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Council adopts FY26 budget priorities with full 1¢ TOT recommendation for arts
Summary
San Diego City Council voted unanimously to adopt a FY26 budget priorities resolution that lists operating and infrastructure priorities and recommends allocating the full 1¢ portion of transient occupancy tax to arts, culture and festivals (estimated at $32.4M).
The San Diego City Council unanimously approved a resolution on Oct. 28 adopting the council's initial FY26 budget priorities and recommending how the city's 1¢ share of transient occupancy tax (TOT) be used.
Lisa Burner of the Office of the Independent Budget Analyst summarized IBA Report 24‑30, which compiles council members' submitted priorities. The resolution groups majority-supported items into operating priorities (homelessness and housing, public safety, neighborhood services) and infrastructure priorities (streets, sidewalks, stormwater, parks and facilities).
Burner said the ED and IR Committee and the Budget Committee recommended allocating the full 1¢ TOT — about $32.4 million — to arts, culture and community festivals, an increase of roughly $16.3 million over FY25 levels.
"That recommendation is to allocate the full 1¢ TOT for arts, culture, and community festivals, which is estimated to be $32,400,000," Burner said.
Councilmember Lee moved to accept the IBA report as modified by the Budget Committee; Councilmember Foster seconded. Councilmembers debated whether to include items supported by four members in the bodywide resolution but ultimately voted to transmit the full set of priorities and the IBA report to the mayor for consideration in developing the FY26 proposed budget. The motion passed 8–0 (Councilmember Campbell absent).
Public commenters urged full funding for arts and culture and highlighted neighborhood safety and housing preservation priorities. Representatives from the San Diego Museum Council and local arts organizations thanked the council for unanimous support for arts funding. Several downtown residents asked the council to prioritize installing a protected left‑turn signal at 1st and Market Streets.
The resolution is the council's first step in the FY26 budget process; it will be transmitted to the mayor’s office for inclusion in the proposed budget and can be adjusted in January when more revenue information is available.
