Government Affairs Update
Friday, May 2, 2014
by: BOMA San Diego's Government Affairs Committee

Section: Government Affairs


On April 14, Mayor Kevin Faulconer released his proposed Fiscal Year 2015 budget.  The plan outlines a $2.97 billion total budget, including a $1.18 billion General Fund for day-to-day operations.  While the City had previously projected a $19.1 million General Fund deficit, Mayor Faulconer announced a projected surplus of $35.3 million due to growth in property tax, sales tax, transient occupancy tax and implementing financial reforms and managed competition. 
On balance, the budget is a much needed departure from the more austere budgets of the past few years, and reflects a growth in expenditures as a result of better than expected revenues.  The proposed growth in spending reflects Mayor Faulconer's priorities of infrastructure investment.  The budget also reflects a shift in focus on homeless prevention, which BOMA will monitor due to its implications to Downtown San Diego commercial properties.  
The San Diego City Council will deliberate the proposed budget May 5 – 9, the Mayor will release his revised budget on May 21 and adoption is anticipated in June.  A snapshot is provided below:
Total Budget - $2.97 billion
General Fund - $1.179 billion (39.7%)
Enterprise Funds - $934.6 million (31.5%)
Special Revenue Funds - $380.3 million (12.8%)
Capital Improvement Program - $297.7 million (10%)
Internal Revenue Service Funds - $165.1 million (5.6%)
Capital Projects Funds - $12.5 million (0.4%)
General Fund - $1.179 billion
Police - $417.3 million (35.4%)
Fire-Rescue - $217.7 million (18.5%)
Transportation and Storm Water - $103.4 million (8.8%)
Park and Recreation - $95.7 million (8.1%)
All others – Public Works, Environmental Services, City Attorney, City Council, City Treasurer, etc.
Key Areas of Increased Funding

1.     Infrastructure
a.      More than 50% of General Fund growth is dedicated to infrastructure. 
b.      Includes 18 additional positions solely focused on street resurfacing and pothole repair.
c.       Dedicates new funding for storm water infrastructure and drainage projects
2.      Public Safety
a.      Four upcoming police academies will increase from 34 to 43 positions
b.      Funding for police body cameras
c.       Funding for a temporary fire station in the Skyline neighborhood of Southeast San Diego
d.      Two additional fire academies
3.      Neighborhood Improvements and Services
a.      Additional funding and staffing to update community plans
b.      Expanded library hours
c.       New after-school programs in areas with poorly performing students
d.      Staffing for 11 new and upgraded park and recreation facilities
4.      Homeless Services
a.      Reallocation of $1.9 million previously programmed for the year-round operation of temporary homeless shelters (tents)
b.      Allocates $800,000 for partial temporary shelters (November through March)
c.       Allocates $300,000 to Connections Housing for the PATH facility
d.      Allocates $400,000 for a homeless management information system
e.      Allocates $160,000 to SDPD for homeless related programs
The CAL Chamber has identified 27 “job killer” bills that are being tracked by BOMA San Diego through BOMA CAL and the California Business Properties Association (CBPA).  Many of these bills were identified at an all-day commercial real estate review meeting convened by CBPA and attended by representatives of BOMA San Diego.  As a result, and with the effort of BOMA CAL and CBPA, among the list are several bills that directly impact the commercial real estate industry, including:
AB 1522 (Gonzalez; D – San Diego) Paid Sick Leave: increases employer mandates by requiring all employers, large and small, to provide all employees in California with paid sick leave, and threatens employers with statutory penalties as well as litigation for alleged violations.
AB 2372 (Ammiano; D – San Francisco) Split Roll Change of Ownership: unfairly targets commercial property by redefining “change of ownership” to ensure properties are more frequently reassessed, which will ultimately lead to higher property taxes that will be passed onto tenants and consumers.
SB 1021 (Wolk; D – Davis) Split Roll: discriminates against commercial property through split roll by allowing a school district to impose a higher parcel tax against commercial property as opposed to residential property.
Please stay alert for calls to action on these and other bills that impact our industry!  It’s important to communicate the negative impact of these bills to our local legislators.
If you have comments or questions please contact Craig Benedetto at craigb@calstrat.comor James Lawson at