With 2026 just around the corner, there’s a whole lot coming up for the City of San Diego, especially when it comes to allocating and budgeting for the new fiscal year. With a total budget of just over $6 billion for 2026, the City of San Diego is among some of the top cities in the nation with an annual budget exceeding several billion dollars. 

Earlier this year, Mayor Todd Gloria’s office released the final budget proposal for 2026. Next year’s budget includes $2.15 billion for the city’s General Fund, the pot that pays for day-to-day services like police, fire-rescue, libraries, parks, and homelessness programs. It sets aside nearly $846 million for the Capital Improvements Program, which covers long-term projects such as $656 million in water and sewer upgrades, $48.8 million for stormwater and flood-control work, and about $83 million for street repairs and maintenance. The plan also allocates more than $11 million for improvements at Mission Bay, nearly $6 million to construct the new Oak Park Library, and $2 million to upgrade the Mission Beach Lifeguard Station. Another $17.7 million will modernize the city’s technology systems, while funding continues for public safety efforts, including the Advanced Lifeguard Academy and the Firefighter Wellness Program, as well as rental assistance and eviction-prevention services to help keep people housed.

Unlike the federal government, local and state governments can’t spend more than they earn, which has put San Diego in a tight spot after voters rejected proposed tax increases during last year’s election. Recently, the City has begun exploring new revenue streams that could help offset some of the budget shortfall. One way the city is addressing this is by raising parking prices, implementing higher rates during major events such as Padres’ games, introducing paid parking in Balboa Park, and increasing trash collection fees to generate additional earnings. 

With prices already rising across the country, the new price increases could further raise the cost of living in San Diego, adding insult to injury for residents and businesses. As we inch closer to 2026, the true effects of these changes on both the city’s financial health and the everyday lives of San Diego residents will become increasingly apparent.