The state of California has officially assured the city of San Diego that the Midway Rising project can build an arena and other buildings higher than the 30-foot coastal height limit because it includes affordable housing.

After a Court of Appeal threw out the second ballot measure voters approved eliminating the 30-foot height limit for building along the coast for the Midway area, the developers of Midway Rising have insisted that the state’s density-bonus law would allow them to build higher, regardless. City leaders, though, has been conspicuously less confident. Now the state has told the city to roll with it.

In a letter to the city’s director of development services, Elyse Lowe, an official with the state Department of Housing and Community Development, answered a series of questions, including this one.

“The City’s question in this case is not whether it can grant an exception to the 30-foot height limit, but to what extent it may do so, particularly for the non-residential portions of the Project, including the sports arena,” reads the letter.

The answer is yes. If waiving the coastal building height limit helps the project make money that will be used to provide affordable housing, it can be built taller.

A main question though was whether separate buildings, in particular the new arena, were actually part of the project that needed to be taller. The state again said yes.

The letter, written by Melinda Coy, the chief of housing accountability for the state agency, concludes that the project as a whole could not go forward if the height limit was enforced. Thus the whole project must be allowed to go higher to ensure we get the housing.

“In sum, based on HCD’s understanding of the information presented by the City and Applicant, the Midway Rising Project qualifies as a ‘housing development’ for purposes of the SDBL, which makes the Project eligible for concessions and waivers as described above.”

Why this matters: Someone could still sue but this is the clearest validation yet of the developer’s theory that they never needed the lifting of the height limit at all to proceed with the project.

Related: You might have seen a story this week in the Union-Tribune about a dramatic change to the bill that state Sen. Akilah Weber Pierson had put forward to exempt the Midway Rising project from CEQA. It had been re-written. The U-T wrote: “If signed into law, the bill would override the court-imposed height limit in San Diego’s Midway District, making the project’s 165-foot-tall sports arena and 105-foot-tall residential buildings legally permissible.”

But it’s hard to see how the bill does that. It’s written for the future and doesn’t change the voter imposed height limit or the court ruling that it is still in place. It says that if your building a project and studying it’s environmental impacts “… the environmental impacts of a project that are associated with increased building height alone, including, but not limited to, air circulation, noise and light refraction or reflection, the potential to attract wildlife, or geotechnical or hydrological effects, shall not be considered significant impacts on the environment…”

In other words, if someone sues to stop a project like Midway Rising, for not adequately studying and mitigating its environmental impacts, they would not be able to cite the impacts of higher buildings. The court cited those things when it through out the voter-approved removal of the height limit.

We don’t know why the city and the senator are pursuing this. We fully expect the developers and the city to still pursue a state law that would essentially validate their environmental impact report and plans and prohibit people from suing to stop it based on the California Environmental Quality Act.

County Sales-Tax Coalition Submitting Signatures Monday 

Dispatch from Lisa Halverstadt: A coalition of labor unions and advocacy groups plan to submit signatures Monday in hopes of getting a countywide sales-tax hike on the November 2026 ballot. 

Dave Lagstein of Service Employees International Union Local 221, a leading force behind the initiative, said Friday that the coalition would turn in more than 167,000 signatures. 

The San Diego Health & Safety Act will need at least 102,923 valid signatures to make the ballot – and the coalition has sought more in hopes of automatically qualifying with a random sampling by the county registrar’s office. 

The proposed half-cent sales tax measure – which would raise a projected $360 million annually – aims to fund healthcare, child care, solutions to the Tijuana River sewage crisis and public safety.  

If approved, up to 60 percent of the tax hike – the equivalent of $261 million annually – could back child care and health services for children, health care for uninsured or underinsured people, food aid including staffing for CalFresh eligibility workers in the county, in-home health services and affordable health care.  

Nearly 23 percent – or roughly $81 million annually – would go toward combating the Tijuana sewage crisis. Proponents have made this line item a central argument for the measure but have yet to share specific plans for this funding. In the initiative filed late last year, they simply wrote that , at least 20 percent of this share of funds directed toward infrastructure projects to “stop sewage flows from Tijuana into the United States or through the Tijuana River Valley.”  The measure says the funding could also address related health issues and protect local waters from pollution.  

Nearly 18 percent – or almost $63 million annually – could back public safety services, wildfire prevention and crisis response.   

City with Less Water Power in the Future?

Dispatch from MacKenzie Elmer: Over bowls of soup at a meeting of the Albondigas South County club, I asked a panel of San Diego County Water Authority board members whether the city should retain the same amount of voting power once its huge wastewater to drinking water project comes online. The project would mean the city would be buying significantly less water from the Water Authority.

Otay Water District’s board president, Frank Rivera, was the only one to say, “no.”

The lunch room erupted in laughter and applause. Someone shouted, “hey Frankie, alright!” from the back. The panel, which also included Nick Serrano, San Diego Mayor Todd Gloria’s deputy chief of staff and the chairman of the Water Authority board, and Frank Hilliker, from Lakeside Water District and Serrano’s vice chair.

Up until that point, none of the panelists disagreed on much while discussing rising water rates and the Water Authority’s recent sales of its surplus to other parts of California. The crowd goaded them to argue about something.

Rivera’s resolute defection from supporting the city of San Diego represents growing cracks in the city’s ability to maintain power over the Water Authority as it rolls off its reliance on them. Smaller water districts have been complaining about San Diego’s advantage for years, and even tried to ask the state Legislature to get involved.

Right now San Diego gets 10 directors on the Water Authority’s board, far more than any of the other water districts. They represent 40 percent of the total vote on the board, which means San Diego can swing most decisions their way with the help of just one other water district.

The amount of water a district purchases from the Water Authority determines their voting power. But once San Diego’s Pure Water project starts churning out recycled water in early 2027, the city will have to buy a lot less from the Water Authority.

And maybe, they’ll have to relinquish some of their power, too. 

If you have any feedback or ideas for the Politics Report, send them to scott.lewis@voiceofsandiego.org or will.huntsberry@voiceofsandiego.org.

The post Politics Report: State Validates Midway Rising Theory appeared first on Voice of San Diego.

In an ever-changing and continuously evolving business climate, workforce demands have likewise transformed. The need for labor has moved beyond traditional and basic skill sets toward more specialized, technical, and complex competencies. As industries respond to shifting market conditions, customer expectations, technological advancement, and operational pressures, outsourcing has grown into a practical, lawful, and strategic business solution.

Today, outsourcing is no longer viewed merely as a support mechanism. It has become an essential component of enterprise strategy, allowing businesses to align their workforce capabilities with the demands of the marketplace. It enables companies to focus on their core functions while engaging qualified service providers to deliver complementary, specialized, or operational support services necessary for efficiency, continuity, and growth.

The relevance of outsourcing cuts across almost every sector of the economy. It is present in retail, manufacturing, hospitality, tourism, food and restaurant operations, logistics, healthcare support, facilities management, and even highly technical industries such as information technology. This broad application reflects the reality that service outsourcing has become deeply embedded in the modern business ecosystem.

For many enterprises, outsourcing serves as a vital operational formula. It provides flexibility, access to skills, cost efficiency, scalability, and continuity. More importantly, it helps companies respond to customer demands with greater speed, focus, and consistency. In this sense, service outsourcing is not merely an option; it is a business necessity that supports organizational growth, strengthens competitiveness, and enables enterprises to flourish in an increasingly demanding market environment.

The Evolution from Manpower Supply to Strategic Business Partner

The concept of service contracting has significantly evolved over the years. What was once commonly perceived as mere “manpower supply” has developed into a more sophisticated, structured, and strategic business solution. In the past, outsourcing was often associated with the deployment of personnel for temporary, routine, or support positions. The focus was largely on headcount, worker availability, and the ability to provide labor when required.

Service outsourcing now has evolved from activities primarily involving menial or basic work into a service model that now caters to more complex roles, including white-collar, technical, administrative, operational, and specialized functions requiring efficiency, accountability, and measurable results.

Today, service contracting has moved beyond simple headcount augmentation. It has become outsourcing with execution capability. Modern service providers do not merely supply people; they deliver specialized services, manage operational requirements, supervise deployed personnel, ensure compliance, and assume accountability for agreed service outcomes. This transformation reflects the growing complexity of business needs and the increasing demand for partners that can provide not only workers, but also systems, structure, expertise, supervision, and performance-based solutions.

This evolution is also evident in the shift from labor deployment to managed outcomes. Companies increasingly require service providers that can support actual business objectives, not merely provide bodies on site. It has has become a means to achieve measurable results.

Equally important is the integration of systems, supervision, and accountability. Responsible outsourcing involves workforce deployment supported by recruitment standards, onboarding procedures, performance monitoring, payroll administration, labor compliance, employee relations management, safety protocols, and supervisory controls. These elements distinguish legitimate service contracting from mere manpower placement.

Properly practiced, outsourcing becomes a strategic partnership that supports business continuity, enhances productivity, strengthens customer service capability, and contributes meaningfully to employment generation and economic growth.

Outsourcing and Global Competitiveness

Legitimate job contracting is a lawful and effective mechanism that helps protect employer competitiveness in a globalized and ASEAN-integrated business environment. In today’s market, companies compete not only with local businesses, but also with regional and international players that operate with speed, flexibility, specialization, and cost efficiency. For this reason, enterprises must be allowed to adopt legitimate business models that enable them to remain viable, productive, and responsive to changing market demands.

This becomes especially important in the ASEAN business environment, where companies must remain competitive in terms of cost, quality, speed, innovation, and service delivery. A rigid approach that weakens or disregards legitimate job contracting may place local businesses at a disadvantage, discourage investment, limit expansion, and reduce employment opportunities.

It must therefore be emphasized that the issue is not the existence of job contracting, but the distinction between legitimate service contracting and illegal labor-only contracting. The latter should be prohibited and penalized, but the former should be protected as a lawful, regulated, and necessary business model. When properly practiced, legitimate job contracting supports both employer competitiveness and employment creation, making it a vital instrument for business sustainability and national economic growth.

Industry Misconceptions

Service contracting is often viewed with suspicion because of past abuses linked to labor-only contracting, “endo,” wage circumvention, and unstable work arrangements. These concerns are valid when the arrangement is illegal or designed to defeat workers’ rights. However, it is important to distinguish unlawful labor-only contracting from legitimate service contracting, which is recognized and regulated under Philippine Labor Laws.

One common misconception is that all service contracting is a means to avoid regular employment. In legitimate arrangements, the service contractor is the direct employer of its workers and is responsible for recruitment, supervision, payroll, discipline, statutory benefits, and compliance with labor standards. Workers are not left without protection; they are covered by an employer that is legally bound to observe their rights.

Another misconception is that outsourced workers have no security of tenure. In truth, employees of legitimate contractors are likewise protected by law. Their employment cannot be terminated without just or authorized cause and due process. While their deployment to a particular client may change depending on business requirements and service agreements, their employment relationship with the contractor remains governed by labor laws and standards.

There is also a perception that contractors merely profit from workers. This overlooks the fact that legitimate service providers assume real operational and legal responsibilities, including hiring, training, supervision, HR administration, compliance monitoring, employee relations, payroll management, and service accountability. They are not mere middlemen; they are organized enterprises that support business operations while providing lawful and gainful employment.

DO 174: The Lawful Framework for Ending Abuse Without Ending Legitimate Outsourcing In the continuing discourse on labor protection, security of tenure, and the future of service contracting in the Philippines, it is important to recognize that the law has already established a regulatory framework intended to address the very abuses often associated with outsourcing.

Department Order No. 174, Series of 2017, issued by the Department of Labor and Employment, serves as a key instrument in combatting industry malpractices, particularly labor-only contracting, “endo,” and the so-called “5-5-5” employment practice. It was issued precisely to regulate contracting and subcontracting arrangements, prohibit labor-only contracting, and prevent schemes that impair workers’ rights and security of tenure.

The strength of DO 174 lies in its clear distinction between legitimate service contracting and laboronly contracting. It does not outlaw lawful outsourcing. Rather, it prohibits abusive arrangements where the contractor merely supplies workers, lacks substantial capital or investment, or does not exercise control and supervision over its employees. This distinction is critical because it protects workers from exploitative practices while allowing compliant contractors to continue providing lawful, gainful, and organized employment.

One of the most important contributions of DO 174 is that it directly addresses the concern on security of tenure. Under a legitimate contracting arrangement, the service contractor is the employer of the deployed workers and is responsible for observing labor laws, including the payment of wages, statutory benefits, general labor standards, due process, and lawful termination procedures. Workers cannot simply be dismissed at will. Their rights are protected by existing labor laws and regulations, and any termination must be based on just or authorized cause and must comply with due process.

For policymakers, this distinction must be carefully recognized. Any policy response must avoid treating all service contractors as violators. Such an approach risks punishing compliant businesses, reducing employment opportunities, increasing business costs, discouraging investment, and weakening industries that depend on legitimate outsourcing for operational support. The better policy direction is to strengthen enforcement against illegal labor-only contracting while protecting legitimate service contracting as a lawful, regulated, and necessary business practice.

The positive change introduced by DO 174 is that it professionalized the service contracting industry. It compels contractors to operate with structure, capital, systems, supervision, and accountability. It protects workers from abusive arrangements while preserving the legitimate role of outsourcing in business operations. In this sense, DO 174 serves both labor and business: it safeguards employee rights while allowing enterprises to remain efficient, competitive, and capable of generating employment.

PALSCON: A Partner of Government in Building a Compliant and Responsible Service Contracting Industry The Philippine Association of Legitimate Service Contractors, Inc., or PALSCON, stands as the prime industry leader and flagship organization of legitimate service contracting in the Philippines. It represents responsible and compliant service contractors that recognize outsourcing not as a means to defeat workers’ rights, but as a lawful and regulated business model that supports employment generation, business continuity, and national productivity.

PALSCON’s advantage lies in the fact that its members operate within the framework of law, regulation, and industry accountability. Unlike fly-by-night agencies that exist merely to supply workers, evade labor standards, undercut pricing, or disappear when obligations arise, legitimate contractors affiliated with PALSCON are expected to uphold compliance with labor laws, general labor standards, statutory benefits, due process, and lawful employment practices.

This distinction is crucial because the true violators are not legitimate service contractors, but unregulated and non-compliant operators that misuse contracting arrangements to the prejudice of workers, responsible businesses, and the integrity of the industry. Fly-by-night agencies damage the reputation of service contracting, distort fair competition through unsustainable pricing, and expose workers to unpaid wages, unpaid benefits, and unstable employment. PALSCON, by contrast, promotes responsible contracting anchored on capital, supervision, accountability, compliance systems, and employer responsibility.

As the collective voice of the legitimate service contracting industry, PALSCON supports government initiatives aimed at protecting workers and eliminating abusive practices such as laboronly contracting, “endo,” and arrangements that defeat security of tenure. The organization does not oppose regulation. On the contrary, it supports reasonable and effective regulation because it professionalizes the industry, raises standards, removes unscrupulous operators, and protects workers from exploitation.

What PALSCON seeks to prevent is the unfair treatment of all service contractors as violators. A broad and indiscriminate approach risks punishing compliant enterprises while allowing the real offenders to simply reappear under another name or business form. PALSCON therefore advocates for a balanced policy framework that targets abuse, penalizes violators, and preserves legitimate contracting as a lawful and employment-generating industry.

PALSCON also recognizes that worker protection must be pursued without unnecessarily encroaching on legitimate management prerogatives. Businesses must retain the right to organize operations, engage specialized services, manage costs, and remain competitive. At the same time, workers must be assured of lawful wages, statutory benefits, security of tenure, due process, and humane working conditions. These objectives are not conflicting; they can co-exist through a fair regulatory framework that protects labor while allowing businesses to remain viable.

In this context, PALSCON serves as an important partner of government and lawmakers. It provides practical industry perspective in the crafting of laws and policies affecting service contracting. Its advocacy is not to weaken labor protection, but to ensure that such protection is properly directed against abusive and non-compliant entities, rather than against legitimate contractors that provide lawful employment and support business operations.

Ultimately, PALSCON stands for a clear and balanced advocacy: protect workers, penalize violators, eliminate fly-by-night operators, preserve management prerogative, and sustain legitimate service contracting as a lawful and employment-generating industry. Its presence is essential in ensuring that the industry remains compliant, accountable, and aligned with both business growth and worker protection.

Preserving the Beauty and Legitimacy of Service Contracting

Legitimate service contracting must be appreciated for what it truly is: a lawful, regulated, and necessary business model that supports both enterprise growth and employment generation. It is not inherently antilabor, nor is it designed to defeat security of tenure. When practiced in accordance with law, service contracting provides workers with formal employment, statutory benefits, supervision, due process, and opportunities for livelihood across multiple industries. The beauty of legitimate service contracting lies in its balance. It allows businesses to remain efficient, focused, competitive, and responsive to market demands, while ensuring that workers are protected under existing labor standards. It bridges business necessity with social responsibility. It supports productivity without sacrificing legality. It enables flexibility without abandoning accountability.

In this continuing effort, PALSCON remains the prime industry leader of legitimacy. As a partner of government, a voice of compliant contractors, and a guardian of responsible outsourcing, PALSCON plays a vital role in ensuring that service contracting continues to serve the interests of business, labor, and the Philippine economy.

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Speaking in front of the delegates, Pioneer Insurance Group Head Lorenzo Chan called on delegates to turn insights into meaningful action that creates lasting change.

“This is not a corporate social responsibility effort. This is not a do-good mission where you feel good afterwards. This is a viable business proposition that empowers people and enables them to take control of their lives,” Mr. Chan said.

Bert Opdebeeck, founder of Microinsurance Master, said the initiative aims to inspire leaders from around the world by demonstrating that inclusive insurance models can be both impactful and sustainable.

“What Pioneer is demonstrating clearly is that you can do well by doing good, that you can scale microinsurance in a sustainable, profitable way while providing tremendous value to the people you serve,” he said.

In one of the Microinsurance Master learning sessions, Wilma Conde, Officer-In-Charge of the Microinsurance Division of the Insurance Commission of the Philippines, highlighted how microinsurance has become a key instrument protecting underserved communities, particularly those earning below the minimum wage who are often the most vulnerable to disasters, illness, and economic shocks.

Ms. Conde explained that the Philippines has developed a strong regulatory framework that ensures microinsurance products remain affordable, simple, and accessible while still providing meaningful protection for life, property, and livelihood risks.

Among the delegates, Mary Takavarasha, Manager for Insurance Prudential Supervision at IPEC in Zimbabwe, said the experience challenged conventional thinking in the insurance industry, “When you are dealing with microinsurance, you have to learn to unlearn. It’s not conventional insurance.”

Meanwhile, Leona Abban, General Manager for Partnerships at Impact Life Insurance in Ghana, noted that the Philippine model underscored the importance of building solutions around the realities of low-income communities.

“Start from the customer, understand where they are, how they operate, what they use, and then deliver the solutions,” Ms. Abban said.

Andrew Kulayige, CEO of Britam in Rwanda also emphasized the importance of adopting a different mindset when working in the sector.

“We cannot play in the microinsurance sector with a corporate mindset. We must play in that sector with a microinsurance mindset,” he said, adding that the lessons from the Philippines highlight how partnerships and community engagement can help expand financial inclusion in emerging markets.

The Philippines has become a regular venue for the international initiative. With Pioneer widely recognized as a global standard for microinsurance, the country has hosted Microinsurance Master in 2018, 2019, 2022, and 2024 before welcoming another cohort this year.

Over the years, Pioneer’s leadership in the field has already inspired 168 decision makers from 107 organizations in 49 countries, many of whom have returned to their markets with new approaches to expanding financial protection for low-income communities.

By continuing to open its doors to global practitioners, Pioneer reinforces the Philippines’ role as a learning hub for microinsurance and demonstrates how inclusive insurance models developed locally can help strengthen financial resilience in communities around the world.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Highlighted in this year’s participation is “The Carrier Air Authority Center,” the country’s first and only retail air conditioning (AC) franchise by Concepcion-Carrier Air Conditioning Company. Designed to democratize business ownership, the model brings world-class cooling solutions and expert services directly into local communities, leveraging Carrier’s legacy of over 100 years of global innovation.

The Carrier Air Authority Center introduces a dedicated avenue to support customers while complementing CIC’s established retail network. The model allows local business owners to become trusted cooling experts, backed by a tried-and-tested operating system.

“We believe the future of Philippine business is local,” said Phillip F. Trapaga, President of Concepcion-Carrier Air Conditioning Company. “The Carrier Air Authority Center is not only about service expansion, but about sharing our world-class operating standards and opening new opportunities for Filipino entrepreneurs to become true Carrier experts in their communities. We are committed to empowering a nationwide network of independent, thriving business owners who will elevate the standard of living in their own neighborhoods.”

The Carrier Air Authority Center stands out through its solutions-selling approach, moving beyond traditional product transactions to deliver long-term value for customers. Central to this model is a comprehensive 4-in-1 revenue stream designed to maximize customer lifetime value and ensure a steady, diversified income.
 
Franchisees can rapidly scale through:

• Product Sales: Offering globally trusted and highly efficient cooling solutions.

• Parts Revenue: Providing original Totaline parts that sustain long-term system performance.

• Installation Services: Building immediate customer confidence through expert, brand-certified installations.

• Maintenance & Repairs: Securing consistent, year-round cash flow by serving as the preferred provider for after-sales support.

This integrated strategy positions franchisees for sustainable growth while strengthening customer relationships at every stage of the ownership lifecycle.

To ensure unparalleled market focus for its partners, the program operates on a strict guarantee of territorial exclusivity: One municipality. One franchisee. “We are giving our partners the power to completely own their market with a proven system of play in place,” explained Ramon Antonio Medina, General Manager of Concepcion-Carrier Air Conditioning Company. “By granting exclusive territorial rights and unlocking our 4-in-1 revenue ecosystem, our franchisees can dedicate their resources to achieving a deep brand loyalty relationship with their community. Backed by our comprehensive support from set-up to technical training, they focus entirely on becoming the highly profitable, undisputed cooling authority in their city.”

Entrepreneurs and prospective partners are invited to explore the future of local business at the 2026 Franchise Asia Philippines International Expo. Visit the Carrier Booth at the 2^nd Level of SMX Convention Center to learn how the Carrier Air Authority Center can transform your entrepreneurial journey and bring world-class cooling solutions to your city.

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San Diego’s recently implemented trash fee has politicos and residents down in the dumps. But a new effort to repeal it could lay waste to the city’s already busted budget.

The chief complaint of the anti-fee crowd is the claim that the fee was a bait and switch. When voters approved the concept of a fee in 2022, city officials gave them an estimate of how much it would cost a month. What they ended up charging, though, was nearly twice as much as the original estimate. 

