The Illusion of Broke: Why San Diego Always Says 'We Can't Afford It'
At every City Council meeting, budget hearing, and public comment period, while you might not hear the exact phrase "We just don’t have the money," the overall structure of budget deficits, service cuts, and constrained fiscal language paints a clear picture of a system operating under a self-imposed narrative of scarcity. It’s used to justify library cuts, park closures, reduced rec center hours, and the elimination of community programs. But in a city with billion-dollar budgets, expanding development, and rising tax revenues, that excuse deserves a closer look.
So, is San Diego really broke? Or are we just budgeting for the wrong priorities?
A Rigged Revenue System
Let’s start with the big structural problem: California’s Prop 13. Passed in 1978, it caps property taxes at artificially low levels and locks in tax rates when properties are sold. That means even as home values skyrocket, San Diego’s revenue from them remains stagnantly low. Cities are forced to rely on regressive sales taxes, cannabis revenue, and service fees to fund services.
The result? A revenue system that punishes the poor and protects the wealthy, while draining money from long-term investments in public infrastructure.
The Weight of Fixed Costs
Before a single dollar goes to libraries or parks, the city is already on the hook for ballooning pension liabilities, retiree healthcare, and legally binding contracts. In FY26, a massive chunk of the budget is pre-committed. This isn’t optional spending—it’s legacy debt.
This sets up a false choice between honoring commitments and serving the community. But the problem isn’t the commitments themselves—it’s the failure to rebalance priorities over time.
The Administrative Bloat Nobody Talks About
From 2012 to 2022, San Diego saw a 461% increase in middle management roles. Yet, during that time, neighborhood services didn’t expand at the same pace. What we got was a top-heavy system full of internal roles, coordination meetings, and paperwork—not community impact.
It’s easier to find funding for a new strategic initiatives coordinator than a librarian. But which one delivers more value to a struggling family in Barrio Logan or City Heights?
Band-Aids Over Blueprints
We’re not investing in change. We’re spending to stay afloat.
Every year, the budget process becomes a game of plugging holes, deferring maintenance, and praying for federal relief. City leadership stops short of saying anything will actually solve problems. Instead, you get words like:
“Maintain core services”
“Address critical needs”
“Preserve existing capacity”
That’s not a blueprint for progress. That’s crisis management dressed as governance.
What "Broke" Really Means
When a city like San Diego acts as though it’s broke, it doesn’t mean there’s no money. It means there’s no political will to challenge sacred cows:
No will to restructure the bloated admin class.
No will to confront decades of lopsided spending.
No will to build a system that fixes problems instead of managing decline.
We’re not broke. We’re misaligned.
A Final Word
If you’ve ever wondered how the #1 economy in the world still delivers Third World public services to its residents, this is how. We’ve mistaken complexity for inevitability. But these choices aren’t fate. They’re policy. And policies can change.
This is the first in our blog series: San Diego at the Crossroads. In our next post, we’ll break down where the money actually goes—and what that says about who this city is really for.
Until then, ask yourself: What would we do if we weren’t pretending to be broke?
