San Diego set to eliminate budget deficit next fiscal year

San Diego is on track to eliminate its budget deficit by the next fiscal year, city officials announced, marking a shift from recent years of financial challenges. According to NBC 7 San Diego, the city’s fiscal outlook shows a balanced budget ahead, thanks to fiscal discipline and tough decisions made by city leadership.

The Times of San Diego reported that the city’s Chief Financial Officer, Rolando Charvel, confirmed the expected revenues will cover expenditures, allowing San Diego to avoid the service cuts that have been necessary in previous budget cycles. This contrasts with recent years when cuts affected library and recreation center hours as well as positions in the San Diego Fire-Rescue Department.

In fiscal year 2025, San Diego faced a $136.8 million deficit, which increased to $258 million in fiscal year 2026 before falling to $88.8 million in the current fiscal year. The city’s five-year financial outlook indicates continued improvement, enabling a more stable budget process moving forward.

Despite this positive development, the city still faces a significant infrastructure backlog estimated at over a billion dollars, which remains a major challenge for future budgets and planning, the Times of San Diego noted.