The city of San Diego is using tax revenue from Measure C, a 2020 ballot measure, to pay off old debt from the 2001 Convention Center expansion. The measure was initially intended to fund a new expansion of the Convention Center, as well as improved homeless services and road repair. However, due to an ongoing court battle, the city was unable to collect the tax for several years.

Measure C Funds Diverted

The city makes annual payments of about $12 million to pay off the old debt. This year, the city will use $6 million from Measure C to cover half of that amount. The mayor had proposed using the Measure C funds for other purposes, including paying $1.2 million for the dewatering of the Convention Center and $3 million for marketing the Convention Center through the Tourism Authority.

Instead, the city’s independent budget analyst and the City Council decided to use the Measure C funds to restore funding for the arts, which had been proposed for cuts in the mayor’s budget. Councilmember Kent Lee, who helped craft the solution, noted that it is unclear how the city will come up with a new plan to expand the Convention Center, given the significant inflation in construction costs since Measure C was passed.

The mayor expressed disagreement with some of the Council’s adjustments to his budget but stated that he would not veto them. He warned that diverting Measure C funds from the Convention Center may avoid difficult cuts this year but will set the city up for the same budget challenges next year.

Original reporting: Voice of San Diego — read the source article.