Mayor Todd Gloria’s revised budget forces a hard call for the City Council – and councilmembers are already feeling uncomfortable about it.
As our Lisa Halverstadt reports, Gloria’s updated budget dramatically reduces planned cuts to city homelessness programs included in his first pitch but relies on the City Council to redirect funds planned for affordable housing projects to minimize initial planned shelter and other homeless program cuts that spurred backlash.
The competing takes: Gloria’s team argues the tradeoff is necessary to close a major budget deficit and maintain homelessness programs while affordable housing advocates are adamant it’s a short-sighted move.
What councilmembers are saying: At a Thursday budget hearing, multiple councilmembers expressed concern with remaining cuts impacting homeless programs overseen by the Housing Commission and the prospect of tapping affordable housing funds.
Councilmember Vivian Moreno said she will try to reverse the plan to pull affordable housing funds during continuing budget deliberations and Councilmember Jennifer Campbell said she’d also like to fund more affordable housing projects. Councilmembers Joe LaCava, Kent Lee and Henry Foster III also expressed heartburn about Housing Commission cuts and tradeoffs.
Councilmember Stephen Whitburn, who has previously said the city should prioritize shelter, said Thursday he thinks the city needs to fund both shelter and housing.
“Let’s show San Diegans that we can do both,” Whitburn said.
The hard math: Deputy Housing Commission CEO Jeff Davis told councilmembers that the $3 million his agency would have to direct to housing projects absent affordable housing fund dollars being eyed by Gloria’s office would likely only back about 30 units. This past year, the housing agency offered up $30 million for low-income housing projects.
Read the full story on the tough tradeoff here.
About the Crackdown on Cliffside Yoga
Remember when San Diego passed stricter regulations for street vendors in 2022?
Well, it turns out, those rules also apply to donation-based yoga classes and luxury picnics that are commonly seen at places like Sunset Cliffs, Palisades Park and other public beaches and grassy areas in San Diego.
The city says the crackdown is largely due to health and safety concerns, and has since clarified that 2022 law to include all profitable operations in public spaces.
In a new video, our Bella Ross explains that there are a few exceptions, but the general rule of thumb is: if you’re making money on public property, you’re going to need a permit.
View the video here or follow us on Instagram.
Ex-City Real Estate Adviser to Keep License – For Now
Yesterday we told you about ex-city real estate adviser Jason Hughes’ legal action to try to halt the state real estate agency’s plan to revoke his real estate license.
The state Department of Real Estate’s move followed a process triggered by Hughes’ misdemeanor guilty plea after a revelation that the city’s 101 Ash St. landlord paid him $9.4 million for his work on two city lease deals.
The latest: A San Diego Superior Court judge on Thursday ordered a stay on the state Department of Real Estate’s plan to revoke former city real estate adviser Jason Hughes’ real estate license effective today.
Judge Carolyn M. Caietti said she thought it was appropriate to maintain the status quo given the harm that could result if Hughes’ license was pulled and the lack of harm she saw in a pause on the removal. A deputy attorney general argued otherwise.
The next hearing is scheduled for Aug. 16.
San Diego Unified Walks Back Majority of Teacher Layoffs
District officials announced Thursday that they had rescinded 96 percent of the layoff notices issued in March. Of the 234 preliminary layoffs issued, 225 of them had been rescinded.
In a statement, district spokesperson Maureen Magee wrote the reversal came after an analysis of revenue trends and expenses and by taking advantage of retirements and resignations that limited the need for actual layoffs.
“Despite a significant deficit, I am proud that through data-driven planning that prioritized children’s needs, we have developed a fiscally sound budget with limited impacts on our tremendous educators,” Board President Shana Hazan wrote in the statement.
How we got here: In July, district officials announced they were projecting a massive budget deficit that could reach as high as $128 million.
The district was weathering a mixture of financial headwinds from the expiration of Covid stimulus dollars, a continued decline in enrollment and a tightening state budget. A new union contract that granted big raises to teachers also added to costs, though district officials have denied they influenced the deficit.
Officials said they were confident they would be able to balance the books without resorting to layoffs. But in March, they announced teacher layoffs were imminent. Over the following months, both teachers and students rallied against the layoffs.
Still, despite the good news for this year, the district is likely to face another deficit – and more tough financial decisions – next year.
In Other News
- San Diego is hiking up developer fees just months after the city’s recent campaign to accelerate approvals of new housing developments. Critics are concerned the higher fees will increase the cost of housing. (Union-Tribune)
- An attorney representing the San Diego County Sheriff’s Department told a judge Wednesday that Sheriff Kelly Martinez shouldn’t have to testify in a federal lawsuit over how the Sheriff’s Department manages its jail system because she has “no personal knowledge of anything.” (Union-Tribune)
- Unionized graduate students who work at University of California campuses are threatening to strike in response to escalating tensions surrounding pro-Palestinian protests. (KPBS)
- The North County Transit District board approved negotiations for more than 500 affordable housing units at two Sprinter stations in Oceanside. (Union-Tribune)
- The Port of San Diego is doubling its financial commitment to combat industrial impacts to nearby communities like Barrio Logan and National City. (Union-Tribune)
- The cutest little crustaceans have been swarming off San Diego’s coastline from Mexican waters thanks to El Niño. (NBC 7)
- In other local animal news, rattlesnake season has begun. Get yer high-tops out. (Fox 5)
The Morning Report was written by Lisa Halverstadt, Tigist Layne, Jakob McWhinney and MacKenzie Elmer. It was edited by Andrea Lopez-Villafaña.