City Council Drops October Budget Priority Memos, Reducing Own Input Into $6 Billion Spending Plan

The San Diego City Council is retreating from a four-year-old policy that gave members an earlier say in shaping the mayor's annual budget, eliminating the October priority memos each councilmember has submitted since 2022.

The change, outlined in the Independent Budget Analyst's key dates report issued September 11, reduces the number of annual budget priority submissions per councilmember from three to two. Councilmembers will now submit one round of priorities in January — instead of the previous practice of an early round each September followed by updates in January — plus final modification memos in May.

"One round of Council Budget Priority Memoranda is proposed, instead of two rounds. This streamlines the process while still giving Councilmembers an important opportunity to share their priorities for the FY 2028 Proposed and Adopted Budgets," the IBA report states. The report explicitly notes that "the Budget Priorities Memoranda that were submitted to the IBA's Office in September are removed."

Budget Committee Chair Henry Foster told the San Diego Union-Tribune that the change reflects the city's volatile financial picture. "This was done just because of how volatile our finances have been and to make sure we allowed staff some greater opportunity to really hone in," Foster said.

The early October memos were created in 2022 under then-Budget Committee Chair Chris Cate to amplify council input before the mayor's finance team began drafting the proposed budget each April. Former Councilmember Monica Montgomery Steppe, now a county supervisor, told constituents at the time that the memos ensured council priorities were "highlighted during the budget-crafting process."

But councilmembers have acknowledged the early memos lost impact as the city grappled with deficits and revenue uncertainty. Councilmember Kent Lee, a former budget committee chair, submitted just four paragraphs last fall instead of detailed requests. "In light of the many unknowns from economic impacts on revenues, more time is necessary in order to identify our budget priorities and mitigation strategies to achieve a balanced budget," Lee wrote.

The city faces persistent structural deficits. The council approved a $6 billion budget in June after contentious debate over cuts to libraries, recreation centers, and arts programs. The city's five-year financial outlook released each November has repeatedly projected shortfalls.

Under the new schedule, the call memorandum for councilmembers' FY 2028 budget priorities goes out in December, with memos due to the IBA by January 8, 2027.