Jeff Lasky is an award-seeking journalist and the ultimate 'utility player' for ABC 10News in San Diego.
SAN DIEGO — The City of San Diego's projected budget deficit for the next fiscal year is about 44% higher than previously projected, according to a recent update by city staff. Estimated to be $115 million at last report, that number has now ballooned to $166 million, largely due to lower-than-expected sales and hotel tax revenue fueled by 2023's struggles with inflation.
The increased budget challenges come at the same time that San Diego is trying to figure out how to pay to repair and upgrade storm infrastructure that was overwhelmed during the recent storms, leading to catastrophic flooding in some neighborhoods. City staff estimate it would cost roughly $9.25 billion dollars to tackle San Diego's capital improvements between 2025 and 2029. However, current budget projections anticipate only $4.4 billion to be available to pay for it.
City Council president Sean Elo-Rivera has suggested a new water quality tax to raise revenue to pay for storm infrastructure. However, some question any plan that involves new taxes, suggesting instead that San Diego cut spending in other areas to make the necessary investments.
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