Some groups have seized on that opening, launching campaigns to repeal the tax altogether. There’s just one problem – the fee is bringing in a lot of dough. If the repeal-heads get their way, the trash fee’s nixing would blow an entirely new hole in the city’s budget, even as leaders try to dig out of an already massive deficit. 

Just how big a hole would it leave? Currently, the trash fee accounts for about 5 percent of city revenue. To put that into perspective, that’s equal to the entire city budget for libraries. 

Charles Modica, San Diego’s independent budget analyst, was blunt about the potential impact of the fee’s repeal: “The city would need to really have a real conversation about just picking a service that it is currently providing and not providing that service anymore.”

Read the full story here. 

Related: When city officials originally pitched the fee, they estimated it would cost voters between $23-$29 a month. But they didn’t chain themselves to that number. 

One reader pointed out some fine print on the item’s fiscal impact statement:“Given that a Cost of Service Study could take several years to complete, and the costs to provide this service may increase over the next several years, the actual fee levied could be higher.”

South County Report: About that State of the City

How much can $28,000 get you nowadays? Apparently, a fully-catered extravaganza featuring an opera singer, a Mission Impossible-themed intro video and a skydiver. 

Just ask Chula Vista Mayor John McCann, who on Tuesday rang in the State of the City with all of the above. And McCann, who’s running for re-election, has some things to celebrate. After all, it’s not just his State of the City that puts San Diego’s to shame. Unlike their neighbor to the north, Chula Vista’s finances are in good shape. It’s yet to be seen if that will be enough for voters in November.

Plus: County Supervisor Paloma Aguirre has built her political career on bringing attention to the Tijuana River sewage crisis. And boy, has she been bringing attention to it this election season.

On Wednesday, former United States Health and Human Services Secretary Xavier Becerra became the sixth wannabe-governor to visit the area to get a gander at the health hazard. 

Read the full story here.

Candidates Clash

It’s clashing season in local politics, as candidate debates begin to heat up in earnest. That means local newspapers will begin to fill with one of our favorite words: clash.

On Monday night, six candidates vying to replace District 2 City Councilmember Jennifer Campbell clashed over Mayor Todd Gloria’s Midway Rising plan and long-term plans for Liberty Station. 

Last week, four candidates running to represent City Council District 8, which represents San Diego’s southernmost neighborhoods, clashed over the Tijuana River sewage crisis and the need to revamp the San Ysidro border crossing. In District 4, Councilmember Henry Foster clashed with two challengers over the city’s lightning rod trash fee and homelessness. 

If you have deja vu, it’s likely because local candidates for decades have clashed over issues important to constituents. They’ve clashed over labor unions, they’ve clashed over jobs, they’ve clashed over vacation rentals and they’ve clashed over cops. They’ve clashed over graffiti and even clashed over trees and you better believe they’ve clashed over fees.

Heck, if the clash is quite fierce and the clashers like the bright lights, they may not only clash once, they may just clash twice. 

In Other News 

• Correction: Wednesday’s Learning Curve incorrectly identified Akila Weber Pierson as a California Assemblymember. She is a state Senator. D’oh.
• In 2022, Measure H passed with more than 68 percent support by San Diego voters. Four years later, the measure, which would have helped address a shortage of available child care, has hardly seen momentum. (Union-Tribune)
• April weather conditions across San Diego County have been warm and dry, making regions more prone to wildfires as summer draws near. Even with a wetter winter, firefighters hoped the region would receive more heavy rainfall. (Union-Tribune) 
• On May 17 from 10 a.m. to 2 p.m. Coast Highway 101 will be car-free and open for cyclists, pedestrians and more as Cyclovia Encinitas partners with the city of Encinitas’ Environmental Commission and Mobility and Traffic Safety Commission for a free event to explore Encinitas in a new way. (The Coast News Group)
• Senate Bill 958, is a bill currently being ushered through the state Legislature that focuses on making the proposed height for the Midway Rising mega project permissible. Plans for the project aim for a 165-foot-tall sports arena and 105-foot-tall residential buildings. (Union-Tribune) 

The Morning Report was written by Jakob McWhinney and Rami Alarian. It was edited by Andrea Sanchez-Villafaña.

The post Morning Report: Trashing the Trash Fee appeared first on Voice of San Diego.

Sergeant Jeremy Huff left the presidency as he entered it: quietly. 

The rank and file of San Diego Police Department elected Huff as the president of their union less than a year ago. But already, Huff has resigned. 

That’s because Police Chief Scott Wahl — who had a public feud with Huff — is trying to fire him, multiple sources in the department confirmed. 

Huff’s file with the department isn’t exactly clean. 

In 2021, he received a written warning for using unjustified force when he excessively punched a homeless person a year earlier, according to an internal affairs report. He also received the warning for not turning on his body worn camera.

More recently, Huff was also charged with falsifying his vehicle registration and lying to the Department of Motor Vehicles. It’s unclear exactly what led to the charges, but eventually the more serious of them were dismissed. Huff was convicted of a simple infraction for not having a registration and paid a $25 fine.

But Huff’s potential firing is also noteworthy for his public beef with Wahl.

The feud started after a video emerged in January showing an officer beating a man with his hands behind his head, who appeared to be offering no resistance.

The video quickly sparked outrage. 

During a radio interview, a host asked Wahl about the video. 

“In this particular case, I think there are things we could have done better,” he said. “We do have options that we could, and should be using at that point other than what was used.”

Huff responded to Wahl’s comments with outrage.

“Police use of force is always a reaction to someone’s actions. When someone complies with lawful orders, they get arrested or detained without incident,” Huff wrote. “[Wahl’s] statements have the potential to cause our members to second guess themselves during critical incidents where they only have a split second to make a choice. This doubt leads to bad decisions which can leave our members injured or dead.”

The statement war, as my colleague called it, didn’t stop there. Wahl shot back.

“Responding to a use of force incident by reaffirming my commitment to give officers the training, resources, and support they need to consistently meet the highest standard is not placing blame. It is part of being a leader,” he said.

Wahl added: “It is disappointing that the new [union] president chose to spend his first few days in office misconstruing my intent instead of working with me to better support our officers.”

Around two months after that statement, Huff received his termination papers. But the firing isn’t final. As with most public employees in California, Huff is entitled to multiple stages of due process.

I asked department officials whether Huff’s firing had anything to do with he and the chief’s public fight.

“The San Diego Police Department cannot comment on personnel matters. All Police Department employees are afforded due process regarding personnel issues,” wrote spokesperson Ashley Nicholes.

Huff also declined to comment.

During the incident that led to Huff’s written warning, he and another officer approached a man sleeping on a pedestrian bridge in Mira Mesa. This was in late February 2020, just weeks before the pandemic began.

Huff discovered the man had a warrant out for his arrest.

The man tightened his arms and tried to turn away when the two officers tried to arrest him. Huff believed the man hit him and Huff punched the man three or four times, according to an internal affairs report.

Huff wrestled the man to the ground and the man “refused to present his arms,” according to the report. Huff hit him in the face again.

That punch, not the earlier ones, counted as unjustified force, the report found.

Huff was also reprimanded because he did not turn on his body camera before or during the incident.

More recent court documents do not say exactly why Huff was charged with falsifying his vehicle registration.

A common version of that crime is for residents in California to register their cars in much cheaper states like Montana.

Eventually, city prosecutors dropped the charges against Huff — and he caught an infraction for not having a registration.

On its face, that would be a surprising reason to fire a cop.

In 2019, a statewide reporting project found that more than 80 cops were still working in California, despite having been convicted of many crimes ranging from animal cruelty to manslaughter and domestic violence.

One San Diego officer was charged with knocking his wife unconscious and kept his job, Voice of San Diego reported.

Since 2019, however, California’s laws have changed. A new law in 2021 established a process (one did not exist before) for revoking an officer’s certification.

Some of the reasons an officer’s certification can be revoked seem obvious, like abuse of power, physical abuse or sexual assault.

Another category of serious misconduct established by the law is dishonesty.

“Dishonesty relating to the reporting, investigation, or prosecution of a crime” all count, according to the commission on police training. “Intentionally filing false reports” is also mentioned.

During his time in the department, Huff was also involved in a shooting that prosecutors deemed justified.

Just days after the incident in which Huff beat the homeless man in Mira Mesa, he and another officer shot a different homeless man.

They were involved in an operation to clear an encampment in a park in the Otay Valley riverbed.

Huff ordered a man to exit his tent. When he made contact with the man he saw that he had a gun in his pocket. Huff ordered him to get down on the ground. Instead the man stuck his hand in his pocket.

Huff appeared to have fired one shot and the other officer 11, according to prosecutors.

The man sustained just three gunshot wounds, two to his arm and one to his leg, and lived.

Because the man reached for his gun, rather than getting on the ground, prosecutors deemed the shooting justified.

Officers recovered the man’s gun after the shooting. It was not an actual firearm; it was a BB gun.

Lieutenant Jared Wilson, the previous president of the San Diego Police Officers Association, was re-appointed to the post after Huff’s resignation.

The post Police Chief Tries to Fire Union Boss He Beefed With appeared first on Voice of San Diego.

Street homelessness fell 11 percent year-over-year across the county, according to the region’s latest annual census. 

The Regional Task Force on Homelessness, which oversees the annual point-in-time count held each January, also tallied a 12 percent increase in people staying in shelters.

This translated into an overall 1 percent decrease in homeless San Diegans counted during this year’s January census. 

The Task Force also reported a 6.6 percent drop in unsheltered homelessness in the city of San Diego. The group also cheered overall decreases in cities including Lemon Grove, Santee, La Mesa and the Encinitas area – and regionwide drops in unsheltered veterans, youth between 18 and 24 and people living in vehicles. 

In a statement, Task Force CEO Tamera Kohler attributed the reduction in unsheltered homelessness to efforts including state-backed Encampment Resolution Grant projects in communities including Lemon Grove, increased shelter options and a regional focus on diversion strategies to help people avoid or limit their reliance on the homeless service system. 

“This is what progress looks like,” Kohler. “We’re seeing good results where we’ve made investments.” 

But Kohler and the Task Force also pointed to challenges. 

Homelessness among seniors continued to spike this year. The Task Force reported that people over 55 made up a third of the unsheltered population. Among them during this January’s census was an 86-year-old Latina woman in Chula Vista. 

Kohler also noted the loss of crucial housing vouchers that have bolstered the region’s housing efforts and the uncertainty surrounding federal funding that has haunted homeless service providers for months.  

The Task Force separately reports many more San Diegans accessed homeless services during the past federal fiscal year. The nearly 23,000 people who received services was more than double the 9,803 counted during this January’s homeless census and remains close to last year’s tally of people accessing aid. 

The gulf between those two numbers drives home the reality that the point-in-time count represents a minimum snapshot of the region’s homeless population.  

During the same period, Task Force data also showed the number of newly homeless San Diegans eclipsed the number of newly housed ones by 212 people – a narrowing of the region’s years-long homelessness math problem.  

That gap continued in January, the month that volunteers fanned out throughout the county to tally people living in vehicles, canyons and on sidewalks. In January, 88 more people fell into homelessness for the first time than found homes.  

The post Annual Census: Street Homelessness Down 11% Countywide appeared first on Voice of San Diego.

San Diego’s budget could be in a lot of trouble if voters repeal the city’s trash fee.

City leaders say if that happens, their only option would be to cut up to $150 million from city services like stormwater, fire and police departments. Our hosts explain what’s at stake.

Also on the show: The county governance reforms are marching forward. But one state Senator says her fellow Democrats need to change the plan before it goes on the ballot.

Finally: Former Voice of San Diego reporter Ashly McGlone stopped by to talk about her new project Reconnaissance Man.

Before the Vietnam War America knows, James Lyle Steele, an original Marine reconnaissance man, was in it. Operating at the leading edge of a brutal, evolving conflict — poisoned bamboo, booby traps, tunnels, ambushes, and helicopter assaults— he faced a war that demanded constant vigilance. This episode offers Steele’s firsthand account of the war before most Americans realized it had begun, detailing the constant, deadly reality of his experience.

Listen Here Now

Listen: Apple | Spotify | PodLink

The post VOSD Podcast: The Meteor Heading for the City’s Budget appeared first on Voice of San Diego.

California’s Supreme Court last week determined the California Coastal Commission overstepped its authority in blocking a San Luis Obispo County housing construction permit, the latest blow to the agency following years of criticism for its role in blocking housing along nearly 900 miles of the Pacific Coast.

The 7-0 decision reversed the commission’s vote to block a developer from building four homes in Los Osos over habitat and water safety concerns. It changes little about the commission’s authority and governance, but comes after a series of pro-development appointees at the behest of Gov. Gavin Newsom and criticism that it has overstepped its 1976 charter to protect the coast from environmental degradation.

The judges said the commission didn’t have the authority to override the county’s coastal zoning laws.

The decision won’t have “significant implications for the commission’s program or authority,” spokesperson Joshua Smith said in a statement. 

Attorneys representing homebuilder Tim Shea said the ruling signals a broader willingness from the judicial branch to check the commission’s powers.

“For decades, both in the Legislature and in the courts, the commission was largely untouchable,” said Jeremy Talcott, an attorney with Pacific Legal Foundation, which represented Shea. “And, as we’ve seen now in both places, that’s no longer the case.”

Back in 2020, the commission appealed a permit the county had granted for Shear Development Co. to build four Los Osos homes because of water quality issues and concerns the construction would damage the local habitat in the sparsely populated, unincorporated town. 

Counties create their own coastal development with approval from the commission. San Luis Obispo and San Diego — which has the state’s largest coastal zone — both have commission-approved coastal plans. Typically the commission doesn’t interfere once those plans are in place. However, the commission can override local permits in special cases where it thinks the county is violating the state Coastal Act. 

The state Supreme Court said the commission exceeded its authority by blocking Shea’s project. A 2024 bill, Senate Bill 951, by San Francisco state Sen. Scott Wiener supports the court’s interpretation.

“Neither the County nor the Commission, as local and state entities respectively, should have greater deference accorded to their interpretations of the Coastal Act,” Chief Justice Patricia Guerrero wrote. All but one of the court’s justices were appointed by Democratic governors.

Housing advocates lauded the ruling as another blow to the commission’s authority.

Colin Parent, chief executive officer of Circulate San Diego, said the particulars of the ruling were less important than the court’s decision to take the case at all.

“This is just another example of a very important branch of California government weighing in favor of seeing some changes,” Parent said, following Newsom’s recent appointments and legislation seeking to curb its authority.

In October, Newsom appointed Jaime Lee, a wealthy Los Angeles real estate developer, to the commission and in May, Assembly Speaker Robert Rivas appointed Chula Vista Councilmember Jose Preciado. Preciado has been a vocal critic of the commission blocking  housing and supports more development.

State lawmakers continue to seek to chip away at the commission’s authority. Chula Vista Assemblymember David Alvarez authored a law last year, Assembly Bill 357, that loosens building restrictions for coastal student housing.

What I’m Reading Now

A bill to make it easier for San Diego to build a new stadium was amended to circumvent a court order that had blocked the stadium’s proposed height, The San Diego Union-Tribune writes.

Republican officials in El Cajon are suing over state laws limiting local authorities’ cooperation with federal immigration agents, from CBS 8.

The Los Angeles Times speaks to the underdog candidates in the race to lead the nation’s second-biggest city.

Thanks for reading the Sacramento Report, as always. Please reach me with any questions or comments: nadia@voiceofsandiego.org.

The post Sacramento Report: California Coastal Commission ‘Untouchable’ No More appeared first on Voice of San Diego.

SM Nuvali will be SM Prime’s fifth and largest mall in Laguna and its 91^st mall overall, the company said in a statement on Thursday.

“SM Nuvali marks the first of five flagship malls we plan to open annually from 2026 to 2030,” SM Prime President Jeffrey C. Lim said.

“This reflects our confidence in high-growth regional markets and our commitment to building integrated destinations that support long-term value creation,” he added.

SM Prime said the development is part of its strategy to invest in regional markets, citing demand driven by rising incomes, improved connectivity, and expanding urban centers.

The mall will offer more than 82,000 square meters of gross leasable area and will incorporate sustainability features such as solar panels, water recycling systems, and energy-efficient lighting.

SM Nuvali will also include 24 electric vehicle charging stations, a recycling program, and an e-waste collection facility, the company said.

The project will include open-air promenades, green zones, and lifestyle spaces in line with the Nuvali estate’s eco-community plan.

“We believe SM Nuvali can bring meaningful value to the Nuvali estate,” Mr. Lim said. “Its experiential attractions and tenant mix will help generate economic activity, create jobs and attract more investment into the region.”

The mall will feature a one-hectare indoor garden, playgrounds, a paw park, and nature-inspired areas, along with restaurants and global brands. It will be connected by a bridgeway to the Park Inn by Radisson and SMX Trade Hall, which are being developed by SM Hotels and Conventions Corp.

SM Prime said development of the NV Towers office project is also underway within the estate.

The expansion comes as the company reported a first-quarter net income of P11.66 billion, slightly higher than P11.65 billion a year earlier, supported by a 2% increase in consolidated revenues to P33.3 billion.

Malls remained the largest contributor, accounting for 61% of total revenues at P20.4 billion, up 8% from a year earlier, while rental income rose 8% to P21.6 billion on improved occupancy.

The residential segment generated P8.3 billion, down 14% year on year, while real estate sales fell 16% to P7.8 billion, reflecting slower revenue recognition and cancellations.

Hotel and convention center revenues rose 8% to P2.2 billion, while office revenues increased 10% to P2.5 billion, both on improved occupancy and bookings.

SM Prime said it is tightening capital spending and coordinating with tenants and partners as it responds to economic pressures, including higher inflation and interest rates linked to the ongoing Middle East conflict.

As of March, the company reported total assets of P1.1 trillion. Capital expenditures for the quarter reached P15.5 billion, down 9% from a year earlier.

On Thursday, shares of SM Prime fell 1.96% or P0.38 to close at P19. — J.C.A. Gonzales

In the National Government (NG) disbursement report released on Thursday, spending on infrastructure and other capital outlays fell by 29.2%, or P27.4 billion, to P66.4 billion in February from P93.8 billion in the same month in 2025.

Month on month, infrastructure spending nearly tripled from P22.3 billion in January.

For the first two months of the year, infrastructure spending plunged by 40.1% to P88.7 billion from P148.3 billion in the same period a year ago. This represents just 7% of the program this year.

Under the 2026 Budget of Expenditures and Sources of Financing, the Development Budget Coordination Committee (DBCC) projected spending on infrastructure and other capital outlays to reach P1.27 trillion in 2026. However, this excludes infrastructure subsidies and equities to government-owned and -controlled corporations as well as infrastructure transfers to local government units.

The DBM attributed the decline in the January-to-February period to delays in billing claims. It noted that most of the projects funded under last year’s budget are still ongoing, while the implementation of this year’s budget continues.

“It can also be noted that infrastructure disbursements during the first quarter of 2025 were relatively higher due to the frontloading of some expenditures and settlements of accounts payable ahead of the election ban during the time,” it added.

In the first two months, overall infrastructure disbursements dipped by 54.4% to P128.6 billion from P182.9 billion a year ago.

The DBCC earlier projected infrastructure disbursements to reach P1.558 trillion in 2026 or 5.1% of gross domestic product.

The DBM said it expects infrastructure disbursements to remain soft in the first half of the year, while spending could be driven by continuous implementation of a strict review and validation process for payment claims.

It said that disbursements will remain muted as “the base effects of large settlement of accounts payables in the first quarter last year persist, while the completion of projects carried over from the previous year is ongoing.”

“Nonetheless, the quality of infrastructure spending may benefit from the continuous implementation of a strict review and validation process for payment claims,” it added.

Last year, the country was rocked by a corruption scandal tied to flood control projects that implicated government officials, lawmakers, and contractors. This prompted the government to tighten monitoring of project implementation and completion status, but this caused delays.

As of end-February, the DBM said that the program balance amounted to P2.48 trillion or 36.5% of the total P6.79-trillion obligation program for the year.

The remaining balances consist largely of interest payments (P950 billion), agency-specific budgets (P915.2 billion), and special purpose funds (P577.5 billion).

“The bulk of the unreleased allotments of agency-specific budgets pertain to the infrastructure projects of the Department of Public Works and Highways, which shall be released through the issuance of a Special Allotment Release Order,” it added.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the decline in infrastructure spending reflects the government’s cautious spending “to at least prevent corruption.”

In the coming months, he expects the government to catch up on spending amid reforms in governance standards “that would help improve investor confidence.”

However, Mr. Ricafort warned that higher prices and inflation could push up the cost of various government projects, which “could be a drag, widen the budget deficit and increase the debt stock.” — Justine Irish D. Tabile

THE PHILIPPINES’ trade deficit in goods widened slightly in March as a record-high import bill driven by rising global energy prices offset the fastest export growth since late last year, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary data from the PSA showed the country’s trade-in-goods balance — the difference between exports and imports — stood at a deficit of $4.512 billion in March, widening by 0.1% from the $4.509-billion deficit in March last year.

Month on month, the trade gap ballooned from the revised $4.015 billion in February.

March saw the widest trade deficit in six months or since the $4.673-billion gap in September 2025.

Merchandise imports climbed by 12.3% year on year in March, slowing from the 17.9% expansion a year ago and the 16.6% growth in February. The import bill reached its highest since 1991 to $12.68 billion in March.

On the other hand, total outbound sales of Philippine-made goods increased by 20.4% year on year in March to $8.17 billion, faster than the 9% expansion in March 2025 and 8.9% gain in February.

PSA said the value of export sales in March was the highest recorded since the series began in 1991.

March also saw the fastest export growth in three months or since the 23.9% growth in December 2025.

“The slight widening of the trade-in-goods deficit in March was largely import-driven rather than a sign of export weakness,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said in a Viber message.

Mr. Asuncion said the growth in imports was driven by stronger demand for global electronics, elevated fuel and shipping costs, and normalized inventories as global financial conditions and supply chains improved.

For the first quarter, the trade-in-goods deficit widened to $12.81 billion from the $12.46-billion gap in the January-March period last year.

Exports expanded by 12.7% to $22.7 billion in the first three months of 2026, while imports rose by 8.9% to $35.5 billion.

George T. Barcelon, chairman of the Philippine Chamber of Commerce and Industry, said the trade deficit likely reflected firms replenishing inventories after typically running stocks low in the previous quarter.

“Because normally they’re low in inventory for December and for the last quarter, they’ll bring it up in the first quarter,” Mr. Barcelon said in a phone interview.

The Development Budget Coordination Committee projects both imports and exports to grow by 2% this year.

