San Diego Projects Balanced Budget Next Fiscal Year
The city's Five-Year Financial Outlook shows ongoing revenues covering ongoing expenses for the first time without new cuts.
Updated on Nov. 6, 2026 in Saving
Live Poll
Do you trust your local government to manage its budget without cutting essential services?
The City of San Diego's Department of Finance released its Five-Year Financial Outlook on Friday, projecting a balanced General Fund budget for the next fiscal year. The city has moved from deficits of $136.8 million in Fiscal Year 2025 and $258 million in Fiscal Year 2026 to a projected zero gap.
Why it matters
The projection means ongoing revenues are expected to cover ongoing expenses without relying on one-time funding to close the gap. For San Diego residents, it signals the city will not begin its next budget cycle by deciding which services to cut.
The Outlook credits about $180 million in ongoing spending cuts over two years and roughly $80 million in new annual revenue from the Measure B trash collection fee. Roughly $63 million per year from Measure C, other tourism-tax revenue and opioid settlement funds is also credited, though the document's full methodology for these projections was not provided.
The players
City of San Diego Department of Finance
The city agency that prepares and publishes San Diego's budget and financial planning documents, including the Five-Year Financial Outlook.
Rolando Charvel
San Diego's Chief Financial Officer, overseeing the city's finances and budget projections.
Bethany Bezak
San Diego's Chief Operating Officer, responsible for the city's day-to-day operations and service delivery.
The details
The Five-Year Financial Outlook, released by the Department of Finance, credits consolidations, position reductions and service-level rightsizing for much of the turnaround. San Diego voters' approval of the trash collection fee through Measure B ended a practice requiring the General Fund to subsidize trash pickup.
Timeline
Fiscal Year 2025: City faced a $136.8 million deficit.
Fiscal Year 2026: City confronted a $258 million deficit.
Friday, November 6, 2026: Five-Year Financial Outlook released.
April: Mayor's budget proposal expected.
Roadmap
The Measure B trash collection fee, approved by San Diego voters, now supplies about $80 million in new annual revenue that the city previously spent from its General Fund. The Five-Year Financial Outlook builds that ongoing revenue into its projection of a balanced budget over the next five fiscal years.
For San Diego residents, a balanced projection means the city is not expected to begin next year's budget by proposing service cuts. Residents who pay the new trash collection fee are funding a service that previously drew on the General Fund.
The takeaway
A balanced projection depends on ongoing revenues covering ongoing costs, so residents should watch the April budget proposal to see whether the plan holds. Following the city's finance department publications offers a direct view of how these projections change over time.
What happens next
The Mayor's budget proposal is expected in April, when the specific spending plan for the projected balanced budget will be detailed.
Further reading
For related context, explore Saving coverage on Wisevoter.
More information
Review the City of San Diego finance department page for budget documents and reports.
Live Poll
Do you trust your local government to manage its budget without cutting essential services?
