San Diego is facing a projected $120 million shortfall in its General Fund for the upcoming fiscal year, according to the Fiscal Year 2027 – 2031 Five-Year Financial Outlook released in November 2025. City officials state that balancing the budget is legally required and are approaching the process with “fiscal prudence and discipline.”
Budget Challenges and Priorities
The shortfall is attributed to a reduction in one-time revenue sources that supported the FY 2026 Adopted Budget, alongside increasing costs for city services and slowing revenue growth. Despite these challenges, the city remains committed to core priorities including fixing roads and infrastructure, public safety, housing development, and addressing homelessness.
The budget process will involve multiple stages of review and public input. The City Council will review a Mid-Year Budget Monitoring Report on February 23, 2026, and the FY 2027-2031 Five-Year Capital Infrastructure Planning Outlook on March 10, 2026.
Key Dates in the FY 2027 Budget Process
Here’s a look at the key dates outlined for the FY 2027 budget process:
- April 15, 2026: Release of the Mayor’s FY 2027 Draft Budget online.
- May 4 – May 8, 2026: Budget Review Committee (BRC) budget presentation hearings.
- May 13, 2026: Release of reports from the IBA.
- May 18, 2026: City Council reviews the FY 2027 May Revision.
- June 5, 2026: BRC discusses recommended City Council budget modifications.
- June 9, 2026: City Council approval of the FY 2027 Budget.
Frequently Asked Questions
What is the current budget shortfall facing the City of San Diego?
The City of San Diego is currently facing an estimated $120 million shortfall in its General Fund for the upcoming fiscal year.
When will the Mayor’s Draft Budget be released?
The Mayor’s FY 2027 Draft Budget will be released online no later than April 15, 2026, as required by the City Charter.
How can the public participate in the budget process?
Public meetings and hearings will be held throughout the budget process, including a BRC hearing for public input on May 6, 2026. The process also includes committee discussions and City Council votes.
As San Diego navigates these financial challenges, how might community involvement shape the final budget decisions?