RENEWED DEMAND FOR IMPORTS
PSA data showed imports of raw materials and intermediate goods in March grew by 11.7% to $4.6 billion. These accounted for 36.3% of the total March import bill.

During the month, imports of capital goods rose by 16.6% to $3.83 billion.

“(The) broad uptrend (in imports of capital goods) remains intact, likely reflecting the re-awakening of public-sector capex from the late-2025 lull caused by the anti-corruption drive,” Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics, said in a research note.

“The total import print for March was salvaged unsurprisingly by helpful commodity price effects,” he added.

Imports of mineral fuels, lubricants and related materials jumped by 35.1% year on year to $2 billion.

Chinabank Research said in a note that purchases of mineral fuels surged, “largely due to price effects amid soaring global oil prices despite a drop in import volume.”

The imports of consumer goods fell by 7.6% to $2.19 billion in March, which Chinabank said is a sign of weakening consumer sentiment as high oil prices hit households’ budgets.

China was the top source of imported goods with a 27.6% share worth $3.5 billion. South Korea followed with an 11.3% share ($1.43 billion), Japan with 8.4% ($1.07 billion), Indonesia with 7.1% ($900.73 million), and the United States with 6.3% ($804.23 million).

AI-RELATED DEMAND FOR CHIPS
Electronic products, which cornered more than 70% of manufactured goods and more than half of March’s total exports, expanded by 33% year on year to $4.82 billion.

Semiconductors, which accounted for the bulk of electronic products and more than 40% of total exports, climbed by 38.2% to $3.7 billion in March.

“March’s export performance demonstrates that the government’s drive towards higher value products in high-performing industries like electronics while expanding market opportunities with targeted and strategic trade and investment promotion initiatives are helping exporters adapt to evolving global conditions and translating to export gains,” Trade and Industry Secretary Ma. Cristina A. Roque said in a statement.

For his part, Mr. Asuncion said the export performance was bolstered by the “gradual upturn in global demand for semiconductors and electronic components, particularly from advanced economies and key Asian markets.”

Chinabank Research noted that strong artificial intelligence (AI)-related demand could further support the local chip industry, but higher delivery costs have already pushed some local exporters to cancel some orders.

Chinabank Research also noted that exports of mineral products surged by 40.2%, led by gold and nickel. “In contrast, agricultural exports declined due to weaker coconut shipments. Looking ahead, limited fertilizer supply and the possible emergence of El Niño could weigh on agricultural output and export performance,” it said.

The United States was the main destination of locally made goods in March as exports to the country reached $1.4 billion, accounting for 17.1% of all outbound goods.

It was followed by Hong Kong with $1.3 billion (15.9% share), Japan with $962.41 million (11.8% share), China with $956.77 million (11.7% share), and Taiwan with $393.14 million (4.8% share).

DEFICIT TO WIDEN FURTHER
Meanwhile, Mr. Asuncion said the March trade figures will be broadly supportive of first-quarter economic growth.

“While net exports will likely remain a drag on headline GDP (gross domestic product) due to the trade deficit, the strong growth in exports points to a solid contribution from manufacturing and external demand,” he said.

He added that higher imports of capital goods and inputs suggest “healthy investment and production activity.”

The PSA will release the first-quarter 2026 GDP data on Thursday, May 7.

However, the outlook remains clouded by geopolitical risks.

“We’re not in a recession, but we could gradually be heading there if global geopolitical tensions remain unresolved,” Mr. Barcelon said.

Crude oil prices remain elevated amid concerns over a prolonged Middle East conflict.

“With no clear resolution to the Middle East conflict in sight, rising crude oil prices are likely to continue pushing up the country’s import bill in the near term, widening the trade deficit. This, however, reflects mainly price effects, as import volumes will continue to decline,” Chinabank Research said.

Chinabank Research said a ballooning trade gap could also put additional depreciation pressure on the peso.

“The trade deficit is likely to persist in the near term, reflecting the country’s import-intensive growth structure. From a macro perspective, this is manageable as long as the deficit is driven by productive investments and export-related inputs, which appears to be the case so far,” Mr. Asuncion said.

THE PHILIPPINES’ agricultural output likely contracted in the first quarter of 2026, weighed down by a drop in major crops such as rice, and continued weakness in fisheries and livestock subsectors, analysts said.

Former Agriculture Secretary William D. Dar told BusinessWorld that he expects farm sector output to shrink by about 3% in the January-to-March period. If this projection is realized, it will be a reversal from the 2% growth recorded in the same period last year.

“For the first quarter of 2026, there will be a decline of about 3% compared to the first quarter of 2025. Livestock and fisheries are always declining,” Mr. Dar said in a Viber message.

The Philippine Statistics Authority (PSA) is set to release the first-quarter agriculture output data on May 6, a day ahead of the gross domestic product (GDP) data. Agriculture contributes about a tenth to the Philippines’ GDP and roughly a quarter of total employment.

Raul Q. Montemayor, national manager of the Federation of Free Farmers, told BusinessWorld that the projected decline in agricultural output was largely driven by lower rice output, which accounts for roughly 30% to 40% of the total crop production by value.

In a report on Thursday, the PSA said palay (unmilled rice) production fell by 6.26% to a six-year low of 4.4 million metric tons (MT) in the first quarter from 4.7 million MT a year earlier.

Mr. Montemayor said weak farmgate prices in the latter half of 2025 have dampened farmers’ incentive to plant, contributing to the lower harvest.

“The palay harvested in the first quarter of 2026 was planted in the last quarter of 2025, during which time palay prices were severely depressed, even with the import ban,” he said.

Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., said the country’s farm output was also affected by damage to a major irrigation system in Nueva Ecija late last year.

He said the disruption affected about 30,000 to 40,000 hectares of farmland in the country’s top rice-producing province.

“While the National Irrigation Administration tried to catch up on the repair, recovery of the planted areas affected by a lack of irrigation will be delayed, pushing the harvesting of palay to the second quarter,” he earlier told BusinessWorld.

Meanwhile, Mr. Dar also cited delayed distribution of seeds and fertilizers, uneven government support across subsectors, and weak mobilization of extension services as additional factors that may have dampened first-quarter output.

HOG SECTOR RECOVERY
Meanwhile, Alfred Ng, vice chairman of the National Federation of Hog Raisers, said that despite weak livestock performance in the first quarter, the hog industry may see improvements in the coming quarters.

Production continues to be affected by the African Swine Fever, he said, but government support is expected to aid recovery.

“Since the Department of Agriculture (DA) has given a budget of P1.6 billion for repopulation this year, hog production will certainly be expected to go up soon,” Mr. Ng told BusinessWorld via Viber.

He said the budget could fund the procurement of 40,000 gilts, potentially adding 29 million kilos of pork annually.

Mr. Ng also cited Republic Act No. 12308, or the Animal Industry Development and Competitiveness Act, enacted last year, as a key measure supporting the sector’s rebound.

Hog production accounts for about 80% of total livestock output by value. In 2025, hog production was estimated at P246.42 billion, the lowest level since the P189.57 billion recorded in 2001, based on PSA data.

FULL-YEAR CONTRACTION
Analysts warned that the agriculture sector may face continued challenges for the rest of the year, raising the risk of a full-year contraction.

“[There are] tremendous headwinds we will be facing in the next three quarters of this year, such as high fertilizer prices, fuel and transport costs, and a possible severe El Niño,” Former Agriculture Undersecretary Fermin D. Adriano told BusinessWorld via Viber.

Agriculture output had expanded by 2.6% in 2025, the fastest pace in eight years, mainly due to gains in crop output and a strong poultry performance.

The DA earlier said palay output could dip to about 18.6 million MT to 18.8 million MT if the prices of fuel and key agricultural inputs, particularly fertilizer, remain elevated through the next cropping season.

If production falls to 18.6 million MT, this would be the lowest palay output since the 17.62 million MT recorded in 2016.

The DA said it is also closely monitoring the potential impact of the developing El Niño, which could further reduce yields in the coming months.

In 2024, farm output contracted by 2.1% when the agriculture sector was affected by drought and dry spells caused by the El Niño which began in June 2023.

In a statement on Wednesday, the agency added that it is coordinating with regional offices and other relevant agencies to assess vulnerabilities and deploy early interventions ahead of the developing El Niño.

The DA said measures include prepositioning inputs such as drought-tolerant seed and assessing irrigation systems in major service areas to anticipate potential water shortages and adjust allocation schedules.

Agriculture Assistant Secretary Arnel V. de Mesa told reporters on April 21 that palay output losses for the second cropping season could reach 20% in a best-case scenario and up to 50% in a worst-case scenario.

To mitigate risks, the DA said it is exploring the use of biofertilizers as a cost-effective alternative to fuel-based inputs.

Mr. de Mesa said P500 million of the DA’s P1-billion Quick Response Fund, activated following the declaration of the state of national energy emergency, will be used to procure biofertilizers ahead of the next cropping season.

In its month-ahead inflation forecast, the BSP said inflation may have further quickened to between 5.6% and 6.4% in April from the 1.4% print a year ago and 4.1% in March.

At the upper end of the forecast, inflation may have surged to its fastest pace in three years or since the 6.6% in April 2023.

At the bottom end, inflation would still be the fastest print in over two years or since the 6.1% clip in September 2023.

If the forecast is realized, April would mark the second month in a row that annual inflation settled above the 2%-4% range.

April inflation is scheduled to be released on May 5.

“Inflation risks have intensified amid upward price pressures from significantly higher domestic petroleum prices, rising prices of key food items such as rice, fish, and meat, increased electricity charges, and the peso depreciation,” the central bank said in a statement.

Fuel prices remained elevated in April as the conflict in the Middle East continued. The Philippines is a net oil importer, with nearly all of its oil supply coming from the Middle East.

Year to date, net price increases reached P44.23 per liter for gasoline, P48.96 for diesel, and P57.99 for kerosene.

Power rates have also gone up. Manila Electric Co. raised rates by P0.5335 per kilowatt-hour (kWh), bringing the overall rate to P14.3496 per kWh for April, citing higher generation costs linked to the peso depreciation.

The peso closed at P61.485 against the dollar on April 30, weakening by 73.7 centavos from its P60.748 close on March 31. It hit a record low of P61.567 on April 29.

At the same time, rice prices continued to climb in April, with the average cost of regular milled rice rising by 15.9% to P51.53 in the April 15 to 17 period from P44.44 a year earlier.

The price of well-milled rice jumped by 15.3% year on year to P58.88 a kilo, while the price of special rice climbed by an annual 9.8% to P66.23 per kilo.

“The anticipated decline in vegetable and fruit prices may help temper inflation, but sources of upside price pressures continue to warrant close monitoring,” the BSP said.

The central bank said last week that it now expects inflation to average 6.3% this year and 4.3% next year, both above its tolerance band.

The BSP said it will stay vigilant and continue to monitor recent developments in the Middle East for their impact on inflation and economic activity.

Last week, the central bank hiked its policy rate for the first time in over two years, bringing the benchmark to 4.5%.

Meanwhile, ING Economics said on Thursday that it expects inflation in the Philippines to rise above 5% in April.

“This will be driven by the continued pass-through of higher global oil prices into domestic prices and emerging second-round effects,” it said. “Higher rice prices are also likely to contribute to the uptick in food inflation.”

In an April 30 note, Metropolitan Bank & Trust Co. (Metrobank) said that it expects headline inflation at 5.6% in April, with oil as the main driver.

“With how critical oil and fuel are to food production, oil inflation likely impacted food prices as well… Moreover, Metrobank expects meat to enter positive inflation in April after two months of year-on-year price declines, as high oil prices begin to outweigh supply for meat products,” it added. — Justine Irish D. Tabile

It’s a bird, it’s a plane… It’s Chula Vista’s State of the City event! 

Mayor John McCann on Tuesday staged a State of the City that still has us reeling. 

The event began with a Hollywood-style video starring McCann in a madcap race to get to the speech on time – culminating in him leaping out of an airplane and parachuting toward the city.

As the film ended, an actual airplane (this is not a joke) appeared overhead and a skydiver (still not a joke!) descended toward the crowd of roughly 200 residents and dignitaries gathered at the city’s Elite Athlete Training Center. The skydiver landed in a nearby field and McCann strode onto the stage in a tuxedo accompanied by theme music from Mission Impossible.

It may not shock you to learn McCann is running for re-election this year. 

The event also had all the hallmarks of an average State of the City address, with its shoutouts to corporate sponsors, heartwarming personal anecdotes and an exhaustive list of civic progress. But it had so much more. 

Opera baritone Manuel Vera joined McCann onstage to belt out God Bless America while McCann draped medals over the leaders of Chula Vista’s veterans organizations. (McCann is a United States Navy veteran and current reservist.)

McCann couldn’t resist a dig at his big-city counterpart, Todd Gloria. He pointed out that Chula Vista this year balanced its budget with no new taxes, no cuts in services and fully funded its reserves.

“And no parking fee increases,” McCann added, to widespread laughter.

No word on whether McCann is willing to loan his parachute to Gloria. It might come in handy this budget season.

El Cajon Sues to Overturn State Sanctuary Policies

The city of El Cajon is partnering with the conservative America First Policy Institute to sue the state over its immigration policies. The suit claims the state’s policies “induce and encourage illegal aliens to reside within [California’s] borders.”

The lawsuit, filed in San Diego County Superior Court, also says state sanctuary policies place cities in legal jeopardy by forcing them to limit cooperation with federal immigration agents. 

Last year, The El Cajon City Council voted 3-2 to begin cooperating with federal immigration authorities, in defiance of state policy. The vote has led to ongoing protests.

“Sacramento has spent years telling cities like El Cajon to fall in line with sanctuary policies that put our residents at risk,” Mayor Bill Wells said on social media shortly before the lawsuit announcement. “They assumed nobody would push back. They assumed wrong.”

In a statement, California Attorney General Rob Bonta said, “El Cajon should prepare for another loss… [California’s sanctuary law] has been upheld in court again and again, and we’re prepared to defend it from a baseless attack once more.”

The Tijuana River Is Having a Political Moment

The humble and terribly polluted Tijuana River has become a must-stop destination for candidates seeking to lead California. 

Xavier Becerra, the former Biden cabinet member, became the latest candidate for governor to tour the much-abused river on Wednesday at the invitation of San Diego County Supervisor Paloma Aguirre.

Becerra is the sixth candidate to visit the river this year. Aguirre has pressed each of them – successfully, so far – to promise they would declare a state of emergency at the river, if elected.

Becerra, who as California Attorney General sued the federal government in 2018 to demand action on the river, said he was prepared to declare a state of emergency. But he did hedge. He said he would do so only if he felt the state was ready to make an immediate difference.

“If you declare a state of emergency, you have to deliver,” he said.

Senator Wants to Assign Schools New Math Homework

State Sen. Akilah Weber Pierson’s out with a bold proposal: giving California kids another test.

Let’s back up a bit. Statewide, kids aren’t doing great in math. Slightly more than a third of students are meeting stade standards on tests and they still haven’t made up deep pandemic-era learning losses. 

Weber Pierson is proposing a bill to create a math screener for kids in kindergarten, first and second grade that – the thinking goes – would catch kids who are struggling with math before they fall too far behind to catch up. It also would require schools to offer additional supports to kids who aren’t up to snuff in math.

But like recent efforts to revamp California’s literacy curriculum, not everyone is on board with this new proposal. California’s powerful teachers unions have already come out in opposition, making the bill’s climb a steep one.

Read the full Learning Curve here. 

In Other News

• Candidates vying to replace outgoing North County Supervisor Jim Desmond showed no love this week for two top county issues: a proposed sales tax increase and an overhaul of county government that would award current supervisors another term in office. All four candidates, including Democrats, panned the measures, which are supported by the Board of Supervisors’ current Democratic majority. (Union-Tribune)
• Chula Vista is preparing to release the first of a series of bi-annual reports documenting interactions between city police officers and federal immigration agents. The reports are required as part of an immigration ordinance the City Council approved earlier this year. (KPBS)
• Y’all, maybe don’t fly drones near the airport, OK? A United Airlines pilot reported spotting one beneath his airplane as it landed Wednesday. The drone was so close, the pilot thought he hit it. Luckily, he didn’t. (Union-Tribune)
• Who’s supporting and opposing Measure A, a city of San Diego ballot measure that would tax second homes? inewsource has the details. No surprise: The California Association of Realtors is leading the charge against the measure. (inewsource)

The Morning Report was written by Jim Hinch and Jakob McWhinney. It was edited by Will Huntsberry.

The post Morning Report: State of the City Like No Other appeared first on Voice of San Diego.

Forget the current budget deficit.  

If voters repeal San Diego’s trash fee, city leaders say their only option would be to cut up to $150 million from city services like stormwater, fire and police departments. 

“Outside of new revenue coming in, there’s no other option,” said Charles Modica, the city’s Independent Budget Analyst. 

A business advocacy group is pitching a ballot measure that would remove the fee for fiscal years 2028 and 2029. They need 21,000 signatures to get the repeal on the November 2026 ballot – far fewer than other signature-gathering efforts. 

“The effort is off to a fantastic start,” said former Mayor Kevin Faulconer, who is leading the repeal on behalf of the Lincoln Club Business League. He didn’t say how many signatures the group has gathered. 

While the former mayor says the city needs to repeal the fee and scale back its spending, Mayor Todd Gloria and other city leaders say the repeal could result in a big blow to the city’s budget. 

“The magnitude of those cuts is going to be significant,” said Modica. 

Modica said the money generated from the trash fee is about 5 percent of the city’s budget.  That is more than what the city spends on the library system in a year, and about what it spends on its network of sidewalks and streetlight, he said.  

“The city would need to really have a real conversation about just picking a service that it is currently providing and not providing that service anymore,” Modica said. 

Since 1919, a law known as the People’s Ordinance required the city to collect trash, without charge, from any home with direct access to city streets. The city paid for trash pick up out of its general fund. 

In 1981 and 1986, voters amended the People’s Ordinance to prevent city officials from ever charging fees for city trash collection. In 1981, voters declared that residential trash collection would remain free, although there could be a fee for industrial and commercial waste. In 1986, voters approved an amendment that would require residents who live on private streets or multi-family homes like apartments to pay private haulers to collect their trash.  

Single-family homeowners with access to city streets continued to get trash picked up without paying a fee. 

In 2022, voters narrowly approved Measure B, a new amendment to the People’s Ordinance that allowed the city to start recovering costs.  

The amendment also clarified which properties are eligible to receive city-provided services. This includes properties on public streets that are not mixed-use or commercial. City workers will also only pick up trash at lots with one to four residences maximum.  

City officials estimated the fee would be between $23-$29 per month per customer when they put Measure B on the ballot. But a cost study later revealed that the fee needed to be higher, so the City Council opted for a much higher fee of $43.60 last summer. 

The full cost for the year turned out to be between $32.82 and $43.60. The fee also increases each year. When people got their tax bills, they were furious.  

A group of homeowners sued the city, alleging officials are charging more than what it costs to pick up trash. A judge recently denied the city’s request to dismiss the lawsuit.  

“The ability to charge for trash barely passed at the ballot box,” said Faulconer. “If the city would’ve told people it was going to be double what they said it was going to be, it wouldn’t have passed. That’s, again, why people are angry and rightfully so over a bait and switch.” 

At least one councilmember, also agrees that the City Council should have never doubled the fee. Henry Foster – along with Councilmembers Raul Campillo and Marni von Wilpert – voted no on the fee last June.  

In a recent candidate forum, Foster said he would like to lower it to the estimate the city offered voters when Measure B passed. 

“We need to right our wrongs. We need to take care of our structural deficit, but we need to take the trash down to $29 — no more,” said Foster. 

Modica said two factors increased the fee.  

First, the Environmental Services Department had historically estimated its customer base was much larger. The department thought it served around 285,000 addresses. Since the department didn’t bill households, it didn’t keep track of which households it served. 

A cost-of-service study by the Environmental Services Department in 2022 revealed it served a little over 222,000 addresses. Essentially, there would be fewer families paying the fee and yet the cost of providing the service was going to increase.   

“The denominator by which you would divide the total costs of our things was smaller, which results in a higher fee,” said Modica.  

Just on that point alone, the city would have needed to increase the cost from $29 to $37 per month to recover all of its costs, a report by Modica’s office found last year.  

Modica said the fee also increased because costs are increasing across the board. Vehicles cost more. So does their maintenance. City workers’ pay has also gone up.  

When Measure B first passed, the baseline operating cost for trash collection was about $98.3 million. That number increased to more than $120 million this fiscal year.  

This year, the fee has generated approximately $117 million. The Environmental Services Department estimates the fee will generate approximately $123.9 million next year, which is about $9 million less than officials expected.  

Jordan More with the independent budget analyst office said that’s because some people are returning their additional bins or opting for cheaper bins.  

Homeowners can choose from a wide range of trash bins. The cheapest option is $32.82 a month for a 35-gallon trash bin. The most expensive option is $43.60, which gets you a 95-gallon trash bin. All the options come with bins for recycling and organic waste. 

The money from the fee goes into something called the solid waste management fund. Dollars that go into this fund can only be used to pay for waste management related activities. This essentially frees up money in the general fund to be spent on other city services.  

That could all change soon with the repeal effort.  

Faulconer said he isn’t concerned about the hit to the general fund.  

“This city survived for a hundred years without having to charge people for trash or having to charge families to go to Balboa Park. It’s about priorities,” he said. He also said city officials can invest in public safety and employees “without having to fee and tax San Diegans to death.” 

City officials need to cut back their spending, and focus on reducing middle managers, or unclassified employees at the city, Faulconer said.  

Mayor Gloria, however, is very concerned.  

“Eliminating the solid waste collection fee or further reducing parking revenue will come at the expense of the general fund,” he said. “The sum total of those two things combined exceed the deficit that we’re closing right now. Basically, you would double the challenge we are currently grappling with. It is real. Where would that come from? Well suddenly we’d be right back to where we are today. Where things we are currently doing our best to protect, specifically public safety, police and fire, would have to be up for deeper reductions.”  

The post The Giant Meteor Heading Toward the City of San Diego’s Budget appeared first on Voice of San Diego.

Attendees of Chula Vista’s annual State of the City speech Tuesday had every reason to wonder what exactly they were viewing. 

Was it an annual update on the city’s progress? A Hollywood production? A Broadway show? 

I described some of the eye-opening special effects kicking off the event in Voice of San Diego’s Morning Report today. 

If you weren’t there, you missed: A Mission Impossible-style introductory film starring Mayor John McCann; a skydiver parachuting from a plane over the Elite Athlete Training Center, where the event took place; opera baritone Manuel Vera belting out God Bless America while McCann awarded medals to leaders of the city’s veterans organizations; and lots more. 

The frills were fun. (And controversial in the eyes of the mayor’s Democratic critics, who rolled their eyes and asked who paid for it all.) 

