San Diego faces a $7.8 billion infrastructure funding gap over the next five years, driven largely by stormwater needs, according to an IBA analysis of the city’s capital outlook. As city council candidates vie for office, they disagree sharply on whether to pursue external grants or optimize existing tax revenues to tackle the backlog.
How large is San Diego’s infrastructure funding gap?
The city needs $12.8 billion for infrastructure needs over the next five years, including roads, streetlights, and stormwater channels. City officials have only identified $5 billion to fund the need, leaving a capital funding gap of $7.8 billion. Stormwater needs make up 65 percent of that gap, according to the IBA analysis of the city’s capital outlook.
This fiscal pressure arrives after deep general fund budget cuts and public backlash over trash and parking fee increases. Candidates running in upcoming city council elections now face difficult choices regarding how to secure capital without overtaxing residents.
Why are candidates resisting new taxes?
Most candidates express strong hesitation regarding new taxes or fee increases to close the multi-billion-dollar deficit. Richard Bailey, running in District 2 against Nicole Crosby, argues that the city generates record revenue and simply needs better spending efficiency.
“The city brought in an all-time high record amount of tax revenue this fiscal year, so it’s not a question of whether we need higher taxes but rather spending the taxes we already collect more efficiently,” Bailey stated over text.
Crosby counters that relying solely on internal efficiency is insufficient and advocates pursuing state and federal funds. “My opponent is always saying — asking the state or federal government for assistance on infrastructure is a waste, but it’s absolutely not a waste because we as California taxpayers pay huge sums to the state and federal government,” Crosby said.
Bailey rejects relying on outside bailouts, calling it a fundamental misunderstanding of local, state, and federal tax allocations.
What role do state and federal grants play in the debate?
In District 8, Gerardo Ramirez agrees with pursuing outside financial assistance. Ramirez points to an audit on the city’s grants program in 2025, which indicated the city could be getting more money.
“We gotta make sure we’re not leaving those [grants] behind because again, we’re just leaving money at the table,” Ramirez said.
Ramirez’s opponent, Antonio Martinez, also supports pursuing federal and state grants while coordinating with the county to close infrastructure gaps. Martinez emphasizes that the city must first prove fiscal responsibility before proposing any new tax measures to voters.
Meanwhile, Councilmember Henry Foster, representing District 4, points to his legislative record. Foster noted during an interview at Politifest 2026 that he secured federal loans for stormwater infrastructure, including over $190 million available for deficiencies in Chollas Creek.
What infrastructure projects require urgent attention?
Emergency repairs consume substantial portions of municipal funds before planned maintenance can occur. Ramirez noted that in 2024 alone, the city spent more than $50 million on emergency repairs on storm drains. He advocates shifting toward a maintenance plan on the city’s storm drains and storm pipes to prevent emergency breaks.
Other candidates propose independent audits of city budgets and contracts to identify savings. Crosby stated she would not consider supporting a new tax until the city audits its contracts and brings all its real estate leases to fair market value.
Frequently Asked Questions
How much funding is needed specifically for stormwater repairs?
Stormwater needs make up 65 percent of the $7.8 billion capital funding gap, according to the IBA analysis of the city’s capital outlook.
Which council districts are seeing contested debates over infrastructure?
District 2, stretching from Point Loma to Clairemont, features a race between Richard Bailey and Nicole Crosby. District 8, covering southern neighborhoods like Barrio Logan, Tijuana River Valley, San Ysidro and Nestor, features a contest between Gerardo Ramirez and Antonio Martinez.
What specific local water project received federal backing?
Councilmember Henry Foster secured over $190 million available to fix deficiencies in Chollas Creek.
Did all incumbent councilmembers comment on the infrastructure backlog?
No. Councilmember Henry Foster discussed his record, but his opponent Martha Abraham did not respond to requests for comment. Councilmember Kent Lee declined to comment, and his opponent Mark Powell did not respond.
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