Mayor Todd Gloria said protecting homeless services is among his top priorities in the 2026/27 fiscal year budget proposal, but some advocates worry proposed cuts could impact thousands of San Diegans experiencing homelessness.
One of the cuts appears to eliminate funding for the Neil Good Day Center operated by Father Joe’s Villages. Located on 17th and K Street, the Neil Good Day Center offers an array of services to nearly 7,000 people experiencing homelessness. The services include providing unhoused San Diegans a place to shower and do laundry, and connecting them to a case manager, among others.
“These are critical services that are helping people off the streets, but really better their lives and their health and their employment situation as well,” Deacon Jim Vargas with Father Joe’s Villages, the center’s operator, said.
Vargas said that through their prevention and diversion strategies, they’ve managed to keep nearly 1,000 individuals from falling into homelessness.
“So by helping them pay rent, or helping them with their utilities, or helping them to reunite with family,” Vargas said.
Right now, the city allocates at least $850,000 per year to the Neil Good Day Center, according to Vargas. But the future and funding for these services are in limbo because of Mayor Todd Gloria’s proposed budget cuts.
“The impact on those whom we’ve been serving at the Daily Center would be very severe,” Deacon Vargas said.
In a statement to NBC 7, Mayor Todd Gloria said in part, “We must find more efficient and cost-effective ways to address this crisis and prioritize funding for programs that provide shelter beds and maximize resources to programs that place people into permanent housing.”
Since it’s still at a proposal stage, Deacon Vargas said it’s unclear how the city will decide to move forward. The mayor will present his budget to city council on Monday.
However, Deacon Vargas said services would be significantly reduced because they would be forced to operate solely on a budget of about half a million dollars they receive from philanthropy.
“The hours would be cut. Some days would be cut. We would have showers that might be impacted because they’re given seven days a week and we’d close two days a week, then the showers would be five days a week, the case management,” Deacon Vargas said.
Deacon Vargas is certain of one thing. He would like to continue offering services at the Day Center, even if the city goes through with the funding cuts.
“As we work with individuals at the Day Center and at Father Joe’s Villages, the community becomes healthier as a result of it,” Deacon Vargas said.
The budget also recommends additional cuts to homeless services, but does not give specifics as to where those cuts would be.
The $6.4 billion proposed budget for Fiscal Year 2026/27 will be discussed, debated and amended until June 9, the city’s deadline for adopting a final budget. Gloria said the nearly $120 million hole in the city’s finances was built over decades of deferred maintenance, rising costs and changing priorities both in Washington and Sacramento.