For the record, I asked the mayor’s staff how much the event cost and who paid. Amanda Fredeluces, McCann’s chief of staff, said the roughly $28,000 cost of the event was paid entirely either by McCann himself or by corporate sponsors, including Seven Mile Casino, Neighborhood National Bank, Cox Communications, the HomeFed Corporation and Republic Services. 

The Elite Athlete Training Center is owned by the city, so there was no rental fee, Fredeluces said. Sponsors covered the $11,605 cost of catering and other event fees, as well as the cost of the Mission Impossible-style video, she said. 

Sponsors also paid for the skydiver, though McCann himself paid the cost to jump out of an airplane during filming of the video, Fredeluces said. 

Fredeluces called the event a success and said close to 500 people attended. 

Strip away the extras, and the mayor – along with his fellow City Councilmembers and the city’s roughly 1,000 employees, who execute Council policy – actually do have a good story to tell. 

Chula Vista is surrounded by cities in fiscal distress. National City faces a mounting deficit and just appointed its second interim city manager amid a protracted search for permanent leadership at City Hall. 

San Diego’s budget woes are epic, and well-publicized. 

Chula Vista, meanwhile, balanced its budget this year with no tax increases, no cuts to public services and fully funded reserves. 

The city hit other milestones too. 

The Council approved yet another large-scale development at the city’s rapidly evolving bayfront. 

The Port of San Diego, in conjunction with the city, broke ground earlier this year on an expansion and upgrade of much-beloved Harbor Park. 

The city opened two new fire stations, signed an agreement with San Diego State University to begin offering four-year nursing degrees at the city’s soon-to-be-opened Millenia Library, broke ground on a new permanent housing facility for homeless residents and approved a new park that will honor Filipino American military veterans. 

Though the city reported lower than expected hotel tax revenue this year amid regionwide economic uncertainty, McCann said the city’s recently opened Gaylord Pacific Resort and Convention Center nevertheless ranks as the third-highest revenue-generating property in the Marriott corporation’s entire worldwide portfolio. 

When McCann, in his speech, called Chula Vista “an undisputed economic engine and regional leader,” he wasn’t just bragging. 

In a recent interview, McCann said he plans to make his city’s record of accomplishments a central theme in his upcoming re-election campaign. The success of that tactic will depend on what voters care about most this year. 

Chula Vista Elementary School District Trustee Francisco Tamayo (who attended Tuesday’s event and was one of the eye-rollers) is McCann’s main opponent in the city’s mayoral race. He has signaled he intends to make the race a referendum on the mayor’s reluctance to comment on immigration issues. 

And he has vowed to turn the city’s recent successes into a negative for the mayor by highlighting the extent to which Chula Vista’s rise is making the city unaffordable for residents. 

McCann ended his speech on an inspirational high note, trying out a new slogan to complement his usual “this is Chula Vista’s decade.” (He said that too.) 

“Today’s accomplishments are tomorrow’s legacy,” he said at the speech’s conclusion. 

The accomplishments are real. The legacy remains to be seen. 

The Tijuana River Gets It’s Moment in the Gubernatorial Spotlight 

The humble, much-polluted Tijuana River has gained an unlikely new identity this year. It’s a must-see whistlestop for Democratic candidates running for California governor. 

Former United States Health and Human Services Secretary Xavier Becerra on Wednesday became the sixth gubernatorial candidate to visit the river this year at the invitation of San Diego County Supervisor Paloma Aguirre. 

Aguirre, whose personal charm belies an almost ruthless strategic ability to strongarm powerful people into doing what she wants, has conducted these candidate tours of the river’s smelly shoreline with a clear goal in mind. 

From each candidate she has extracted a promise to declare a state of emergency at the river the moment they are elected to office. 

Aguirre contends a state of emergency declaration would enable a similar declaration from the federal government, which in turn would free up funding and grease bureaucratic wheels. 

That’s debatable. Not in dispute is Aguirre’s success in propelling each candidate toward seeing the river as she sees it: As a major issue requiring an immediate response. 

Becerra, a far more careful and considered politician than some of the other candidates who have visited the river, took some convincing. 

He asked a lot of detailed questions and seemed quite familiar with many of the larger policy implications. He voiced skepticism about the value of an emergency declaration without funding to back it up. 

He listened attentively as a roundtable of local doctors, public health experts and residents (all selected by Aguirre) explained the severe health impacts of river pollution on South County’s most vulnerable residents. 

In the end, they convinced him. 

“I’d be prepared to declare a state of emergency,” Becerra said. “These declarations don’t automatically bring the funding. It does free up hurdles.” 

Aguirre seemed to relax. Becerra’s tour ended with the discussion roundtable at Arandas Café, next door to El Tapatio, a local Mexican restaurant institution. 

Aguirre introduced Becerra to Arandas founder Celia Aranda, who, along with her husband, Victor, started El Tapatio as a taco stand in 1979 and later expanded to opening Arandas, a gourmet breakfast and lunch café, next door. 

Becerra, who grew up in an immigrant family in Sacramento, chatted with Celia about her business in Spanish and asked how river pollution affects her. A lot, said Celia. Aguirre, formerly mayor of Imperial Beach, beamed. 

Notch another win for the strongarm charm offensive. 

In Other News 

Deputy Mayor Cesar Fernandez on Monday signed into law a new ordinance that strengthens city protections for immigrants and requires regular updates on city police interactions with federal immigration authorities. The measure, approved by the City Council earlier this year, comes as South County cities grapple with the effects of the Trump Administration’s ongoing immigration crackdown. 

U.S. Rep. Juan Vargas announced earlier this month he and other San Diego-area members of Congress are asking for $100 million in next year’s federal budget for infrastructure upgrades to reduce pollution in the Tijuana River. 

Two bills authored by state Sen. Steve Padilla that together constitute some of the nation’s strongest protections for young people who use A.I. chatbots advanced through key legislative committees this month on their way toward consideration by the full State Senate. The bills would restrict advertising and require safeguards to prevent chatbots from encouraging suicide or hooking children on protracted conversations. 

The recently authorized South County Higher Education Planning Taskforce this week will begin gathering public input and sketching out plans for an envisioned four-year university in the city of Chula Vista. The taskforce holds the first in a series of public meetings beginning at 10 a.m. Friday at Chula Vista City Hall. More information here. 

The post South County Report: State of the City and Then Some appeared first on Voice of San Diego.

This post has been updated.

San Diego-area state Sen. Akilah Weber Pierson wants to assign California educators some new homework: screening kids for math competency.  

A new bill authored by Weber would require schools to perform math testing for students in kindergarten, first or second grade. It would also require educators to offer extra support to students whose math skills are behind where they should be. 

A number of safeguards to more narrowly focus the screenings are also written into the bill. Those include the stipulation that scores could not be used to evaluate teachers or identify students for gifted programs. Students’ math skills are already tested in third grade. But in pitching the bill, Weber Pierson argued that disparities begin even earlier than that. 

“By that time, many students who are struggling with foundational math skills have already fallen behind,” Weber Pierson said. 

The effort is aimed at evening the incredibly uneven playing field of early childhood education. Some kids who enter the public school system may have already had years of more focused math education. Many of those who start behind, stay behind.  

“Unless those students get intervention, the gap will widen. It’ll be harder for them to access higher-level math classes later on, and this will have implications for future job opportunities and the economic future of California. It’s a continual closing of opportunities,” Alice Klein, the research director at WestEd told CalMatters. 

But like the reading curriculum reforms signed into law by Governor Gavin Newsom late last year, the new math framework could face some stiff opposition. That signing capped years of a contentious back and forth debate in Sacramento during which multiple bills aimed at changing how we teach kids to read crumble under pressure.  

Like some of those earlier literacy bills, the powerful California Teachers Association opposes Weber Pierson’s math bill. In their telling, lawmakers should wait to see how the state’s new math framework impacts student achievement. They also argue that without additional funding to support students who are behind, a screener won’t do much.  

In any case, both the literacy bill and this latest math bill are responding to real deficiencies. Statewide, California students still haven’t made up pandemic-era losses in student performance. Only a little more than a third of students met math standards in statewide tests. That number is even lower for Black and Latino students. 

Nationwide, the state’s fourth graders were tied for sixth lowest in math proficiency according to 2024’s NAEP tests. In reading, the state’s fourth graders tied for eighth lowest. 

“It’s frustrating for people who have worked in the education space and for those who have been looking at these numbers for decades — a generation — and seeing that, as a state, we have not prioritized education,” Weber Pierson told California Black Media at a recent press conference. “But I am grateful that we are taking steps to fix it.” 

San Diego Unified’s New Motivation Meter Shows Modest Gains, Big Gaps 

As San Diego Unified continues to embark into the unknown in its attempts to measure student wellness, district officials on Tuesday presented the second results of a survey intended to measure student motivation.  

The survey measured a handful of school-related factors. Those included things like how safe kids feel at school and how good their relationships with teachers are. It also asked about more personal attributes, like whether students demonstrate things like grit or a growth mindset.  

The results showed modest district-wide gains across almost all of the domains, with students’ ability to manage stress and calm themselves seeing the highest increase. Still, the percentage of kids who answered positively in each of the categories lingered in the 50s and 60s.  

More worryingly, though, Black, Latino and English learner students saw marked decreases across almost all categories surveyed. At Trustee Shana Hazan’s prompting, district officials said they would come back with strategies to turn that trend around.  

Along with the standard survey, the district collected recorded testimonies from students. Officials then turned to a new tool in the district’s toolkit to make sense of the voice recordings at scale. The AI-powered program, called Impacter Pathway, analyzes student responses to prompts and identifies attributes, characteristics or trends that may have been expressed, but not stated outright.  

District data guru Roman del Rosario and Area Superintendent Erin Richison walked board members and attendees through the system’s analysis of one boy’s statement. In the statement, the boy said he came from a family that had struggled and that he wanted to succeed to prove himself. To do that, he sometimes takes on challenges he knows may be too big for him. The program identified the statement as expressing grit and a desire to be pushed.  

It was an interesting exhibition that clearly resonated with board members, for whom finding ways to divine data from the squishiness of wellness monitoring has been a primary challenge. 

 Trustee Cody Petterson acknowledged there will likely be concerns about student privacy, and admitted to being icked out by the prospect of AI in this context. Still, he said he was “deeply moved.” 

“I always go back to three years ago when we started this process and our consultant said ‘Hey, you really shouldn’t do this, no one in the country is doing this, we don’t have metrics yet,’” Petterson recalled. “You are creating the tools to hold ourselves accountable to creating this space of wellness.” 

Pooch Poo Soils School Fields; Budget Cuts Curtail Caca Cops 

San Diego Unified’s long-running joint-use program has opened up school facilities all over the district to the public. One of the most popular examples has been the district opening fields to community members after school hours.  

But the program hasn’t been all sunshine and roses. It’s also featured some holes and a whole lot of poop, courtesy of community members who let their pooches roam the fields off leash and don’t pick up after them. The problem got so bad at some joint-use fields that kids were tumbling into doggy-dug holes and doggy-dealt doodoo. The district even closed some joint-use fields to the public to curb the crappy behavior.  

Now, citywide budget cuts are taking a bite out of what little enforcement existed.  

The city of San Diego used to contract with the Humane Society to patrol the parks, but that partnership ended last year. Officials confirmed to Axios their officers no longer responded to calls reporting off leash dogs at local school fields. And while the city is adding stickers at some school fields directing residents to report bad behavior on the Get it Done app, there’s still no function that allows such reports.  

Related: A new analysis from Mayor Todd Gloria’s office projects that the city will need to make deep cuts to its libraries and rec centers to fill its yawning deficit. The cuts, which will include significant reduction in hours and potential closures, would amount to nearly $8 million in savings. The current deficit stands at nearly $150 million. 

One More Thing: Just FYI, San Diego Unified’s Board Opposes Iran War 

In case you were wondering, San Diego Unified trustees are against the Iran war.  

The board voted 4-1 on Tuesday night to pass a resolution, authored by Petterson and Trustee Richard Barrera, that condemned the American- and Israeli-led conflict. Trustee Shana Hazan was the sole “no” vote, saying from the dais she felt the district should focus its advocacy on things more directly related to its students, like school funding.  

The resolution – which decried the war’s negative impact on civilians and children in the Middle East, the worldwide economy, local military families and democratic norms – also called on local congressional representative to do everything in their power to bring an end to the war. 

Even AI caught some fire, with the trustees writing: “The use of AI in the targeting of munitions – and the corresponding reduction of human oversight, judgment, and decision-making in the ‘kill chain’ – has introduced profound and unlegislated risks to civilian populations and, in particular, children.” 

During an emotional speech from the dais, Petterson, the self-professed John Boehner (another frequent crier) of the district’s board, tearfully spoke about his anti-war convictions. To Petterson, a straight line could be traced from the “forever wars” in Iraq and Afghanistan, which he said have contributed to the slow decline of America’s prosperity and opportunity, to the war in Iran. 

“I oppose all wars of aggression,” Petterson said. “I am a secular person, but I was raised in the church and in spite of no longer being a believer, per se, God is still watching.” 

Correction: This post has been updated to correct that Akilah Weber Pierson is a state senator.

The post Learning Curve: Senator Wants New Math Screenings appeared first on Voice of San Diego.

In a statement on Wednesday, the Sy-led conglomerate said consolidated revenues rose by 5% to P159.4 billion from P152 billion in the same period last year.

Banking remained the largest earnings contributor, accounting for 49% of total net income, followed by property at 28%, retail at 15%, and portfolio investments at 8%.

SMIC said its retail segment posted strong results, with SM Retail reporting a 13% increase in net income to P4.1 billion, supported by higher demand in non-food categories such as department stores during the graduation season.

Food and specialty retail segments also contributed steady results, the company said.

Outside its core businesses, SMIC said portfolio investments posted gains, with Atlas Consolidated Mining & Development Corp. benefiting from higher copper prices, while 2GO Group, Inc. reported growth in logistics and travel services.

Goldilocks Bakeshop also saw increased demand during the early part of the graduation season, according to SMIC.

The company said total assets stood at P1.8 trillion as of the end of the quarter. Its capital structure consisted of 30% net debt and 70% equity.

SMIC also said it is managing its position amid geopolitical pressures by focusing on financial discipline, diversification, and maintaining access to capital.

“The first quarter continued to deliver good results for us, especially in retail. We are aware of external challenges and will endeavor to maintain our performance by being disciplined on costs and focused on meeting consumer needs even when their spending is constrained,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said.

“Volatility is now a feature of the operating environment. This means staying liquid, facing investments carefully, and keeping enough flexibility to act when opportunities arise,” SMIC Chairman Amando M. Tetangco, Jr. said during the company’s annual stockholders’ meeting.

“In practical terms, it allows us to invest when conditions are weak, not just when they are favorable,” he added.

Mr. Tetangco said SMIC’s diversification across retail, property, banking, and other investments helps cushion the impact of shocks affecting individual segments.

“Resilience is built ahead of time, not in the middle of early disruption,” he said.

Shares in SMIC were unchanged at P620 apiece on Wednesday. — Alexandria Grace C. Magno

The central bank said investment tends to weaken when the dollar appreciates sharply while also becoming more volatile, since these conditions heighten uncertainty and strain firms with significant foreign exchange exposure.

The study analyzed how global shocks affect investment using economic data — like the US dollar and volatility measures — and information from news reports on overall and firm-level investments over two periods.

“At the aggregate level, investment declines in response to US dollar volatility, particularly when the dollar is strengthening, as well as to heightened uncertainty in the US economy and global trade,” BSP researchers Hazel C. Parcon-Santos, Cristeta B. Bagsic, Carl Francis C. Maliwat, Jose Adlai M. Tancangco and Alyssa Cyrielle B. Villanueva said in the report.

Findings showed that episodes marked by both a stronger and more volatile dollar consistently coincide with lower overall investment in the Philippines.

The BSP noted that exchange rate volatility increases uncertainty, discouraging both investors and lenders, which in turn suppresses capital formation.

The study found that financial data, like exchange rates and volatility, has a bigger effect on investment decisions than news-based or written signals, both in the short and long terms.

“The joint combination of stronger and more volatile value of the dollar reduces investments greater than any text-based measure,” the central bank said.

On the policy side, the BSP noted that government spending could help offset the negative effects of global shocks. Increased public expenditure was found to have a positive and statistically significant effect on investments because it signals potential opportunities and stability to both domestic and foreign investors.

However, the study also found that rising inflation and higher lending rates — often indirect consequences of global shocks — weigh on investment activity. Elevated borrowing costs and higher prices reduce companies’ capacity and willingness to invest over both short and long horizons.

At the company level, the BSP found that global shocks similarly dampen capital expenditure growth across sectors.

Nonfinancial firms, particularly those in manufacturing, were shown to be highly sensitive to movements in the dollar. This reflects their reliance on imported inputs, making them more exposed to fluctuations in exchange rates.

Among different company types, goods exporters were found to be the most affected by volatility, despite benefiting from a stronger dollar in terms of peso-denominated revenue.

The BSP said many exporters carry significant foreign-denominated debt, which becomes more expensive as the dollar strengthens.

“As the US dollar strengthens, the peso value of these obligations also increases,” the BSP said, noting that the negative financial effects outweigh the benefits from improved export earnings.

Goods importers also face heightened risks since exchange rate volatility increases the cost uncertainty of imported inputs, further compounded by foreign currency liabilities.

In contrast, service exporters were identified as the most resilient group. The BSP attributed this to their lower reliance on imported goods and limited exposure to foreign-denominated debt, insulating them from exchange rate swings.

The study found that companies with high foreign currency debt remain vulnerable even if they do not rely heavily on imports. This shows the importance of managing foreign exchange exposure, as fluctuations in the dollar can significantly affect balance sheets.

Crucially, the BSP found that dollar appreciation alone does not necessarily dampen investment. Instead, the negative effects arise when appreciation is accompanied by heightened volatility.

“The results show that a US dollar appreciation, by itself, does not negatively affect firms’ capital expenditure (capex) growth,” it said. “Only when the US dollar appreciation is accompanied by volatility does it adversely affect firms’ capex growth.” — AMCS

THE PESO fell to a fresh record against the dollar on Wednesday, weighed down by broad dollar strength and rising global oil prices amid expectations of prolonged supply disruptions in the Middle East and a hawkish outlook for US monetary policy.

It closed at P61.567 a dollar, weakening by 26.7 centavos from its previous record finish of P60.30 on Tuesday, according to Bankers Association of the Philippines data posted on its website. Year to date, the peso has depreciated by P2.777 or 4.51% from its P58.79 close at end-2025.

The peso opened the session slightly stronger at P61.20 but quickly lost ground, touching an intraday low of P61.67 before settling near that level at the close. Total dollar trading declined to $1.61 billion from $1.75 billion in the previous session.

Market participants attributed the peso’s weakness to sustained demand for the dollar, driven largely by rising oil prices and geopolitical risks.

A trader said the currency continued to slide as global crude prices climbed on expectations of an extended blockade affecting Iranian oil exports, which could tighten supply in the global market.

Oil prices rose further on Wednesday, extending a multi-day rally. Brent crude futures climbed above $112 per barrel, while US West Texas Intermediate (WTI) crude breached the $100 level.

The continued gains reflect concerns that supply disruptions in the Middle East could persist, especially with reports that the US might prolong its blockade targeting Iranian ports.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the war could constrain global oil supply and push fuel costs higher, adding pressure on the peso.

Higher oil prices typically widen the Philippines’ trade deficit since the country is heavily dependent on imported fuel.

He added that dollar demand was also boosted by hedging activity after the peso breached the P61-a-dollar level.

“The breach above P61 since Tuesday was largely triggered by some hedging activities on the country’s fuel imports and the importation of other goods in view of the state of national energy emergency that came into effect on March 24,” Mr. Ricafort said via Viber.

Another trader said expectations of prolonged elevated interest rates in the US also supported the dollar.

Market sentiment has shifted toward a later timeline for policy easing, with some investors now expecting the US Federal Reserve to delay rate cuts until much later than previously anticipated.

The dollar edged higher against major currencies as investors awaited the Federal Reserve’s policy decision later in the day. While the central bank was widely expected to keep rates unchanged, markets were closely watching for signals on the future policy path and the economic impact of the US-Israel war on Iran.

The euro and British pound both slipped slightly against the dollar, reflecting the greenback’s broad-based strength. Analysts said the dollar’s resilience underscores its status as a safe-haven asset during periods of global uncertainty.

CORRECTIVE PULLBACK
A third trader noted that the peso was also pressured by concerns over domestic inflation and economic growth.

The Bangko Sentral ng Pilipinas (BSP) last week raised its inflation forecasts, projecting it to average 6.3% this year and 4.3% in 2027 — both above its 2%-4% target.

These upward revisions come amid rising global commodity prices, particularly oil, which could feed into higher transport and production costs.

Inflation is also expected to remain above 5% for the rest of the year, adding to concerns about purchasing power and economic stability.

The BSP last week raised its key policy rate by 25 basis points to 4.5%, its first rate hike since October 2023 and signaling a shift away from its previous easing cycle.

Central bank officials have said further tightening might be needed to contain inflationary pressures.

Traders said the peso’s movement would continue to depend on global developments, particularly oil prices and US monetary policy signals.

Some expect a corrective pullback if the currency approaches the P61.80 level, although risks remain tilted to further weakness.

For the near term, analysts expect the peso to trade at P61.40 to P61.70, with volatility likely to persist amid the war and shifting market expectations.

THE UNITED Arab Emirates’ (UAE) exit from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) could benefit oil-importing countries like the Philippines if it leads to higher output and softer prices, analysts said.

Jose M. Layug, a former Energy undersecretary, said the impact would depend on how the UAE adjusts its production outside the group’s quota system.

“If it will produce more supply without following the output limits of OPEC production and offer reduced prices to capture a bigger chunk of the market, then it may be good for the Philippines,” he said in a Viber message.

The UAE on Tuesday said it would leave OPEC and the wider OPEC+ alliance effective May 1, removing one of the group’s biggest producers from coordinated output limits.

Analysts said the move could have mixed effects. Leo P. Bellas, president of Jetti Petroleum, Inc., said the exit could push prices higher in the short term as it removes supply from OPEC’s coordinated pool.

“The UAE’s departure… removed the organization’s third-largest producer from the quota framework,” he said in a Viber message, adding that it comes at a time when global spare capacity remains tight following disruptions in the Strait of Hormuz.

However, the shift could eventually be bearish for prices if the UAE increases production independently, Mr. Bellas said.

“For now, worries about supply constraints… are keeping prices elevated and outweigh concerns on the bearish effects of the UAE’s departure,” he added.

