After Measure E’s Failure, Unions Expected to Return With a Bigger Pitch

San Diego City Hall

By San Diego Monitor News

Local labor unions are preparing a campaign to place a one-cent city sales tax increase on San Diego’s 2026 ballot, arguing that years of deferred maintenance and underfunded services have pushed the city to a breaking point.

The coalition—led by Laborers Local 89 among other labor unions and groups are working to put together the ballot proposal.

Organizers say the additional penny on every dollar spent in the city would generate close to $400 million a year. They contend that money is needed to repair crumbling water and sewer lines, tackle wildfire prevention, bolster emergency response, and keep basic city services from falling further behind. Backers describe the measure as a way to stabilize essential operations that residents rely on but rarely see until something fails.

Over the past several months, the unions have commissioned polling to test both the public mood and how a tax measure might fare. The results reflect a complicated picture.

Many voters express dissatisfaction with City Hall and worry that resources aren’t being managed well. Rising costs across San Diego remain a dominant concern. Even so, respondents also acknowledged that the city lacks the revenue to meet its infrastructure obligations.

That tension—skepticism about government paired with recognition of pressing needs—is shaping the proposal’s strategy. Supporters say this year’s version will place a larger emphasis on oversight. Early plans include independent audits and a citizen review panel charged with monitoring how the funds are used.

If the effort proceeds as envisioned, San Diego voters will be asked in November 2026 to approve the new tax, a little more than a year after a similar measure fell short at the ballot box.

Union leaders believe they can make a stronger case this time by focusing on the visible consequences of delayed investment and by presenting clearer guardrails for how the revenue will be spent.