconer said although the budget doesn’t take in to consideration the state’s possible mandate, that further cuts will be made as soon as possible.
“Unfortunately, the budget will likely be out of date in just a couple of weeks,” Faulconer said. “[Although] the budget will be adopted today, we’re gonna need to go right in and make some changes.”
Joe Britton of City News Service contributed to this report. Hoa Quach is the political editor for the San Diego News Network.