San Diego and Arizona are grappling with a range of pressing issues, from water management to budget negotiations and healthcare access. These challenges highlight the complex interplay between environmental, financial, and social factors in shaping regional policies and priorities.
The Tijuana River, typically dry during the region’s dry seasonwas flowing on Oct. 31, 2026underscoring the urgent need for sustainable water solutions. Meanwhile, budget negotiations in San Diego have sparked intense debates, and a long-shuttered treatment facility is set to reopen, addressing critical healthcare needs.
Arizona’s Ambitious Water Exchange Plan
Arizona is exploring an ambitious plan to fund a wastewater-to-drinking water facility in the Tijuana River Valley. The proposal aims to purify water and pipe it back to Mexico in exchange for a share of Mexico’s Colorado River water. This initiative is part of a broader effort to secure new water resources for the drought-stricken state.
The plan, backed by a $1 billion Arizona fundhighlights the state’s desperation for solutions amid the looming potential “crash” of the Colorado River basin. However, the legal and environmental complexities of treating another country’s runoff on U.S. soil present significant challenges. The International Boundary and Water Commission (IBWC) is closely monitoring the situation, emphasizing the need for careful navigation of cross-border sewage issues.
Reopening of a Shuttered Treatment Facility
The county is preparing to reopen a former Volunteers of America Southwest substance use treatment facility in National Cityfour years after acquiring it in a settlement deal. The facility, which will offer 73 residential treatment beds and 16 recuperative care bedsis expected to open early this fall.
The county took over the 120-bed facility in 2026 after investigations revealed financial misconduct at the nonprofit. The Department of Veterans Affairs pulled $2 million in funding, leading to the ouster of the CEO and the resignation of the entire board of directors. The county has invested $29 million in state bond and grant funds, as well as opioid settlement dollars, to rehabilitate the facility. The New Creation Behavioral Healthcare Foundationbased in Ontario, Calif.has been contracted to operate the center.
San Diego City Council Budget Reckoning
Today, the San Diego City Council will vote on a final budget to send back to Mayor Todd Gloria‘s desk for approval, veto, or line-item vetos. The budget process has been contentious, with Gloria initially proposing cuts to libraries, recreation centers, and arts funding while maintaining funding for firefighters and police. Councilmembers have pushed back hard, advocating for the restoration of some of that funding.
Expect more tension on these topics today, with potential discussions on ending the city’s controversial Smart Streetlights program. Additionally, a correction was issued regarding yesterday’s Morning Reportwhich incorrectly attributed quotes from Council President Joe LaCava to Charles ModicaSan Diego’s independent budget analyst. LaCava expressed disagreement with “draconian cuts” to the city’s middle managers and opposed new revenues or fees on San Diegans.
In other news, more than five years after San Diego residents voted for stronger and more independent police oversight, the city’s Commission on Police Practices still lacks many of the promised powers. An air purifier company is suing San Diego Countyarguing that a $26.8 million contract awarded to a competitor should be voided due to faulty contract processes. The air purifiers are intended for South Bay residents exposed to toxic gases from the Tijuana River.
The California Teachers Association has come out against the billionaire tax on the November ballot, citing restrictions on how the new revenue would be used. Meanwhile, County Supervisor Joel Anderson will revive his push to make the county’s secret subcommittees more transparent. The San Diego City Council officially voted yesterday to repeal paid parking in Balboa Park and reduce trash fees for single-family homes.
Fire crews were working to extinguish a wildfire near Sorrento Valley Boulevard yesterday, leading to road closures and several neighborhoods receiving evacuation orders. The Morning Report was written by Tigist LayneLisa HalverstadtJakob McWhinneyand Will Huntsberryand edited by Will Huntsberry.