OPEC and its allies will lose some of their power over the oil market when the UAE leaves the group after nearly 60 years as a member, but the rest of the producer alliance is likely to stick together and continue to coordinate on oil supply policy, OPEC+ delegates and analysts said.

That will free Abu Dhabi from the oil production targets imposed by OPEC and its allies to balance supply and demand.

Brigitte Carmel Lim, senior vice-president and chief operating officer at Cebu-based Top Line Business Development Corp., said the development might add volatility rather than immediately affect supply.

“The main question is whether they will increase output independently, which could soften prices, but that’s still uncertain,” she said via Viber.

Global oil prices have surged amid the US-Israel war on Iran, which has disrupted supply flows and heightened inflation risks.

Local pump prices remain tied to global benchmarks. Diesel and kerosene have posted recent rollbacks, while gasoline prices rose slightly this week, reflecting mixed market movements.

The UAE’s exit came as a shock, said five OPEC+ sources who asked not to be named because they are not allowed to speak to the press.

The exit would complicate OPEC+’s efforts to balance the market through adjustments to supply because the group would have control over less of global production, four of the five sources said.

The UAE will become the biggest oil producer to depart OPEC, a heavy blow to the organization and its de facto leader Saudi Arabia. Abu Dhabi pumped about 3.4 million barrels per day (bpd) or about 3% of the world’s crude supply before the US-Israeli war on Iran forced it and other Middle East Gulf producers to curb shipments and shut down some production.

OPEC and the Saudi government communication office did not immediately reply to a request for comment.

Once outside OPEC, the UAE will join the ranks of independent oil producers that pump at will, such as the US and Brazil. For now, there is not much the UAE can do to increase production or exports due to the effective closure of shipping through the Strait of Hormuz. If and when shipping recovers to prewar levels, the UAE could increase output to the country’s capacity of 5 million bpd of crude oil and liquids.

There has been tension between the UAE and Saudi Arabia over the Emiratis’ production quota, which stands at 3.5 million bpd. The UAE has asked for a bigger quota to reflect the fact that it had expanded capacity as part of a $150-billion investment program.

“For years, Abu Dhabi has been looking to monetize its investment in expanding capacity,” said Helima Croft from RBC Capital Markets. The US-Israeli war on Iran would, however, slow those plans down after drones and rockets damaged the UAE’s production facilities, she said.

The war has resulted in the biggest-ever global energy supply disruption in terms of outright daily oil production, according to the International Energy Agency (IEA). The war has also exposed discord among Gulf nations, including between the UAE and Saudi Arabia.

Rumors of the UAE’s exit from OPEC+ have circulated for years amid worsening relations with Riyadh over conflicts in Sudan, Somalia and Yemen. The UAE has also grown increasingly close to the US and Israel.

IRAQ STAYS IN
The UAE is the fourth producer to quit OPEC+ in recent years, and by far the biggest. Angola quit the bloc in 2024, citing disagreements over production levels. Ecuador quit OPEC in 2020 and Qatar in 2019.

Iraq, the third-largest producer in OPEC+ after Saudi Arabia and Russia, has no plan to leave OPEC+ as it wants stable and acceptable oil prices, two Iraqi oil officials said.

OPEC+ will not collapse as Saudi Arabia will still want to manage the market with the help of the group, said Gary Ross, a veteran OPEC watcher and CEO at Black Gold Investors.

“At the end of the day, Saudi Arabia was essentially OPEC — the only country with spare capacity,” he said. Saudi Arabia can produce 12.5 million bpd but has in recent years kept production under 10 million bpd.

OPEC+ membership gives countries more diplomatic and international weight — one of the reasons cited by analysts behind Iran’s decision to stay in OPEC even at the peak of its fight with Gulf countries.

US President Donald J. Trump has accused OPEC of “ripping off the rest of the world” by inflating oil prices. He has said the US might reconsider military support to the Gulf because of OPEC oil policies.

It was, however, Mr. Trump who helped convince OPEC+ to cut output in 2020 during the COVID pandemic as oil prices slumped and US producers suffered.

“The UAE withdrawal marks a significant shift for OPEC… the longer-term implication is a structurally weaker OPEC,” said Jorge Leon, a former OPEC official who now works at Rystad Energy.

OPEC+ members will be more focused on rebuilding facilities hit by the war rather than on embarking on production cuts in the near future, Ms. Croft said. Hence, the broader OPEC+ breakup is not on the cards for now, she added.

DECLINING POWER
OPEC’s sway over the market has been declining for decades.

Formed in 1960, OPEC once controlled over 50% of global output. As rivals’ production grew, the group’s share declined to about 30% of the world’s total oil and oil liquids output of 105 million bpd last year.

The US, which used to rely on imports from OPEC members, has become its biggest rival over the past 15 years. The US has raised production to as much as 20% of the world’s total on the back of its shale oil boom.

The US production spike prompted OPEC to team up in 2016 with several non-OPEC producers to form OPEC+, a group led by Russia — previously one of Saudi Arabia’s top rivals in the oil industry.

The alliance gave the group control over about 50% of the world’s total oil production in 2025, according to the IEA. The loss of the UAE means it will decline to about 45%. — with Reuters

THE PHILIPPINE ECONOMY likely slowed in the first quarter as the prolonged Middle East war weighed on activity, with growth expected to fall below recent quarters and miss the government’s full-year target, the Economy chief said.

Economy, Planning, and Development Secretary Arsenio M. Balisacan said the economy is unlikely to meet the 5% to 6% growth goal this year due to external shocks and lingering domestic issues.

“It would be, given this unforeseen development,” he told reporters on Wednesday, referring to the US-Israel war on Iran. “And we’re trying to recover from the infrastructure issue last year, and then we’re hit again by even more serious problems.”

“It’s understandable that you can’t expect it to be better than what you had in previous quarters, given these shocks,” he added.

The economy grew 4.4% in 2025 — the slowest in five years — weighed down by weaker investment sentiment after a corruption scandal tied to flood control projects. The controversy implicated government officials, lawmakers and contractors, dampening business confidence.

Mr. Balisacan said global conditions have also worsened, citing downgraded growth forecasts from multilateral institutions.

“The global picture shows that growth expectations have been reduced,” he said, citing forecasts by the World Bank and International Monetary Fund (IMF).

The World Bank and IMF trimmed their 2026 growth forecasts for the Philippines to 3.7% and 4.1%, respectively.

The Development Budget Coordination Committee (DBCC) is expected to review its macroeconomic targets after the release of first-quarter data scheduled for May 7.

“Our practice is to do those reviews as soon as we have the economic performance report… maybe a week or two after that,” Mr. Balisacan said.

The DBCC had lowered its growth targets in December to reflect the impact of the infrastructure controversy, setting a 5% to 6% goal for 2026 from 6% to 7%.

Rising oil prices due to the Middle East war have added pressure on the economy. The Philippines, which relies heavily on imported fuel, has been hit by higher energy costs and tighter supply conditions.

The government declared a one-year state of national energy emergency and suspended excise taxes on kerosene and liquefied petroleum gas to cushion the impact on consumers.

“Most of our fuel needs… come from the Middle East, directly or indirectly,” Mr. Balisacan said. “So, we were affected by the shocks.”

Authorities have rolled out targeted subsidies and support measures to mitigate the impact on vulnerable sectors.

“So, what we have been doing… is to ensure that the economy is not severely slowed down by this shock,” he said, adding that protecting low-income households remains a priority.

Despite near-term challenges, Mr. Balisacan expressed confidence in a recovery once external pressures ease.

“But the most important thing is that we will be able to recover as soon as this shock is over,” he said.

The Philippines remains reliant on fossil fuels, with renewable energy accounting for only 26% of the power mix — close to the government’s 35% target by 2030.

Also on Wednesday, the Asian Development Bank (ADB) said economies in Asia and the Pacific, including the Philippines, should prioritize stabilization over suppressing price signals amid rising energy costs.

“Allowing higher energy prices to pass through, at least in part, can encourage energy conservation, fuel switching and investment in alternative energy sources,” it said in a policy brief.

The multilateral lender said fiscal support should be targeted and time-bound, with priority given to vulnerable households and heavily affected industries.

The ADB also cautioned against aggressive policy tightening, warning that it could worsen growth pressures and heighten financial market volatility.

It said governments might consider demand-side measures such as temperature mandates and incentives for public transport use to curb energy consumption.

In its April Asian Development Outlook, the ADB lowered its 2026 growth forecast for the Philippines to 4.4% from 5.3%.

It also cut its growth projection for Asia and the Pacific to 4.7% from 5.1%, reflecting broader economic headwinds.

San Diego’s South Bay has long taken pride in its deep connections to Mexico.

Enter the second Trump administration, which has thrown the region’s cross-border identity, culture and commerce into chaos.

San Diego hasn’t seen the dramatic onslaught of immigration enforcement that made national headlines in Minneapolis or Los Angeles but as our Jim Hinch reports, it’s suffering nonetheless.

Unpredictable and seemingly random enforcement operations have left residents and workers unsettled. Business and transit ridership are down. Even health clinics are seeing fewer patients.

Meanwhile, Hinch reports, South Bay politicians and community leaders are grappling with what they can do to help as residents demand support.

Read the full story here.

Democratic Super PACs Pour Big Bucks Into Congressional Race

Cue the big money.

Democrats are pouring millions into the 48th Congressional District race in the hopes of eventually flipping the seat, reports the Union-Tribune. For now, much of their fire power is trained on each other.

The current outside spending edge tilts strongly toward Marni von Wilpert, a San Diego city councilmember. A pro-Israel group is supporting von Wilpert to the tune of more than a million dollars and the state’s largest labor union has spent more than $100,000 on her behalf. 

But Democrat Ammar Campa-Najjar is also the beneficiary of some very deep pockets. Campa-Najjar’s longtime partner is U.S. Rep. Sara Jacobs, granddaughter of Irwin Jacobs, founder of Qualcomm. Jacobs pumped $500,000 into a group supporting Campa-Najjar.  

The Democratic-led House Majority PAC has pledged $4.8 million to the eventual Democratic nominee.

Last week was a rough one for Campa-Najjar, as we wrote in last week’s Politics Report. Laura Loomer came at him because his grandfather was a high-level official in Palestine’s Fatah party. The U.S. Navy also came at him for calling himself an officer in the military, while not stipulating that he is actually a reservist.  

Von Wilpert’s team has called him out for accepting money from billionaires. Campa-Najjar fired back and said he’d rather get financial support from groups that support veterans and small donors than a pro-Israel super PAC.

In Other News

• An analysis by Mayor Todd Gloria ranks library and recreation centers by their importance to the community in the midst of big budget cuts. In the analysis he lays out different scenarios for City Council to consider in order to conserve hours and minimize impact on different neighborhoods. (Union-Tribune)
• A Superior Court judge has ordered Rady Children’s Hospital to continue providing gender-affirming care until at least this Friday. (CBS 8)
• Turns out it’s tough to hire dispatchers. The Harbor Police with the Port of San Diego wants special permission to rehire recently retired dispatchers to fill staffing gaps. (Union-Tribune)
• America’s Finest Charter School in Talmadge will shut down at the end of the school year. (10 News)
• City residents who need help covering trash and recycling fees have until Thursday to seek assistance from the city. (NBC 7)
• San Diego Whale Watch reported its first blue whale sighting of the season. (Instagram)
• Correction: We updated the Environment Report from Monday to note that a spokesperson quoted in the story worked for the governor of Baja California. 

The Morning Report was written by Lisa Halverstadt and Mariana Martínez Barba. It was edited by Will Huntsberry.

The post Morning Report: South Bay and the Immigration Crackdown appeared first on Voice of San Diego.

San Diego-area Assemblymember Akilah Weber Pierson wants to assign California educators some new homework: screening kids for math competency.  

A new bill authored by Weber would require schools to perform math testing for students in kindergarten, first or second grade. It would also require educators to offer extra support to students whose math skills are behind where they should be. 

A number of safeguards to more narrowly focus the screenings are also written into the bill. Those include the stipulation that scores could not be used to evaluate teachers or identify students for gifted programs. Students’ math skills are already tested in third grade. But in pitching the bill, Weber Pierson argued that disparities begin even earlier than that. 

“By that time, many students who are struggling with foundational math skills have already fallen behind,” Weber Pierson said. 

The effort is aimed at evening the incredibly uneven playing field of early childhood education. Some kids who enter the public school system may have already had years of more focused math education. Many of those who start behind, stay behind.  

“Unless those students get intervention, the gap will widen. It’ll be harder for them to access higher-level math classes later on, and this will have implications for future job opportunities and the economic future of California. It’s a continual closing of opportunities,” Alice Klein, the research director at WestEd told CalMatters. 

But like the reading curriculum reforms signed into law by Governor Gavin Newsom late last year, the new math framework could face some stiff opposition. That signing capped years of a contentious back and forth debate in Sacramento during which multiple bills aimed at changing how we teach kids to read crumble under pressure.  

Like some of those earlier literacy bills, the powerful California Teachers Association opposes Weber Pierson’s math bill. In their telling, lawmakers should wait to see how the state’s new math framework impacts student achievement. They also argue that without additional funding to support students who are behind, a screener won’t do much.  

In any case, both the literacy bill and this latest math bill are responding to real deficiencies. Statewide, California students still haven’t made up pandemic-era losses in student performance. Only a little more than a third of students met math standards in statewide tests. That number is even lower for Black and Latino students. 

Nationwide, the state’s fourth graders were tied for sixth lowest in math proficiency according to 2024’s NAEP tests. In reading, the state’s fourth graders tied for eighth lowest. 

“It’s frustrating for people who have worked in the education space and for those who have been looking at these numbers for decades — a generation — and seeing that, as a state, we have not prioritized education,” Weber Pierson told California Black Media at a recent press conference. “But I am grateful that we are taking steps to fix it.” 

San Diego Unified’s New Motivation Meter Shows Modest Gains, Big Gaps 

As San Diego Unified continues to embark into the unknown in its attempts to measure student wellness, district officials on Tuesday presented the second results of a survey intended to measure student motivation.  

The survey measured a handful of school-related factors. Those included things like how safe kids feel at school and how good their relationships with teachers are. It also asked about more personal attributes, like whether students demonstrate things like grit or a growth mindset.  

The results showed modest district-wide gains across almost all of the domains, with students’ ability to manage stress and calm themselves seeing the highest increase. Still, the percentage of kids who answered positively in each of the categories lingered in the 50s and 60s.  

More worryingly, though, Black, Latino and English learner students saw marked decreases across almost all categories surveyed. At Trustee Shana Hazan’s prompting, district officials said they would come back with strategies to turn that trend around.  

Along with the standard survey, the district collected recorded testimonies from students. Officials then turned to a new tool in the district’s toolkit to make sense of the voice recordings at scale. The AI-powered program, called Impacter Pathway, analyzes student responses to prompts and identifies attributes, characteristics or trends that may have been expressed, but not stated outright.  

District data guru Roman del Rosario and Area Superintendent Erin Richison walked board members and attendees through the system’s analysis of one boy’s statement. In the statement, the boy said he came from a family that had struggled and that he wanted to succeed to prove himself. To do that, he sometimes takes on challenges he knows may be too big for him. The program identified the statement as expressing grit and a desire to be pushed.  

It was an interesting exhibition that clearly resonated with board members, for whom finding ways to divine data from the squishiness of wellness monitoring has been a primary challenge. 

 Trustee Cody Petterson acknowledged there will likely be concerns about student privacy, and admitted to being icked out by the prospect of AI in this context. Still, he said he was “deeply moved.” 

“I always go back to three years ago when we started this process and our consultant said ‘Hey, you really shouldn’t do this, no one in the country is doing this, we don’t have metrics yet,’” Petterson recalled. “You are creating the tools to hold ourselves accountable to creating this space of wellness.” 

Pooch Poo Soils School Fields; Budget Cuts Curtail Caca Cops 

San Diego Unified’s long-running joint-use program has opened up school facilities all over the district to the public. One of the most popular examples has been the district opening fields to community members after school hours.  

But the program hasn’t been all sunshine and roses. It’s also featured some holes and a whole lot of poop, courtesy of community members who let their pooches roam the fields off leash and don’t pick up after them. The problem got so bad at some joint-use fields that kids were tumbling into doggy-dug holes and doggy-dealt doodoo. The district even closed some joint-use fields to the public to curb the crappy behavior.  

Now, citywide budget cuts are taking a bite out of what little enforcement existed.  

The city of San Diego used to contract with the Humane Society to patrol the parks, but that partnership ended last year. Officials confirmed to Axios their officers no longer responded to calls reporting off leash dogs at local school fields. And while the city is adding stickers at some school fields directing residents to report bad behavior on the Get it Done app, there’s still no function that allows such reports.  

Related: A new analysis from Mayor Todd Gloria’s office projects that the city will need to make deep cuts to its libraries and rec centers to fill its yawning deficit. The cuts, which will include significant reduction in hours and potential closures, would amount to nearly $8 million in savings. The current deficit stands at nearly $150 million. 

One More Thing: Just FYI, San Diego Unified’s Board Opposes Iran War 

In case you were wondering, San Diego Unified trustees are against the Iran war.  

The board voted 4-1 on Tuesday night to pass a resolution, authored by Petterson and Trustee Richard Barrera, that condemned the American- and Israeli-led conflict. Trustee Shana Hazan was the sole “no” vote, saying from the dais she felt the district should focus its advocacy on things more directly related to its students, like school funding.  

The resolution – which decried the war’s negative impact on civilians and children in the Middle East, the worldwide economy, local military families and democratic norms – also called on local congressional representative to do everything in their power to bring an end to the war. 

Even AI caught some fire, with the trustees writing: “The use of AI in the targeting of munitions – and the corresponding reduction of human oversight, judgment, and decision-making in the ‘kill chain’ – has introduced profound and unlegislated risks to civilian populations and, in particular, children.” 

During an emotional speech from the dais, Petterson, the self-professed John Boehner (another frequent crier) of the district’s board, tearfully spoke about his anti-war convictions. To Petterson, a straight line could be traced from the “forever wars” in Iraq and Afghanistan, which he said have contributed to the slow decline of America’s prosperity and opportunity, to the war in Iran. 

“I oppose all wars of aggression,” Petterson said. “I am a secular person, but I was raised in the church and in spite of no longer being a believer, per se, God is still watching.” 

The post Learning Curve: Local Assemblymember Wants New Math Screenings appeared first on Voice of San Diego.

In an advisory dated April 27 and released on Tuesday, the CAB adjusted the surcharge for the first 15 days of May from the Level 19 rate implemented for April 16-30.

At Level 18, fuel surcharges range from P593 to P1,734 for domestic flights and from P1,958.44 to P14,561.87 for international flights, depending on distance.

Fuel surcharges are variable fees added to base fares to offset changes in jet fuel costs and are adjusted based on movements in jet fuel prices using the Mean of Platts Singapore benchmark.

The Level 18 surcharge remains among the highest imposed, just two levels below the allowable cap at Level 20.

The highest surcharge so far was Level 19, implemented from April 1 to 15, according to the agency.

Based on the CAB’s fuel surcharge matrix, passengers booking flights for the May 1-15 period will pay P1,958.44 for flights between the Philippines and Taiwan, Hong Kong, Vietnam, Cambodia, and Brunei. Flights between Manila and Singapore, Thailand, Malaysia, and Guam will carry a surcharge of P2,708.56.

For routes between the Philippines and North America, the United Kingdom, and the Netherlands, fuel surcharges reach P13,868.44. For flights exceeding 14,000 kilometers from the Philippines, surcharges can go up to P14,561.87.

In April, the CAB shifted from a monthly review of fuel surcharges to a 15-day monitoring cycle to respond more quickly to fuel price movements following the war in the Middle East.

CAB Executive Director Carmelo L. Arcilla said the measure will remain in effect until the situation stabilizes, unless revised or revoked.

The equivalent exchange rate is set at P60 to the dollar for airlines collecting fuel surcharges in foreign currency, the CAB said.

According to monitoring by the International Air Transport Association (IATA), jet fuel prices fell week on week to $179.46 per barrel as of April 24. On a yearly basis, however, jet fuel prices have nearly doubled, rising 99.3%.

Separately, the CAB said that if fuel prices decline further, the surcharge may be adjusted downward under the shortened monitoring period.

Jet fuel is one of the largest components of airline operating expenses, the CAB said, adding that maintaining a stable aviation sector requires supporting the financial sustainability of air carriers.

Cebu Pacific Chief Executive Officer Michael B. Szücs said the industry’s current challenge is not supply constraints, but the sharp increase in jet fuel prices.

According to the CAB, jet fuel prices averaged $208 per barrel from March 10 to April 8, a steep increase from about $89 per barrel in January.

Based on data from the Department of Energy, the country’s average daily jet fuel demand is 5.65 million liters, with available supply estimated to last about 70 days. — Ashley Erika O. Jose

In a policy note, PIDS said high costs and low trust continue to keep a large share of Filipinos unbanked despite growing adoption of digital financial platforms.

Citing data from the World Bank, it said the Philippines made progress in financial inclusion as formal account ownership reached 56% in 2021 and digital payments at 57.4%, exceeding the government’s 50% target.

Despite this, more than half or 51.4% of Filipino adults remain unbanked, trailing regional peers like Singapore and Thailand.

“While AI could help bridge these gaps through better credit assessment and fraud detection, its adoption necessitates safeguards to address data privacy and potential inequality risks,” it said.

The Philippines also lags its Association of Southeast Asian Nations (ASEAN) peers in AI readiness, scoring 0.50 in the International Monetary Fund’s AI Preparedness Index. Although slightly higher than Vietnam’s 0.48, it is lower compared to Singapore’s 0.80, Thailand’s 0.54, and Indonesia’s 0.52.

“Broader ASEAN indicators place the Philippines in the middle range for AI preparedness, digital readiness, financial inclusion, and digital economy size,” the PIDS said.

“What sets the country apart, however, is the contrast between its very high consumer interest in AI and its relatively weak institutional capacity.”

This gap explains why AI adoption in the financial sector has been gradual, it added, as the capacity to adopt and govern AI systems varies greatly among institutions, according to the Bangko Sentral ng Pilipinas (BSP).

“Expansion remains uneven, with rural banks and cooperatives facing greater capacity constraints compared to universal and commercial banks,” it said.

During the coronavirus pandemic, cybersecurity emerged as a critical concern across the financial sector as phishing scams increased by 200%.

“This surge has heightened institutions’ caution toward digital and AI technologies, particularly among smaller financial service providers with limited cybersecurity infrastructure,” it said.

“Additionally, regulatory compliance requirements pose disproportionate burdens on smaller institutions that lack dedicated compliance teams and resources.”

