The 2026 draft budget for San Diego has been released and funding for both operations and new infrastructure have been slashed. The library section of the operational budget may be viewed here. The Capital Improvements Program budget shows a reduction from last year’s spending to 16% (an 84% cut). As the possibility of a new library for Kensington/Normal Heights was relying on availability of suitable land, Developer Impact Fees, and the will of the City to fulfill the promises laid out in the Library General Plan, the future does hold much hope.
The introduction to the Capital Improvement Program budget presents the challenge the city will fail to achieve in the tables and figure that follow.
“Buildings, infrastructure, technology, and major equipment are the physical foundation for providing services to the City’s residents.”
Multi-Year CIP by Department
Beyond the 84% reduction in capital budget for the coming year, there is projection of only spending a little over $10 million per year for the next 5 years. Spread across 37 locations, this allows for spending an average of $270K per location annually!
| Department | Prior Year | FY 2026 Draft | Future (5) Years |
| Library | $90.3M | $5.9M | $54M |
Funding Sources
The main source of funding for building new libraries comes from the collection of city-wide Developer Impact Fees. This fund was spent down building the Pacific Highlands Ranch, completed November 2024. Funds in individual community planing area DIF accounts are planned to be used on existing projects and specific application to libraries has not been stated by the city.
“Parks, stormwater, and other building projects, such as police, fire-rescue, and library buildings, compete for scarce resources, including Development Impact Fees and the City’s General Fund.”
Fiscal Year 2026 Draft CIP Budget
The $3.5 million in projected income from DIF seems very low since the 2024 Fund Report shows $69,268,539 in DIF income.
| Funding Source | FY 2026 Draft Budget | Percent of Total CIP Budget |
| Development Impact Fees | 3,510,488 | 0.41% |
For a full report of the city’s 2026 budget, visit https://www.sandiego.gov/finance/draft.