County's $9.16 Billion Budget and a Historic Labor Crackdown on Grocery Sushi
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The San Diego County Board of Supervisors is five days from its final vote on the FY 2026-27 budget, scheduled for Thursday, June 25th at 9 a.m. at the County Administration Center on Pacific Highway. The budget totals $9.16 billion — a $522 million, or 6.1 percent, increase over the current fiscal year. The single largest programmatic allocation is $852 million for safety-net programs including CalFresh, CalWORKs, and Medi-Cal. Additional major line items include $265.9 million for road safety and maintenance, $93.1 million for affordable and supportive housing, and $25.6 million for watershed protection. The budget adds one full-time position in the Sheriff's Office, bringing total county staffing to 20,389.25 full-time equivalent employees.
In what officials described as a first-of-its-kind move, the County filed its first-ever major labor enforcement lawsuit on June 17th, targeting six companies including Ace Sushi Franchise Corp., Advanced Fresh Concepts Franchise Corp., Asiana Management Group, FujiSan Franchising Corp., and Fuji Food Products, Inc. The suit alleges these companies systematically misclassified grocery store sushi chefs as 'independent contractor franchisees,' denying workers overtime pay, paid sick leave, meal breaks, and workers' compensation coverage. Workers were allegedly logging more than 50 hours per week at single locations and over 70 hours weekly when assigned to multiple stores, while also being required to purchase their own supplies and equipment from the companies.
The grocery store sushi market nationally exceeds two and a half billion dollars in annual sales. The County is seeking unpaid wages, civil penalties, and an injunction. Legal observers note that if the case succeeds, the misclassification model it challenges — using franchise structures to deny employment protections — could set a template with implications well beyond the food service sector.
On the electoral front, the June 2nd primary established November runoffs for multiple San Diego City Council seats. In District 2 — covering Clairemont, Mission Beach, Ocean Beach, and Point Loma — Richard Bailey and Nicole Crosby advanced as the top two finishers, replacing termed-out incumbent Jennifer Campbell, with their general election matchup set for November 3rd. Runoffs are also set in Districts 4, 6, and 8, meaning four City Council seats will be decided in November, reshaping the Council's balance heading into 2027.