FINANCIAL ENGAGEMENT
Account usage also remains limited even as more Filipino adults own formal accounts. Many continue saving and borrowing informally through family (42.8%) and savings clubs (48.4%), PIDS said.

“Despite high mobile phone ownership (96.3%) and internet access (87.4%), only 54.7% made digital payments, with lower rates for bill payments (30.2%) and merchant payments (26.3%).”

This suggests that connectivity alone is not enough to drive financial engagement, it said.

Usage barriers include lack of money (76%), high costs (55%), distance (40%), documentation issues (39%), and low trust (29%), while 34% said that a family member already had an account, pointing to household-level financial decision-making.

Still, PIDS said greater engagement with digital financial platforms significantly increases the likelihood of owning various types of financial accounts and using them for different financial activities, based on its own analysis.

However, AI-driven financial services will remain concentrated among digitally literate, urban, and higher-income groups if financial literacy remains low, it said, as a BSP survey showed that only 2% of Filipinos are able to correctly answer all basic financial literacy questions.

“This low literacy, combined with age-related digital divides, means vulnerable populations (older adults, low-income households, and rural residents) risk being left behind,” it said.

“Experts emphasized that without targeted financial and AI literacy programs, the benefits of AI-driven financial services will remain concentrated among digitally literate, urban, and higher-income groups, potentially widening existing inequalities.”

To address these gaps, PIDS said the government should enhance digital infrastructure, strengthen cybersecurity frameworks, develop AI education roadmaps, align policy frameworks, and reduce regulatory burdens.

Meanwhile, the education sector must integrate financial and AI literacy into school curricula and use AI as a tool to broaden financial education. Industry and private financial institutions should also ensure algorithmic fairness, strengthen security and transparency, expand services to underserved populations, and work with regulators to ensure AI adoption is aligned with national development goals.

The PIDS policy note was authored by Nikka C. Pesa, economist and instructor at the University of Asia and the Pacific; Mary Grace R. Agner, PIDS supervising research specialist; and Rutcher M. Lacaza, supervising legislative staff officer III at the Congressional Policy and Budget Research Department of the House of Representatives. — Justine Irish D. Tabile

ASEAN energy ministers convened virtually on Monday led by Philippine Energy Secretary Sharon S. Garin to discuss the war’s impact on the region.

The meeting was attended by energy ministers and representatives from all Association of Southeast Asian Nations (ASEAN) member states, with the support of the ASEAN Secretariat, the ASEAN Center for Energy, and the ASEAN Council on Petroleum and Energy.

Among the topics discussed was the importance of the ASEAN Framework Agreement on Petroleum Security (APSA) as a key regional action to enhance preparedness to potential oil and gas supply disruptions.

APSA is a pact to enhance petroleum security among ASEAN member states and minimize exposure to an emergency situation by establishing a petroleum-sharing scheme.

“We recalled that APSA modernizes ASEAN’s petroleum security arrangements by providing a voluntary and coordinated framework for emergency response, information sharing, and mutual assistance during supply crises,” the energy ministers said in a statement on Tuesday.

“In this regard, we urged the expeditious completion of national processes towards its ratification.”

Following the start of the war on Feb. 28, Iran has blocked the Strait of Hormuz, one of the world’s most critical oil chokepoints that handles a significant share of global crude shipments. This has left net oil importers like the Philippines and other Southeast Asian economies to grapple with supply and price shocks.

The Philippines relies heavily on Middle East crude, which accounts for roughly 98% of its imports.

“We emphasized that disruptions in key energy transit routes could have far-reaching implications on global oil supply chains, especially for ASEAN as a net energy-importing region,” the ministers said.

They added that the issue highlights the need to maintain secure and open sea lanes, as well as continuous transit of passage of vessels and aircraft in straits used for international navigation.

“We noted that ASEAN’s growing energy demand may increase exposure to such shocks and underscored that stable, accessible, reliable, and affordable energy supply remains fundamental to regional energy security.”

The ASEAN energy ministers have also committed to advancing the implementation of the ASEAN Plan of Action for Energy Cooperation 2026-2030, including its goal of reducing energy by 40%, attaining 30% renewable energy share in total energy supply and 45% in installed power capacity.

To reduce dependence on imported fossil fuel, they highlighted the need for supply diversification — including clean and renewable energy transition — broadening sources of crude oil and refined products, and strengthening “intra-ASEAN trade.”

“We further emphasized the need to accelerate biodiesel and bioethanol blending, promote the adoption of electric vehicles and electric cooking, enhance renewable energy deployment, and explore the role of emerging technologies, including civilian nuclear energy, in accordance with international safety standards,” the ministers said.

Aside from supply aspirations, they also stressed the critical role of demand-side and energy efficiency measures in mitigating the immediate impacts of oil supply shocks and enhancing long-term sustainability.

Meanwhile, the regional bloc’s energy chiefs urged continued efforts to advance the cross-border power trading under the ASEAN Power Grid (APG) that aims to link up the power systems of its member countries by 2045.

“We look forward to more cross-border electricity trading projects coming to fruition in the next few years to realize the APG.”

They likewise underscored the importance of the Trans-ASEAN Gas Pipeline in expanding liquefied natural gas infrastructure and supply chains. The project aims to establish interconnecting arrangements of electricity and natural gas in ASEAN. — Sheldeen Joy Talavera

HEADLINE INFLATION could surge past 8% this year if the Middle East conflict remains unresolved, which could push the Monetary Board to hike policy rates to up to 6%, the Hongkong and Shanghai Banking Corp. Ltd. (HSBC) said.

“We forecast full-year inflation to be 6.3%, where the peak will be in the fourth quarter at 8.1%, driven not mostly by energy but by food,” HSBC Senior ASEAN (Association of Southeast Asian Nations) Economist Aris D. Dacanay said at a briefing on Tuesday.

This forecast assumes an adverse scenario where the conflict persists up until the end of June or early July this year.

Next year, HSBC expects inflation to average 4.5% under the same scenario.

The Bangko Sentral ng Pilipinas (BSP) expects the consumer price index (CPI) to average 6.3% this year and 4.3% in 2027, it said last week. Both are above its 2%-4% tolerance band.

In March, inflation quickened to a two-year high of 4.1%, bringing the three-month average to 2.8%. The BSP sees the CPI remaining above 5% for the rest of the year.

With the inflation outlook deteriorating due to the war, the central bank’s policy-setting Monetary Board last week raised the target reverse repurchase rate by 25 basis points (bps) to 4.5%.

BSP Governor Eli M. Remolona, Jr. said more hikes are possible as they want to temper spiraling consumer prices.

“I think if things remain at status quo, and again, the conflict persists up until June or July, I think the BSP, given its mandate of price stability, can raise rates to up to 6%,” Mr. Dacanay said.

This would mean that the tightening cycle could extend to next year as the Monetary Board has only four more policy meetings scheduled for the rest of the year and they only expect the BSP to raise rates by 25 bps at a time, with a jumbo 50-bp cut unlikely unless there is a surprise shock.

“We have to understand that the Strait of Hormuz is not only putting a cap on the global supply of energy; if you have oil, you also have fertilizer… and urea prices have already doubled since then,” Mr. Dacanay said.

A third of seaborne-traded fertilizer in the world goes through the Strait of Hormuz.

“We are talking about a global shortage of fertilizer, which will affect not the food supply now, but the yields of the food supply maybe perhaps in three or six months’ time,” he said.

“It is the second wave of inflation that we need to anticipate. I do have to say though that the Philippines is the most vulnerable here.”

The Philippines is the largest net importer of food as a percent of gross domestic product (GDP), and Filipinos spend a big part of their incomes on food. At the minimum, HSBC projects food inflation will be at 8%, Mr. Dacanay said.

Faster inflation will also threaten domestic consumption, a key economic growth driver.

He cited the BSP’s latest Consumer Expectations Survey, which showed that Filipinos have started tightening their belts, even for essentials.

“They are cutting back spending altogether, and the percent of households who said that they saved during the current quarter rose to around 56-57%, which is higher than pre-pandemic levels,” he said.

“A lot of consumers… are now trying to save up more to be able to insure themselves from the uncertainties ahead. And this, I think, is a leading indicator that consumption will be on a weaker footing this year and the next.”

HSBC forecasts the Philippine economy to grow by less than 3.4% this year under the adverse scenario, well below the government’s 5%-6% target. Next year, it expects growth to rebound to 4.1%, still below the 5.5%-6.5% goal.

INTERVENTIONS
Mr. Dacanay said the government should implement measures to reduce the war’s impact on consumer costs, particularly the main staple, rice.

Rice prices continued to jump in March, bringing inflation for the staple grain to 3.6% from -3.4% in February. This was the first time since December 2024 that rice inflation settled in the positive territory or when it stood at 0.8%.

“The fertilizer shock has not hit the Philippines yet, but as we speak, a kilogram of rice is at P47. That is the highest, or it matches the highest in history,” he said.

“I do think certainty in rice policy can help temper prices in the retail rice market. And that would be a huge, huge inflation relief for the 113 million Filipino consumers.”

In particular, he said the government should look at lowering the tariffs on rice, as bringing rice prices back to P40 can shave off 50-75 bps from HSBC’s rate hike forecasts and shave off 1.5 percentage points from inflation.

“I also think that there’s a lot of room that can be managed when it comes to the restaurant industry. Right now, at 4.1%, one of the highest drivers of inflation is the restaurant business,” he said.

Rising fuel prices and dwindling reserves have pushed the government to place the country under a one-year state of energy emergency and suspend levies on kerosene and liquefied petroleum gas.

Mr. Dacanay added that the government can also extend the suspension on excise and value-added taxes (VAT) on diesel and gasoline.

“I think there is room to suspend excise taxes and even VAT if and only if there are clear conditions of the policy returning eventually,” he said.

“I think (the suspension of) excise taxes and VAT can deliver relief and some extent of disinflation, but we need to consider the tradeoffs.”

THE PESO tumbled to a new all-time low on Tuesday, breaching the P61 mark versus the dollar for the first time in history, on heightened inflation worries as global oil prices surged again after peace talks between the United States and Iran hit a deadlock.

The currency closed at P61.30 a dollar, plunging by 59 centavos from Monday’s P60.71 finish, according to Bankers Association of the Philippines data posted on its website.

This surpassed the previous all-time-low close of P60.748 logged on March 31. This is now also the worst level ever hit by the peso, beating the P60.84 recorded on March 30.

Year to date, the peso has weakened by P2.51 or 4.09% from its P58.79 finish on Dec. 29, 2025.

Tuesday’s drop was also its biggest one-day decline in over seven months or since it sank by 63.9 centavos on Sept. 25, 2025.

The peso opened Tuesday’s trading session weaker at P60.80 against the greenback. Its intraday best was at P60.77, while its worst showing was its closing level of P61.30.

Dollars traded jumped to $1.75 billion from $1.41 billion in the previous session.

The peso’s weakness continued to be driven by the closure of the Strait of Hormuz due to the US-Iran conflict, which has pushed up global oil prices, HSBC Senior ASEAN (Association of Southeast Asian Nations) Economist Aris D. Dacanay said at a media briefing on Tuesday.

“I don’t think it’s peso-driven. I think it’s dollar-driven. And you could see that with the depreciation across all other currencies.”

High demand for dollars among importers likely also led to Tuesday’s drop, Robert Dan J. Roces, an economist at SM Investments Corp., said in a Viber message.

“The move above P61 does not mean the BSP (Bangko Sentral ng Pilipinas) hike failed. It helped, but stronger forces are at work. US rates are still high, the dollar is strong, and money is moving out of emerging markets,” he said.

“The market is looking at where rates are headed, not just the last move, and may still be seeing a narrow gap with the US. The peso’s weakness is driven more by global factors, and the hike likely slowed the drop rather than reversed it.”

On Tuesday, Brent crude oil surged 2.7% to $111.20 a barrel, a three-week high, while US oil climbed 2.9% to $99.10, Reuters reported.

The US was reviewing Tehran’s latest proposal to resolve the war, even as a US official said President Donald J. Trump was unhappy with the plan as it did not address Iran’s nuclear program.

That leaves the two-month-long conflict at an impasse with energy and other supplies through the critical Strait of Hormuz still mainly shut.

The Philippines is a net oil importer, sourcing the bulk of its supply from the Middle East and making it extremely vulnerable to global price shocks.

Higher fuel costs due to the ongoing war have threatened the domestic inflation outlook, prompting the BSP’s Monetary Board to hike benchmark interest rates by 25 basis points last week. This was the first increase in over two years.

BSP Governor Eli M. Remolona, Jr. also left the door open to further tightening via “a succession of modest rate hikes” as they try to quell spiraling prices.

This, as the central bank now expects headline inflation to exceed its 2%-4% tolerance band until next year. It raised inflation forecasts to 6.3% for 2026 and 4.3% for 2027 from 5.1% and 3.8% previously.

Inflation already breached the target in March, hitting a two-year high of 4.1% and bringing the three-month average to 2.8%.

The peso’s depreciation past the P61 mark “keeps imported inflation risks alive — fuel, food, and power costs rise — so the BSP’s hawkish bias stays intact and rate cuts are harder to justify,” Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

“From a markets perspective, fresh record lows hurt sentiment and raise risk premiums, while growth takes a near-term hit as higher inflation squeezes consumers and tight financial conditions curb investment.”

Meanwhile, Mr. Dacanay said the peso’s inflation pass-through may not be that strong yet at the present level as this depreciation was mostly expected, even before the Iran war broke out.

“So, all the prices that we see right now have already priced in the peso to reach P61 a dollar… So, right now, I don’t think there’s a huge inflationary effect, except for those that follow it quite closely, such as fuel and electricity.”

The BSP has said that it only intervenes in the foreign exchange market to temper sharp swings that could stoke inflation. Last week, Mr. Remolona said a 50-centavo move in one day is “a bit large.”

A trader said the peso may continue its slide if no resolution is reached between the US and Iran, adding that the local unit could trade between P61 and P61.50 a dollar on Wednesday.

“There is upside, but it hinges on a clear Federal Reserve pivot, stable oil prices, and a return of portfolio flows,” Mr. Ravelas said.

“Until then, expect continued volatility and mild depreciation rather than a sustained peso rebound.”

Five years after the initial promise, officials in the U.S. and Mexico are finally beginning construction on a key piece of infrastructure designed to keep sewage out of the Tijuana River.

That piece of infrastructure is a pump station known as PB-1. Baja California’s secretary of water called it “the heart of our wastewater system,” but it hasn’t been doing well for a while.

Our MacKenzie Elmer first wrote about plans to repair the pump station in 2021, but there’s been little progress since.

When it’s working, PB-1 is supposed to send sewage water to a treatment plant in Mexico and another in the U.S. But when it’s not working, it allows sewage to spill over into the Tijuana river, contaminating the water.

Officials on Monday announced they had finally selected a contracting firm, as well as an engineering and construction firm, to fix the ailing pump station. Unfortunately, it’s not the only piece of equipment in the Tijuana River sewage system that needs repairs.

Read the full story here.

County Will Pay Subcontractors Hit by Scandal

Weeks ago, our Lisa Halverstadt highlighted another set of victims in the criminal misappropriation scandal surrounding a former county contractor: nonprofit contract partners and workers who went months without pay.

The county announced Monday it will pay six former subcontractors of the Harm Reduction Coalition nearly $150,000. It had previously directed those subcontractors struggling with unpaid bills to work out a deal with the troubled nonprofit. The Harm Reduction Coalition’s ex-finance chief is accused of spending county money on everything from plastic surgeries to purebred dogs.

Halverstadt reports that the county has since decided to send money to those subcontractors “given the unique circumstances.”

Read the full story here.

In Other News

• A statewide voter ID initiative received enough signatures to appear on the November ballot, the secretary of state’s office confirmed. The initiative would require voters to present government-issued identification at the polls or provide identifying information when voting by mail. (NBC 7)
• Last month, San Diego residents planned a huge work-from-the-beach meet up last month in Pacific Beach. City officials are now saying any future meet ups like that one will need special event permits. (Times of San Diego)
• Related: Remember when Councilmember Sean Elo-Rivera said he wanted the city to stop killing free fun?
• San Diego County is the fifth most expensive place to own a home out of the 50 largest metro areas in the U.S., according to a new study by University of San Diego’s real estate school. (Union-Tribune)
• Have questions about how to vote, where to vote, mail-in ballots and more in the 2026 Primary Election? KPBS has answers. (KPBS)

The Morning Report was written by Tigist Layne and Lisa Halverstadt. It was edited by Will Huntsberry.

The post Morning Report: Finally, a Fix for Tijuana Sewage Pump appeared first on Voice of San Diego.

Most days, the immigration crackdown tightening its grip on San Diego’s border region is all but invisible. 

Then, suddenly, it’s not. 

Late last month, according to one eyewitness, five Ford Explorers with tinted windows screeched to a halt on a side street near Chula Vista’s Third Avenue business district. 

Immigration enforcement agents wearing masks and tactical gear leaped from the SUVs and began chasing a group of men on the sidewalk.  

The men, looking for work in Chula Vista after attending an asylum hearing in downtown San Diego, scattered. 

Authorities caught two of the men, according to a local activist who monitors Immigration and Customs Enforcement activity and witnessed the event. One escaped by jumping into a nearby backyard. 

“He was shaken up,” said the activist, who gave his name only as Aldo B. for fear of reprisal by authorities. “It’s the most powerful weapon in their toolkit: Fear. The fear they instill in the community. It’s an environment of uncertainty and instability.” 

It has been a little more than a year since President Donald Trump launched a nationwide crackdown on America’s roughly 14 million unauthorized immigrants. 

From the moment the highly publicized enforcement operation began, residents of South San Diego County, one of America’s most densely populated immigrant regions, feared the worst. 

What unfolded since then has not been what anyone expected. But it has shaken the proudly international region. 

South County, home to the world’s busiest transnational border crossing, is accustomed to immigration enforcement. Though comparisons are difficult because the Trump Administration has stopped updating several publicly available sources of immigration data, the region arguably saw more deportations during the Obama Administration than during Trump’s current surge. 

But today’s enforcement feels different, residents of South San Diego County say. The arrests seem more random. The agents act more ruthlessly. And the tactics sometimes appear flat-out unlawful. 

That has led to measurable declines in business activity, public transit ridership and even visits to low-cost health clinics. 

A once outward facing and aspirational region is suddenly anxious about its cross-border ties and uncertain of its future direction. 

“The human toll is serious,” said Chula Vista City Councilmember Jose Preciado, who said his office receives a steady stream of communication from residents anxious about immigration issues. 

“This federal government is turning its back on our immigrant traditions,” Preciado said. “We need to support as many people as we can.” 

It may seem hard to remember, but just 18 months ago, many South County voters welcomed the prospect of more immigration enforcement.  

Voters in the region shifted to the right, politically, in the 2024 presidential election, motivated in part by a sense that San Diego’s southern border had become too porous. 

Shortly after the election, a prominent local Democratic political consultant told Voice of San Diego local Democratic officials were engaged in a panicked “run to the middle” on the issue. 

“Stop talking about immigration,” said the consultant, who asked to remain unnamed to speak candidly of internal Democratic Party deliberations. “Just talk about renting a home and buying groceries…Latinos care about the same issues everyone else does.” 

At first, such advice seemed sensible. Trump’s shift in immigration policy was barely visible on the streets of southern San Diego County. 

Data from the Deportation Data Project, which publishes federal immigration enforcement statistics obtained via Freedom of Information Act requests, show that, during the first half of 2025, South County cities and communities saw comparatively few ICE arrests. 

In the first six months of 2025, ICE arrested more than twice as many people per capita in the northern San Diego County city of Escondido as in Chula Vista, even though Chula Vista, South County’s largest city, is more than twice as big as Escondido. 

By the second half of the year, however, enforcement activity began to rise. More alarming for residents, the rise followed no discernible pattern. 

In National City, which has one of South County’s highest concentrations of undocumented immigrants, immigration authorities arrested just three people in 2025, according to the Deportation Data Project – a decline from the previous year. 

In San Ysidro, by contrast, home to the region’s — and the world’s — busiest border crossing, there were 492 immigration arrests in 2025. That represented a sea change from the previous year, when the Data Project records no arrests at all. 

(Graeme Blair, a UCLA political scientist who helps direct the Data Project, said the lack of recorded 2024 arrests in San Ysidro possibly stems from changes in how federal officials reported arrest location information.) 

Though South County never saw the militarized enforcement operations that convulsed Los Angeles, Minneapolis and other cities, the slow-building wave of arrests felt harsher and less comprehensible than any the region had experienced before. 

Three of the San Ysidro arrests recorded in 2025 took place on Christmas Day. One of the people arrested that day was a 77-year-old woman from Mexico for whom the Deportation Data Project records no prior criminal record. 

Preciado, of Chula Vista, said authorities seemed to be arresting people at random, regardless of legal pretext. 

“I’ve always believed in the rule of law and due process,” he said. “These Trump policies are not what I’ve always known.” 

In Imperial Beach, a lull in arrests during the first half of the year suddenly gave way to 13 arrests in July, followed by sporadic bursts in August, October and November. 

Chula Vista saw seven arrests in January, followed by just three in February. Nine arrests in October were followed by just two in September. There were no arrests in December. 

“It will be dead for weeks, then a bunch of activity in a couple of days,” said activist Aldo B. of enforcement operations. 

For many, the unpredictability became the surge’s defining feature. 

“They are looking for people in schools and churches and homes,” said Antonio Cardenas, a Mexican citizen who lives in Tijuana and crosses the border regularly to shop and visit friends. 

Speaking one recent morning in San Ysidro, Cardenas said virtually everyone he knows on both sides of the border is reluctant to spend time in public in the United States because they simply don’t know what might happen. 

“We’re afraid,” he said. 

Maricela Flores, a salesperson for the cell phone provider TruConnect, said the pervasive atmosphere of low-grade fear has dampened business. 

“Business is down since last year,” she said earlier this month at a TruConnect sales pavilion across the street from the San Ysidro Transit Center. 

According to a recent San Diego Metropolitan Transit System mid-year performance report, ridership on trolley lines, including the Blue Line servicing the San Ysidro Transit Center, is down this year compared to the first quarter of last year. 

MTS CEO Sharon Cooney told agency board members in March officials believe “federal immigration enforcement” likely contributed to the unexpected ridership decline. 

“People in the community…are staying hidden,” said MTS board member and National City Councilmember Marcus Bush. “Businesses are losing because those that employ undocumented immigrants, it’s hard to hire people or sometimes employees don’t come to work.” 

Scott Andrews, president and CEO of local Neighborhood National Bank, confirmed the hiring challenges. 

“In some of the service industries, they’re definitely seeing issues with manpower,” Andrews said. “The labor pool has shrunk, and a lot of these might be immigrants crossing the border, and now they’re not.” 

