SAN DIEGO – San Diego City Council President Joe LaCava discussed the complexities of dealing with the current city budget deficit and the need for imposing new fees while looking ahead to the new year in a far-ranging Q&A session with Times of San Diego.
Concerning coping with a budget deficit, the District 1 council member representing La Jolla and Pacific Beach said that it is “very similar to what a family, or a business, goes through when their revenues aren’t matching their expenses.”
But, LaCava pointed out, there’s one important difference.
“[The government’s] very limited in terms of what we can do to generate new revenues, so we have to navigate with what revenues the city has at its disposal,” he said.
“In addition, we get hit with new required state and federal government unfunded mandates that we have to deal with. It’s a bit of a challenge.”
LaCava noted the city is also burdened by, and responsible for, the consequences of past decisions made by previous city administrations that have carried over, such as replacing and maintaining aging infrastructure.
The council president spoke of the city’s highest budget priority.
“Our primary function is to deliver public safety; that is our number one job,” said LaCava. “And with a city of our size and geographic diversity, that is an expensive proposition.
“We have to try and fulfill the public’s expectations, everything from filling potholes to having libraries and rec centers open while maintaining our parks and so much more. We get boxed in, in terms of our ability to meet both our structural deficit, as well as our operating deficit.”
Explaining the difference between structural and operating budget deficits,
“You’ve got to meet your ongoing expenses with your ongoing revenues,” LaCava said, explaining the difference between structural and operating budget deficits. “When you have to rely on one-time fixes, that’s when you have a structural deficit, like when you’re relying on funds from the state or federal government on a one-time basis.
“We really need to rely significantly less on one-time revenues to close the budget gap.”
Explaining the rationale and necessity for utilizing new fees and program cuts to help alleviate the city’s budget deficit, LaCava discussed the challenges of trying to balance a bare-bones budget.
“Our ability to cut expenses is limited. Our ability to raise revenues is also limited by California laws. We have had to make more dramatic increases this year in our fees for things like parking meters, while making cuts in public programming, like reducing hours at libraries and rec centers. And (inflationary) increases in the cost of living, which have hit all of us, have made these (fee) changes harder for the public to absorb.”
Concerning the public outcry over the continuing proliferation of accessory dwelling units (ADUs), LaCava said the City Council is nearing a fair compromise on the issue that all stakeholders can live with.
“The council has been asked to step up and make changes,” he noted. “And we responded by allowing just one more unit (four) than the three ADUs that are required by state law.”
Looking ahead to 2026, LaCava spoke of what he sees as the major issues for next year.
“The budget is going to really dominate the conversation,” he predicted, adding the council will also be grappling with equity issues. “We’ll be discussing how we can make housing more affordable with the cost of living for San Diegans in the middle- and lower-income ranges.”
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