National City mayoral race centers on $13 million budget gap and business tax

National City faces a structural deficit of $13 million, a shortfall that has dominated the mayoral race as the election approaches next week. This financial gap threatens core city services unless new revenue streams are established quickly.

City Manager Douglas Schulze oversees the daily administration of the city’s $90 million budget. He warned that without immediate revenue increases, the city may be forced to cut services, including the library, the swimming pool, and the George H. Waters Nutrition Center.

Two leading Democratic candidates, City Councilmembers Marcus Bush and Jose Rodriguez, debated these issues in a forum on Monday. They are competing to succeed outgoing Mayor Ron Morrison in the small, working-class city. Two other candidates, Jacobb Castrejon and Mitch Beauchamp, are also running, though neither has reported receiving endorsements or campaign donations.

The central point of contention is a proposed tax on local business licenses. Rodriguez, who championed the proposal, argued it could generate up to $7 million in new annual revenue. He criticized Bush and other councilmembers for delaying a vote on the tax to at least 2027. Rodriguez stated that the measure is standard practice intended to help the community by targeting larger businesses.

Bush defended his vote to postpone the tax, arguing that the City Council needed to engage more with local businesses to reach a compromise. He pledged to rein in city spending while listening to the hundreds of businesses operating in National City.

The candidates also outlined divergent plans for housing affordability. Bush proposed allowing homeowners to sell accessory dwelling units separately under state law. He also pledged to revive the city’s shuttered grant program to assist homebuyers with down payments, citing inefficiencies in current spending as the reason for the program's closure.

Rodriguez pledged to expand the city’s rent stabilization measures to cover apartment buildings. Currently, National City’s local rent stabilization rules only apply to mobile home parks. Rodriguez said expanding coverage would help control rent prices and keep existing affordable housing affordable.

During the forum, the two candidates exchanged accusations regarding the handling of public funds. Rodriguez accused Bush of improperly receiving travel money from the San Diego Metropolitan Transit System for travel that did not occur. Bush said the agency over-reimbursed him by approximately $1,000 and was returning the funds, though Voice of San Diego has reported the amount is closer to $4,000. Bush countered by pointing out that Rodriguez spent $47,000 in taxpayer funds two years ago to hire a consultant with whom he had connections. The consultant, Cindy Lopez, later became Rodriguez’s executive assistant. Lopez is currently running for City Council against current member Luz Molina.