Jim O’Callaghan, president and CEO of the South County Economic Development Council, said in addition to labor shortages, business owners he speaks to cite a more general pall of uncertainty clouding their prospects. 

“What we’re hearing and seeing is more trepidation and uncertainty than anything,” he said. “There’s a tightening of sorts from what they’d normally see of foot traffic. If they used to get the same visitor two times per week, now it’s once or none.” 

In Chula Vista, city officials last month were surprised to discover hotel tax revenue from bayfront hotels was less than officials had projected. 

The city’s finance director said hotel operators reported a decline in bookings from cross-border guests. 

Even local healthcare providers have experienced a change. 

San Ysidro Health, a network of federally subsidized low-cost health clinics that serves a predominantly Latino population in South San Diego County, reported a sudden drop-off in uninsured patients beginning in 2024, the year the Biden Administration began tightening border enforcement. 

California residents are eligible to pay for care at low-cost clinics via Medi-Cal, the state’s federally funded health insurance program. Mexican nationals crossing the border for treatment are not. 

The drop-off in uninsured patients continued last year, according to preliminary figures provided by a spokesperson for the San Ysidro clinic network. 

Overall growth in patients also slowed in 2024 and 2025, according to federal reports. And in 2024, the number of what the reports call “migratory and seasonal agricultural workers” plummeted from 377 to just 31. 

Giovanni Tec, the San Ysidro Health spokesperson, said equivalent migratory worker figures for 2025 are not yet available. 

Felix Gomez, a contract welder at San Diego’s naval shipyard, said foreign-born workers are crossing the border less because “there are no jobs here. In the last three to four months, it went down…People are staying in Tijuana waiting to work again.” 

Gomez said the job crunch is exacerbated by employers’ increasing strictness about employees’ authorization to work in the United States. 

“With no papers, you can’t get anything,” Gomez said. “Even with papers, it’s hard. Even with a Green Card or U.S. citizenship. Last year, it was okay. This year, it’s going down.” 

The ties binding South San Diego County with Mexico and other Latin American countries are deep. Residents said the sudden injection of fear into what once felt like routine cross-border connections has left them disoriented. 

“Chula Vista is the hub of the San Diego-Tijuana mega-region,” said Chula Vista Director of Economic Development David Graham in an interview last year. “Forty-three percent [of foreign-born residents in Chula Vista] entered [the U.S.] before 1990. They came to us three decades ago.” 

Now, those longtime residents say they are looking over their shoulders. 

Chula Vista Elementary School District Trustee Francisco Tamayo was born in Mexico and became a U.S. citizen nearly two decades ago. These days, he said, he carries his passport everywhere he goes. 

“Just in case,” he said. 

Tamayo and other local leaders said foreign-born residents often ask for help. But with little control over federal immigration policy, officials mostly have resorted to incremental measures. 

Chula Vista recently adopted an ordinance restating the city’s commitment to state-mandated limits on cooperation between local law enforcement and federal immigration authorities. 

The ordinance added provisions limiting disclosure of residents’ personal information and restricting immigration authorities’ access to certain city facilities. Still, it generated comparatively little public debate and has not quelled residents’ demands for help. 

At Southwestern College, which enrolls close to 600 students who are non-U.S. citizens, students packed a recent board of trustees meeting demanding a more vigorous response from school leaders to the immigration issue. 

Trustees hastily adopted a measure similar to Chula Vista’s last month. 

The rush to pass laws has led to debate among local leaders about how best to respond to the immigration crackdown. 

“If you can accomplish something, great. If not, don’t,” said National City Mayor Ron Morrison, explaining why his city has not rushed to emulate what he called other cities’ largely symbolic efforts. 

Morrison said though his city is home to a large foreign-born population, opinions about immigration policy vary widely. 

He cited recent social media posts critical of a Jan. 30 anti-ICE protest in National City that some residents said had devolved into what Morrison described as “people doing donuts” in their cars. 

Another recent social media post encouraging high school students to skip school to attend a protest “had 200 comments on it and 80 percent were against,” Morrison said. 

Absent unified political leadership, residents have begun taking matters into their own hands. 

On a recent Wednesday morning, roughly a dozen local activists gathered at a National City shopping center at the intersection of Plaza Boulevard and Highland Avenue. 

Brandishing signs and a bullhorn, the activists announced the formation of what they called the National City Defense Coalition, a partnership of local community groups that plans to train residents to spot, monitor and, if possible, disrupt the activities of federal immigration authorities. 

“A lot of people are really in fear,” said Izabella Lopez McGawley, a coalition leader. “We’re forming this coalition to stop that from happening.” 

Judy de los Santos said her organization, Union del Barrio of San Diego, would train coalition members in monitoring tactics. Already, she said, her organization has been monitoring ICE agents in Linda Vista, Escondido and other parts of San Diego County. 

“Today we’re adding National City to that work,” she said. 

Coalition members said they plan to canvas local neighborhoods, handing out flyers in Spanish and Tagalog and encouraging residents to call a network of volunteer responders whenever they see immigration agents in their neighborhoods. 

Aldo B., the Chula Vista activist, said it was a phone call from a watchful resident that alerted him to the enforcement operation against asylum seekers in his city. 

“There’s definitely a lot of fear in the community,” said McGawley. “At the same time, there are a lot of people who are agitated in the current situation and pushed to take action in ways they never felt the need to before.” 

“We’re looking at how to mobilize.” 

The post Immigration Enforcement Is Slowly Suffocating San Diego’s Border Region appeared first on Voice of San Diego.

ABOITIZ InfraCapital, Inc. (AIC), the infrastructure arm of the Aboitiz group, is raising its capital expenditure (capex) to P8.8 billion this year from P4.1 billion in 2025 to fund expansion across its airports, water, and telecommunications tower businesses.

“This will support growth and operational initiatives across our airports, water and Unity Digital Infrastructure, Inc.,” Aboitiz InfraCapital President and Chief Executive Officer Cosette V. Canilao said during Aboitiz Equity Ventures, Inc.’s (AEV) annual stockholders meeting on Monday.

Aboitiz InfraCapital is the infrastructure arm of listed conglomerate Aboitiz Equity Ventures, Inc., which also has interests in power, banking, food, infrastructure and artificial intelligence.

In a media release, AEV said it is earmarking P8.8 billion for infrastructure, water, and airports investments this year.

“While there are external headwinds, we expect the airport platform to remain a key contributor to growth for AIC this year,” Ms. Canilao said.

Aboitiz InfraCapital operates three of the country’s seven privatized airports: Mactan-Cebu International Airport, Laguindingan International Airport and Bohol-Panglao International Airport.

Ms. Canilao said airport operations continue to recover, driven by improving passenger traffic, strong operating performance and increasing commercial activity, despite geopolitical tensions in the Middle East.

She said Mactan-Cebu International Airport recorded its highest monthly passenger traffic in January this year, with first-quarter traffic exceeding expectations.

“The first quarter traffic was ahead of expectations. That said, we are closely monitoring the Middle East situation. If the conflict persists and fuel prices remain elevated, we may see some impact from early June onward,” Ms. Canilao said.

She added that any prolonged escalation in the Middle East could lead to higher airfares, route adjustments and reduced flight frequencies.

While some airlines have reduced flight frequencies, Dubai-based Emirates has resumed its daily Cebu service, helping offset the impact, she said.

Aboitiz InfraCapital is also exploring opportunities to expand its airport portfolio.

“We’re always on the lookout for new opportunities to add to our portfolio of airports where we can add more value. So, we are planning, but we know that there are very limited airports that might go to market. We are hoping that the government will also look at the other airports,” Ms. Canilao said.

Separately, the company said it is working to finalize a strategic partnership with Global Infrastructure Partners, a US-based infrastructure fund manager owned by BlackRock, Inc.

Aboitiz Equity Ventures earlier said the deal involves the acquisition of a 40% stake in Aboitiz InfraCapital by Global Infrastructure Partners. Once completed, the company expects to leverage the fund’s international network.

Global Infrastructure Partners manages more than $183 billion in infrastructure assets across sectors such as energy, transport, digital infrastructure and water, and holds stakes in major assets including London’s Gatwick Airport and Australia’s Port of Melbourne.

“The specific projects are still under discussion and will be firmed up following upcoming workshops and project identification activities with the PPP Center,” APECO President and Chief Executive Officer (CEO) Gil G. Taway IV told BusinessWorld.

“But priority infrastructure projects such as the Casiguran International New Port and the Casiguran International Airport are among those being considered for PPP structuring,” he added.

APECO and the PPP Center held a meeting last week to explore areas of support through capacity building and technical assistance for PPP project development, particularly in market sounding and investment promotion.

“The collaboration aims to support APECO in advancing its PPP initiatives across the project lifecycle that will contribute to the development of strategic infrastructure within the economic zone,” the PPP Center said in a statement last week.

After the meeting, the parties explored the possibility of formalizing the PPP Center’s technical assistance through a memorandum of agreement (MoA).

“APECO and the PPP Center are currently in the process of drafting the MoA, which is targeted to be signed by the third week of May,” said Mr. Taway.

“This will open new opportunities for private sector participation in building a dynamic, future-ready economic zone in Casiguran,” he added.

Under the MoA, the center will assist APECO in various areas, including identifying a pipeline of priority projects by yearend.

“The PPP Center is committed to helping APECO achieve its objective to build economically viable and quality PPP projects in their jurisdiction,” PPP Center Executive Director Rizza Blanco-Latorre said in a statement.

She said that the PPP projects help bring development to the area and open more opportunities for international trade by improving infrastructure and attracting foreign investments. 

The PPP Center is also engaging other government agencies to extend technical assistance that will support effective development, procurement and implementation of PPP projects in the country.

As of April 10, the PPP Center said that there are 251 projects with an estimated project cost of P3.3 trillion in the pipeline.

Of these, 167 projects are going to be implemented by the National Government while the remaining 84 projects are going to be implemented by local government units.

INVESTMENT HUB
Separately, APECO said it is exploring the Philippine Pharmaceutical Procurement, Inc.’s (PPPI) establishment of a pharmaceutical investment hub in Casiguran.

The PPPI identified research and development (R&D), clinical trials, and cold chain logistics and warehousing among the potential activities that could be hosted inside the proposed hub.

Mr. Taway said APECO is positioning the ecozone to host high-value industries that require reliable infrastructure, streamlined regulation, and long-term investment support.

“We are building APECO as a complete, investment-ready ecosystem. For industries like pharmaceuticals that demand stability, efficiency, and scale, our ecozone provides the environment where they can operate and grow with confidence,” he said.

APECO has identified 496 hectares for the proposed pharmaceutical hub out of the 12,923 hectares under its management.

“APECO’s ongoing efforts to strengthen power supply, water access, and logistics connectivity are critical in meeting the requirements of pharmaceutical locators, particularly in R&D, cold chain storage, and distribution,” he added.

If realized, PPPI President and CEO Maria Blanca Kim Bernardo-Lokin said that the initiative could help position the Philippines as a competitive hub for global pharmaceutical firms.

“This collaboration with APECO not only strengthens our role in the global pharma value chain but also directly supports the administration’s priority of improving access to affordable, quality healthcare for all Filipinos,” she was quoted as saying.

Ms. Bernardo-Lokin said that the PPPI has also partnered with Clark International Airport Corp. and the Bases Conversion and Development Authority for the establishment of other pharma hubs.

“APECO will be our third partner and right now, we are meeting with Cagayan Economic Zone Authority,” she added. — Justine Irish D. Tabile

“For May, we have yet to see possible yellow alerts,” Energy Undersecretary Rowena Cristina L. Guevara said in a virtual briefing on Monday.

However, Ms. Guevara said that grid alerts could still be raised in the event of a forced outage, particularly at coal-fired power plants, which typically encounter issues during the summer months.

“But if we are just to base it on the dependable capacity and the forecasted demand, supposedly we don’t have any yellow alerts,” she said.

A yellow alert is issued when the operating margin is insufficient to meet the transmission grid’s contingency requirement.

On April 16, the Luzon grid recorded its first yellow alert this year following the outage of a major gas-fired power plant and some hydropower plants.

A yellow alert was also raised over the Visayas grid due to the lack of power imported from Luzon.

Fears that the Iran war-driven oil crisis could push up electricity prices have led business groups and a senior government official to call for the lifting of the moratorium on new coal projects.

Despite expressing openness to the proposal last week, Energy Secretary Sharon S. Garin said the moratorium on new coal projects will remain in place.

“The moratorium is staying. There’s no lifting of the moratorium. What the DoE is doing is to have them produce more electricity,” she said.

Ms. Garin said coal-fired power projects with permits secured before 2019 may still proceed or be completed.

In 2020, the DoE issued a moratorium on the development of new coal-fired power plants, except for those coal-fired power projects falling under the conditions for non-coverage. The move was aimed at helping the country reduce carbon emissions and hasten the shift to clean energy.

Ms. Garin said the DoE is also assessing coal-fired plants for possible retirement.

“What we are also doing is checking all our coal power plants to determine which ones already need to be retired, because many of them — even if they are cheap — end up costing more for our consumers if they keep breaking down,” Ms. Garin said.

Coal remains the dominant source in the country’s power mix, accounting for more than 60% of electricity generation, followed by renewables and gas. 

While the country is trying to move away from fossil fuels and transition to clean energy, Ms. Garin previously said the department plans to temporarily increase coal-fired generation amid energy pressures. — Sheldeen Joy Talavera

KAYLA JOY T. AGANA had already mapped out the coming school year in her head — drop-offs before work, a steady weekly rhythm and a predictable calendar she could build her routine around.

But that plan began to unravel when she heard about the government’s proposal to shift to a three-term school calendar.

“It feels like an added burden for the parents because this is not just about the school schedule; it will directly affect us too,” said Ms. Agana, a 26-year-old government employee preparing to enroll her child in Grade 1 for the 2026-2027 academic year.

Like many working parents, she relies on consistency to manage both her job and childcare.

The prospect of longer breaks between terms, and the uncertainty of how these will be structured, has raised questions. “If it happens, I will have to figure out who will take care of my child during the breaks,” she said.

Her concerns come as the government moves forward with a major shift in the basic education calendar.

Last month, the Economy and Development Council approved the Department of Education’s (DepEd) proposal to adopt a trimester system beginning in the 2026-2027 school year.

The system will divide the academic year into three terms instead of the four-quarter system, with built-in breaks meant for assessment, remediation, and teacher training.

Under the setup, the first term will begin in June and run for 69 days, followed by a mix of instructional time and end-of-term activities. Subsequent terms will follow similar patterns, with dedicated periods for academic recovery and co-curricular work. The reform is meant to address persistent disruptions — particularly from typhoons — that have repeatedly cut into classroom time.

But for parents like Ms. Agana, the shift is less about pedagogy and more about daily life. “The plan was simple, it is to follow a stable and predictable school schedule,” she said. “Now, with the shift to a trimester system, it feels like we have to adjust all over again.”

Her skepticism is also shaped by experience. As part of the first batch to undergo the K-12 program, she recalls a system that felt rushed and, in her view, poorly implemented.

“It feels like I spent additional years but I did not really get to apply what I learned,” she said. “So, hearing about another big change makes me worried.”

Education stakeholders acknowledge that the reform carries both promise and risk.

Christopher “Happy” A. Tan, country head of PHINMA Education Philippines, said the trimester system could help preserve learning continuity in a country frequently hit by disruptions.

However, he stressed that success would depend heavily on how the system is implemented on the ground.

“DepEd’s new trimester calendar seeks to improve learning continuity amid repeated class disruptions,” he said in an e-mailed reply to questions. “But to make this work for all students — especially those from low-income backgrounds — we suggest close attention to how learning time is actually experienced on the ground.”

He noted that while the calendar includes enrichment or recovery periods, these could reduce total instructional time if not used effectively.

This makes real-time interventions during the term even more critical, particularly for students who may fall behind due to absences or other challenges.

‘NOT A SYSTEM REFORM’
The Philippine Business for Education (PBEd) said the reform is a step in the right direction — but not a complete solution.

“The move to a three-term school year is a practical step to better protect instructional time and allow for more structured learning and remediation,” PBEd Executive Director Hanibal E. Camua said via Viber. “However, it remains a calendar reform — not a system reform.”

He said improvements in curriculum delivery, assessment systems, and school-level execution should accompany the change.

Without these, the trimester calendar risks becoming a structural adjustment with limited impact on actual learning outcomes.

Teachers, meanwhile, are bracing for the transition.

Jessica P. Paz, a Grade 5 teacher with more than three decades of experience in a public school in Quezon province, said educators are concerned about the additional workload the system might bring.

“Teachers are worried because we think more work will be added to our responsibilities,” she said in Filipino.

She also expressed concern about how students — particularly those in lower-performing sections — would cope with a potentially more compressed pace of lessons under the trimester system.

“We fear that students will have an even harder time understanding lessons because the trimester system may compress the teaching pace, especially for those in lower sections,” she added.

Ms. Paz wants the government to provide sufficient training and reduce nonteaching tasks to help educators adapt.

“I hope that they will reduce our paperwork and give us more time to adjust,” she said, pointing to existing reporting requirements that already consume significant time.

Despite these concerns, some sectors see potential long-term benefits.

The IT and Business Process Association of the Philippines said the shift reflects efforts to strengthen learning continuity and improve workforce readiness.

“Talent development remains a priority for the IT-BPM (Information Technology and Business Process Management) industry, and more consistent instructional time can help strengthen the foundational and digital skills needed for the workforce,” it said in an e-mailed reply to questions.

Still, the consensus among educators and analysts is clear: the success of the trimester system will hinge not on the calendar itself, but on execution.

Clear learning targets, timely monitoring of student progress and effective remediation mechanisms are needed to ensure that no student is left behind, Mr. Camua said.

For Ms. Agana, however, those broader goals feel distant compared with the immediate realities she faces as a parent.

“All we want is something stable,” she said. “Everything else in our lives depends on that.”

MOTORISTS can expect another round of rollbacks this week, with diesel and kerosene prices set to decline for a third straight week.

The Department of Energy (DoE) said diesel prices should go down by at least P12.94 per liter, starting April 28.

“The estimated pump price range for diesel is from P75.93 to P101.96,” Energy Secretary Sharon S. Garin told reporters at a media briefing.

The DoE chief said fuel retailers should cut kerosene prices by at least P15.71 per liter.   

On the other hand, gasoline prices are expected to go up by as much as P0.53 per liter.

“This is being calculated based on specific accounting procedures. It is not just based on market behavior or expectations, but on what happened last week,” Ms. Garin said.

Unioil Petroleum Philippines, Inc. said it will implement the government-mandated price adjustments.

Ms. Garin warned that oil companies are mandated to comply with the price adjustment limits set by the government. She noted that if an oil firm does not follow the DoE advisory, then cases will be filed.

An industry source earlier said that the markets have remained highly event-driven, with shipping interruption and resulting disruption in supply flows triggering the volatility in prices.

The US-Israel war on Iran, which began on Feb. 28, has disrupted global oil supplies and drove crude oil prices up by around 50%.

RUSSIAN OIL
Meanwhile, the US has granted a one-month extension to the Philippines allowing it to purchase oil from Russia, Energy Undersecretary Alessandro O. Sales said.

“There’s a new waiver effective from April 17 to May 16… So, there is an existing waiver period again,” Mr. Sales said at the same press briefing.

Mr. Sales said that the one-month extension does not only apply to the Philippines, but other countries as well.

The Philippines had earlier asked the US to extend a waiver to purchase Russian oil after it expired on April 11,

The Philippines is a net importer of crude oil and sources most of its supply from the Middle East, the world’s biggest oil-producing region.

Seeking to diversify its energy sources, the Philippines has tapped Russian oil when the US temporarily lifted sanctions on imports for one month.

Last month, the country’s sole refiner, Petron, acquired 2.48 million barrels of Russian crude oil as “an extraordinary emergency measure” to source additional supply.

To boost oil buffer, the government has also moved to procure barrels of diesel since March from different countries through state-run Philippine National Oil Co.

Following the full delivery of four shipments of diesel, the Philippines has so far imported 1.12 million barrels.

“As the Middle East conflict continues, our priority is to ensure that the Philippines remains prepared, adequately supplied, and able to respond swiftly to developments that may affect fuel availability and market stability,” Ms. Garin said.

As of April 24, the Philippines’ fuel inventory could last for 54 days, increasing from the 52 days recorded last week.

The average inventory for gasoline is 53.91 days, while diesel has an average inventory of 54.61 days. Kerosene has an average inventory of 168.74 days, 70.83 days for jet fuel, 67.55 days for fuel oil, and 38.44 days for liquefied petroleum gas.

“The number of days didn’t decrease because the supply is being replenished continuously, even as we consume 34 million liters of diesel every day,” Ms. Garin said in Filipino.

The big package of reforms county supervisors want to put on the ballot has to go through one more approval before it’s officially something voters will consider in November. 

At least one state senator hopes they will change it significantly before it does. 

Sen. Catherine Blakespear told our Politics Report team that she finds the measure “outrageous” not because of what it does, necessarily, but because of when it does it. 

Main beef: Blakespear said she is uncharacteristically calling out her fellow Democrats at the county because the proposal includes limiting supervisors’ terms to three. Right now they’re limited to two terms in office. If, she says, such a change is a good one for the long term, then they should do it for future supervisors, not themselves. 

“It’s unquestionably a self-serving power grab. It gives us all a bad name,” she said. She also objected to parts of it that would limit the terms of the sheriff, district attorney, assessor and treasurer-tax collector. 

Also: We have a report about the disappointing revenue numbers from the trash tax the city began collecting. They didn’t anticipate people would want smaller bins at the level they do. 

The Politics Report is for Voice of San Diego donors. 

You can read it here.

Correction: The original version of the Politics Report included a line about what other legislators who represent San Diego think about putting term limits on the district attorney, sheriff and others. This was the result of a misunderstanding and has been removed. 

Sacramento Report: The ‘Stop Nick Shirley Bill’

Some Republican state lawmakers fear a proposed state bill intended to protect the privacy of people who work with immigrants would stop “citizen journalists” from investigating fraud. 

GOP lawmakers coined Assemblymember Mia Bonta’s bill the “Stop the Nick Shirley Act,” after a conservative activist whose videos about Somali-operated Minnesota day care centers spurred a immigration-enforcement surge. 

At the bill’s hearing, people testified they feared violence because they provide legal, health or social services to immigrants. Bonta’s bill would allow those workers to provide a substitute mailing address to the secretary of state’s office to protect their privacy, akin to survivors of sexual assault and domestic abuse. 

Nadia Lathan, our Sacramento Reporter, is also tracking a bill that would delay government response times to public records requests. Many city and county governments back the bill because they say people are abusing requests. First Amendment and civil liberties groups worry the elongated timeline would dissuade people from filing public records.

