State Set to ‘Borrow' $106 Million From San Diego

Budget fixes rely on shifting funds from city, counties to state

Gov. Arnold Schwarzenegger will likely use more than $100 million from local governments to narrow a gaping state budget gap, according to city and county officials.

San Diego's director of intergovernmental relations, Job Nelson, told a City Council committee Wednesday that the state will probably borrow $36 million from the city. County Supervisor Dianne Jacob said the county would be out $70 million.

The state is trying to close a $24 billion budget deficit that seems to grow daily.

Local officials -- including the mayors and city managers of 15 cities around the county -- are expected to meet Wednesday afternoon to discuss the impact of the budget moves.

San Diego City Councilman Tony Young gave voice to his frustration at repeatedly balancing the city's budget while the economy craters.

"It's almost like we're running a marathon and we are about a mile away from finishing the marathon and somebody yells and says, 'Hey, when you finish, we got to climb some mountains,' " Young said. "We have done a lot of work, but it never ends."

Contact Us