Read the full newsletter here.

VOSD Podcast: Those County Reforms

On the latest episode, our hosts talk about your ballot and the city of San Diego’s budget trouble.

First up! San Diego County supervisors have officially taken the first step to put a measure on the ballot that would extend their term limits. But there are other county government reforms in that measure that are way more interesting.

Next, Mayor Todd Gloria released his proposed budget. Some folks are very mad, but we saw that coming. We explain the proposed cuts on the show.

Finally: You got to be delusional to run for governor of California. The podcast crew goes through a voter guide to explore some of your more interesting options.

Listen here!

In Other News 

• Baja California officials convicted a woman to 20 years in prison in connection with the execution-style killings of surfers from San Diego and Australia two years ago. (NBC 7)
• SDG&E released a proposed route for a new transmission line from Imperial Valley to the Orange County border. At least one desert conservation group is already opposing the power line. (Union-Tribune)
• Construction on controversial tiny homes for unhoused people began in Lemon Grove. (Union-Tribune)
• New report says we have dirty air. (KPBS)

The post Morning Report: Senator Wants Redo on County Reforms appeared first on Voice of San Diego.

This post first appeared in the Politics Report.

The budget hits just keep coming.

The city expects to bring in less revenue with the trash fee than expected because some customers are returning their additional trash cans — while others are opting for lower-cost, smaller bins.  

The environmental services department projects it will generate approximately $123.9 million in revenue in the coming year. That’s about $9 million less than what city officials assumed in the department’s cost-of-service study.

The $9 million funding discrepancy is just the latest problem in San Diego’s troubled budget. Hundreds of people protested the mayor’s proposed cuts to libraries, recreation centers and the arts this week and a tough fight over what actually gets funded may be ahead. 

The city gives homeowners a menu of options for trash bins.  

The cheapest option starts at $32.82 a month. That gets you a 35-gallon trash bin. In the middle, there’s an option for a 65-gallon bin. And on the high end, $43.60 a month gets you a 95-gallon trash can. All of the options come with bins for recycling and organic waste.  

More homeowners are choosing the cheapest options, which means the city is bringing in less money than expected.

“The reasons for this decrease in revenue are customer selection changes that differ from the assumptions in the cost-of-service study,” wrote Jordan More, who works in the Office of the Independent Budget Analyst, in an email.

Officials with the Independent Budget Analyst’s office said they will provide more information on how the changing customer behavior is impacting revenue projections in a report they will publish next month.  

More said the environmental services department revenue estimate is based on customer behavior through January. The department anticipates a revenue adjustment in the May revision of the budget based on new data.  

For the current year, all homeowners actually paid the high-end cost of $43.60 per month. They will adjust and give credits on future tax bills, depending on the bin option residents chose. 

If a person requested and received a smaller trash bin, that’s credit that will go toward their next tax bill. If a person requested and received additional bins, they’ll owe more money.  

The post Trash Fee Bringing in Less Than Expected  appeared first on Voice of San Diego.

The county says it will pay subcontractors that were stiffed by the Harm Reduction Coalition of San Diego months before the county cancelled its contracts with the nonprofit last summer. 

The county announced Monday that it will send nearly $150,000 to six subcontractors after initially directing those strained by the unpaid bills to seek payment from the troubled nonprofit. 

The announcement comes as the criminal case against the Harm Reduction Coalition’s former finance chief expands to include three new felony charges, including for allegedly forging a $105,000 invoice to the county. Ex-COO Amy Knox had already faced six felony misappropriation charges for allegedly spending public money on everything from plastic surgery to purebred dogs.  

The missing payments to subcontractors – and previous bouncing or delayed checks from the nonprofit – were early signs of escalating financial chaos surrounding a nonprofit that once had two county contracts totaling $2.2 million annually. The county began learning of the Harm Reduction Coalition’s struggle to pay its bills in 2024. The situation only worsened as the months went on, raising questions about county oversight. 

On Monday, the county said it would collectively pay three partners on the Harm Reduction Coalition’s overdose reversal drug contract – SAY San Diego, A New PATH and Project AWARE Enterprises – nearly $74,000. UC San Diego, which partnered with the coalition on research and reviews of its county work, is also set to receive nearly $37,000 while drug testing technology firm Bruker Scientific LLC will get about $34,000. Sourcing and distribution company VIDL Sourcing will get a nearly $5,000 check. 

Voice of San Diego previously reported that the three organizations that partnered with the Harm Reduction Coalition on its county contract to deploy overdose reversal drug naloxone reported being collectively owed nearly $200,000 in county money that the coalition was supposed to distribute to them. A former Harm Reduction Coalition contract employee also told Voice that the Harm Reduction Coalition failed to pay her about $36,000 from March through July 2025.   

The county noted in its statement that the subcontractors may also seek restitution for additional unpaid bills through the ongoing criminal case. 

A New PATH Executive Director Gretchen Bergman, whose small nonprofit helped the Harm Reduction Coalition train San Diegans on how to use overdose reversal drug naloxone, said her organization now expects to receive about $40,000 of the roughly $100,000 it’s owed.  

Bergman said it was her understanding the county payouts covered work her organization and others completed in May and June 2025 that the Harm Reduction Coalition never billed the county for payment on. 

“I think it’s really positive,” Bergman said. 

The pile-up of unpaid bills previously forced A New Path to slash some full-time staffers’ hours by a quarter and temporarily led Bergman to give up her own salary. 

The county’s decision to pay subcontractors represents a shift from its initial position. First, it directed them to try to work something out with the Harm Reduction Coalition. 

Then, as Voice reported on the unpaid bills in March, a county spokesperson wrote that the payments were the Harm Reduction Coalition’s responsibility but that it was “exploring options” for reimbursing subcontractors.  

On Monday, the county said it ultimately decided to pay subcontractors due to “unique circumstances.” 

County spokesperson Tammy Glenn wrote in an email that the county decided to issue direct payments after confirming the subcontractors’ work fell within those county contracts, they could provide adequate documentation and that the Harm Reduction Coalition failed to submit invoices for their work.  

 Glenn separately noted in a statement that an independent auditor is now reviewing county contracting processes with the expectation of delivering a report next Monday. 

“Once the independent audit is complete, the county will evaluate the findings and determine additional steps needed to strengthen contracting practices and protect public resources,” Glenn wrote.  

The post County to Pay Harm Reduction Subcontractors $150K appeared first on Voice of San Diego.

In 2021, I wrote that a contract to fix an ailing wastewater pump in Tijuana would be awarded to a contractor that spring. 

It did happen in spring – only five years late.  

On Monday officials from Baja California and the U.S. convened outside that aging pump to announce construction would finally begin. The pump station, known as PB-1, is one of the many problem child pieces of infrastructure built to stop sewage spilling into the Tijuana River. It suffers mechanical failures, power outages and gets sent more water than it has the capacity to handle quite often.  

Tijuana’s topography allows most of its sewage to flow toward the border by gravity. But its wastewater system needs a few electric-powered pumps to blast it to treatment plants located across the border in the U.S. and one on the Mexican coastline.  

When PB-1 breaks, or there is simply too much water for it to handle, sewage spills into a border drain which empties in the river. (The river empties into the Pacific Ocean just south of Imperial Beach – thus polluting and closing shorelines due to contamination.) That happened just last month, though officials at the U.S. International Boundary and Water Commission said water didn’t make its way into the river that time.

“This is the heart of our wastewater system,” said Victor Manuel Barragán, Baja California’s secretary of water, during an interview Monday. “If this is not working then basically all of that sewage goes to the river.”  

The pump hasn’t been upgraded since 1998, said Nicolle de Leon, spokesperson for Tijuana’s  water and wastewater services commission called CESPT.

“After that date, equipment was only replaced sporadically or as needed,” she said.

The U.S. government is spending $13.4 million to rehab this pump station, a stone’s throw from the U.S.-Mexico border. The Mexican government plans to pay for the rest of the $30.8 million project.  

In this case, the U.S. is helping to pay for part of the project through the North American Development Bank or NADBANK, an investment tool created in the 1990s where both countries can put money to invest in international projects. Projects through the bank have to undergo more levels of scrutiny to ensure both countries know how the money is being spent.  

John Beckham, NADBANK’s managing director, said the project took five years to break ground in part because the project had to go out for public bid three times. The first two public bidding processes didn’t yield enough contractors who could meet NADBANK’s requirements. 

“There was a low level of certainty that the contractors and the equipment they were bidding was what we needed to do the job,” Beckham told me.  

A contracting firm in Tijuana called Urbanizadora ROMA SA de CV and an engineering and construction company based in Querétaro called Latinomericana Agua y Medio Ambiente eventually won the bid, according to Irma Flores, a spokesperson for NADBANK. 

Barragán estimated it would take 18 months to upgrade the sewage pump system.  

In Other News

• San Diego Mayor Todd Gloria’s proposed budget cuts money from a fund set up to build projects for underserved residents in the name of climate change. (Voice of San Diego) 
• San Diego’s Local Agency Formation Commission says dissolving the San Diego County Water Authority may be the best way to address regional water costs and needs in the future. (Voice of San Diego) 
• The city of San Diego’s new trash fee will bring in less revenue than expected because some customers are opting for smaller, lower-cost bins. (Voice of San Diego) 
• Great white sharks have abandoned their nursery in La Jolla making way for Baja California-based hammerhead, bull and tiger sharks to potentially take their place. (Union-Tribune) 
• SDG&E released a proposed route for a new transmission line from Imperial Valley to the Orange County border. At least one desert conservation group is already opposing the power line. (Union-Tribune) 
• New report says we have dirty air. (KPBS) 
• San Diego County has a brand new trail: Ruffin Canyon Trail, located between Serra Mesa and Mission Valley. (Union-Tribune) 

The post Environment Report: Finally, a Fix in the Works for Tijuana Sewage Pump appeared first on Voice of San Diego.

In a 17-page decision dated April 14, the CTA En Banc denied the petition for review filed by the Commissioner of Internal Revenue.

“The petition lacks merit,” the court said in the decision penned by Associate Justice Maria Rowena G. Modesto-San Pedro, upholding a previous Division ruling in favor of the beer giant.

SMB, which manufactures and distributes fermented malt-based beverages, had challenged the Bureau of Internal Revenue’s (BIR) implementation of certain excise tax rules.

The court said that some administrative issuances, including Revenue Memorandum Circular No. 90-2012, went beyond the authority granted under Republic Act (RA) No. 10351.

It also said the BIR’s “no downgrading” rule was inconsistent with the law’s requirement to classify products based on net retail prices.

The CTA said higher tax rates under Republic Act No. 11467 took effect only on Feb. 10, 2020, after publication in the Official Gazette, rather than the earlier January 2020 dates cited by the BIR through website posting. The court said printed publication is a due process requirement to notify affected taxpayers.

SMB is set to receive a refund totaling P1,068,775,829.04 for excise taxes collected during early 2020.

RENEWABLE ENERGY
In a separate development, San Miguel Global Power Holdings Corp. (SMGP), the power generation arm of SMC, has allocated about P4.49 billion for renewable energy (RE) investments after raising funds from the debt market.

In a regulatory filing on Friday, SMGP said it disbursed part of the net proceeds from its bond issuance to hydropower and solar projects.

The company raised up to P30 billion in fixed-rate bonds on April 17, with proceeds also earmarked for payments to suppliers, service providers, and contractors, as well as for withholding taxes and customs duties.

SMGP has also set aside P6.9 billion to refinance debt obligations, leaving a remaining balance of P18.56 billion.

The bond offer, issued through the Philippine Dealing & Exchange Corp., included three series maturing in 2031, 2033, and 2036. The offer covered P20 billion in fixed-rate bonds, with an oversubscription option of up to P10 billion.

SMGP tapped Bank of Commerce, BDO Capital & Investment Corp., and China Bank Capital Corp. as joint issue managers. They are joined by Land Bank of the Philippines, Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., and Security Bank Capital Investment Corp. as joint lead underwriters and bookrunners.

“The proceeds come at a critical time. As electricity demand continues to grow and the power sector faces supply tightness and volatile global fuel markets, these funds will support our efforts to ensure reliable and stable power supply for the country while advancing our investments in renewable and cleaner energy sources,” said SMGP General Manager Elenita Go.

SMGP is among the country’s largest power companies, with a diversified portfolio that includes natural gas, coal, and renewable energy such as hydroelectric power and battery energy storage systems. It also operates in retail electricity supply and has investments in distribution services. — Erika Mae P. Sinaking and Sheldeen Joy Talavera

In National Budget Circular No. 602, issued on April 23, the DBM directed state entities to adopt “economy measures” following the declaration of a national energy emergency in March.

The Philippines has been under a one-year state of national energy emergency since late March amid rising oil prices and dwindling fuel reserves.

The DBM circular covers all departments, agencies, and operating units of the National Government, including state universities and colleges, as well as government-owned and -controlled corporations receiving appropriations under the 2026 General Appropriations Act.

Offices with autonomy — including the legislative and judicial branches, the constitutional commissions, and local government units — were urged to implement similar measures.

“Through such cooperation, the collective efforts of the entire government will help ensure the efficient and effective promotion and protection of the interests of all Filipinos for the common good in this time of emergency,” the DBM said.

The circular outlines steps to generate funding sources that can be redirected to the programs, activities, and projects aimed at mitigating the economic and social impact of the crisis.

Agencies are required to cut at least 20% from selected maintenance and other operating expenses (MOOE), including travel, training and scholarships, supplies and materials, utilities and representation expenses.

“If there are some items from the foregoing enumeration that are deemed essential to the agency, the 20% cost reduction can be effected on the other non-essential or non-priority MOOE items,” it said.

The DBM also ordered the deferral of non-critical capital outlays, including the purchase of any motor vehicles that are not critical to health, uniformed services and disaster risk preparedness and response and the construction of new government facilities that are not yet ready for implementation.

Agencies were instructed to evaluate their unobligated allotments under the 2026 budget and identify programs, activities, and projects that may be offered as savings, provided these do not disrupt operations or affect service delivery.

All agencies covered by the circular should submit their proposed savings not later than May 15.

The DBM will submit a report on the programs offered as savings to fund mitigating measures related to the energy emergency.

Upon the approval of the President, the DBM will issue negative special allotment release orders (SARO) corresponding to the savings declared and SARO for memo entries to effect the use of savings and augmentation from the source to recipient agencies.

It will also issue SAROS to fund identified deficient programs related to the implementation of the Unified Package for Livelihoods, Industry, Food, and Transport framework.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the DBM directive is a “prudent short-term fiscal measure” designed to create space for targeted interventions without widening the budget deficit.

“It signals a shift toward spending reprioritization rather than additional borrowing, which helps preserve fiscal sustainability amid external shocks,” he said in a Viber message.

However, Mr. Rivera said that its effectiveness depends on execution, with agencies being tasked to ensure that the cuts will not affect critical services and project delivery.

“If done well, this can free up resources for more urgent needs while maintaining overall fiscal discipline,” he added.

The National Government’s budget deficit widened by almost 2% in March to P342.9 billion.

For the January-to-March period, the budget gap narrowed by 20.3% year on year to P355.5 billion amid double-digit growth in overall collections and muted spending. — Justine Irish D. Tabile

WATER PROVIDERS in Metro Manila and nearby areas are stepping up preparations to secure supply after the weather bureau warned of a possible El Niño developing by midyear.

Patrick James B. Dizon, department manager at MWSS Corporate Office, said the agency has directed the two concessionaires, Maynilad Water Services, Inc. and Manila Water Co., Inc., to continue implementing approved augmentation measures.

These include reopening of deepwells, optimizing treatment plant operations, reducing water losses, and deploying water tankers and static tanks, among others, to ensure they can be swiftly reactivated should water allocations from Angat Dam be reduced.

“Since the end quarter of last year, we have been continuously coordinating, not just to our concessionaires but also, to the stakeholders of Angat Dam,” Mr. Dizon told BusinessWorld.

Last week, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) raised its warning status to El Niño Alert from El Niño Watch, following the high likelihood of its development in the coming months.

PAGASA said that there is a 79% chance of an El Niño event emerging between July and August, with the weather pattern likely persisting until early 2027.

El Niño is a climate phenomenon that raises the likelihood of drier-than-normal conditions in some parts of the country, potentially triggering droughts and dry spells, while also bringing fewer but possibly stronger tropical cyclones.

The 2023-2024 El Niño was “one of the five strongest on record,” according to the World Meteorological Organization.

“As we expect that the El Niño will come this summer, the MWSS requested the NWRB (National Water Revenue Bureau) to increase the year-end elevation of Angat Dam,” Mr. Dizon said.

Angat Dam is the main source of water for Metro Manila, accounting for about 90% of the capital’s potable water.

Manila Water, which serves over 7.8 million customers in the east zone concession area, said it is pursuing strategies to reduce its reliance on Angat Dam by developing and continuously operating alternative water sources.

These include treatment facilities drawing from Laguna Lake such as the Cardona Water Treatment Plant and the East Bay Water Treatment Plant, as well as the Wawa-Calawis Water Supply System in Rizal Province.

“The recent full stewardship of the Upper Wawa Dam further strengthens supply reliability and builds long-term climate resilience for the East Zone,” Manila Water said in a statement to BusinessWorld.

The Upper Wawa Dam is a major infrastructure development designed to strengthen water security, which has the capacity to deliver up to 710 million liters of water per day.

“As climate risks intensify, Manila Water remains committed to investing in sustainable, diversified, and climate-resilient water sources, while working closely with national agencies to manage limited resources prudently,” it said.

Maynilad, which provides water and wastewater services to 10.5 million people in the west zone concession, said it is implementing a range of system optimization and supply augmentation measures to help ensure reliable water service during periods of higher demand.

These include pressure management across its distribution network, maximizing the output of treatment facilities, and continuing non-revenue water reduction efforts to recover additional water for customers.

“Preparing for the dry season is part of our regular operational planning, and we continuously refine these measures to improve system resilience,” Maynilad told BusinessWorld.

Among the key infrastructure projects under development to improve system resilience include of a 200-million-liter (ML) raw water reservoir at the La Mesa Compound and a 40-ML treated water reservoir in Valenzuela, which are designed to boost buffer storage to help stabilize supply and support more consistent water service.

“Our priority is to ensure that our customers continue to receive reliable water service, especially during periods of high demand,” Maynilad said in a separate statement. “We continuously implement and enhance our operational and infrastructure measures to strengthen the resilience of our system.”

While securing water supply is crucial, both Manila Water and Maynilad said that practicing responsible and efficient water use remains one of the most effective ways to help ensure adequate supply.

Metro Pacific Investments Corp., Maynilad’s majority shareholder, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.

Results of the Bangko Sentral ng Pilipinas’ (BSP) monthly business expectations survey (BES) showed the current-month confidence index (CI) plunged to -24.3% from 8.2% in February.

A negative CI shows that more respondents are pessimistic than optimistic.

The March CI was the weakest in more than 25 years or since the -32.6% recorded in the fourth quarter of 2001.

“Firms attributed their pessimism in March 2026 to the ongoing Middle East conflict, which had led to a sharp increase in domestic pump prices. Businesses consequently expect consumer spending to slow, as higher fuel costs are seen to feed into the prices of other basic goods and services,” the BSP said.

The business outlook for the second quarter also turned pessimistic, while firms grew less optimistic for the rest of the year.

According to the survey, the three-month ahead CI declined to -17.3% from 37.4% previously. On the other hand, the year-ahead CI slid to 11.7% from 51.1%.

“Respondents’ outlook for both periods weakened on expectations that the adverse economic impact of the ongoing Middle East conflict may persist,” the BSP said.

Iran effectively closed the Strait of Hormuz after the US-Israeli war with Iran began on Feb. 28. This disrupted global energy markets, sending crude prices soaring and impacting import-reliant economies such as the Philippines.

The BSP survey showed firms expect tighter cash position and credit access, as the financial condition index turned more negative to -24.9% in March from -15.2% in February. The credit access index also turned negative to -7.1% from 4% in the previous month.

Financial condition refers to a firm’s general cash position considering the level of cash and other cash items and repayment terms on loans, while credit access refers to the environment external to the firm, such as the availability of credit in the banking system and other financial institutions.

Meanwhile, businesses in the industry and construction sectors reported higher average capacity utilization at 73.1% in March from 67.2% in February.

Firms in the electricity, gas, and water subsector also saw an uptick in activity at the start of the summer season.

“Businesses cited stiff domestic competition, insufficient demand, and high interest rates as major constraints to their business activities. They also cited the impact of oil price hikes, stemming from the ongoing Middle East conflict, as an emerging business constraint due to higher production cost,” the BSP said.

The survey also showed firms’ employment outlook indices turned negative to -0.1% for June from 27.2% previously. For the year ahead, the hiring outlook fell to 10% from 30% previously.

However, businesses still see room for expansion as the share of industry firms with expansion plans for June and the next 12 months increased.

“Despite prevailing uncertainties, some companies indicated that they would proceed with their expansion plans, as these were already in the pipeline even before the Middle East conflict started,” the BSP said.

Firms also expect the peso to depreciate in the second quarter and over the next 12 months. Respondents anticipated the local unit to average P59.60 in June, and P60 over the next 12 months.

On Friday, the local unit closed at P60.70 against the dollar, weakening by 22 centavos from its P60.48 finish on Thursday, Bankers Association of the Philippines data showed.

Businesses also expect peso borrowing rates to increase moving forward, while business inflation expectations rose.

More businesses expected inflation to average 2.8% in March, and anticipate inflation to average 3.1% in June and 3.3% in the next 12 months.

In March, headline inflation rose to a near two-year high of 4.1%.

The central bank now expects inflation to average 6.3% this year and 4.3% next year, both above its 4% ceiling, before returning to its tolerance range in 2028.

The BSP’s March BES covered 515 firms and was conducted from March 5 to 31.

Q1 CONSUMER CONFIDENCE
Meanwhile, consumer confidence improved in the first quarter, “reflecting conditions prior to the onset of the Middle East conflict,” the BSP said.

The BSP said the first quarter consumer expectation survey  was conducted from Jan. 22 to Feb. 5, before the US-Israeli war on Iran started.

The survey showed that the current-quarter CI turned less negative to -15.8% in the first quarter, from -22.2% in the fourth quarter of 2025. This means there was a bigger drop in the share of pessimistic respondents than in the share of optimistic respondents.

“Respondents were less pessimistic in Q1 2026 as they expect: higher earnings, stable jobs, new income sources, and more family members joining the workforce,” it said.

For the quarter ahead, the CI slipped to 1.8% from 3.6% previously. For the year ahead, the CI also dropped to 9.6% in the first quarter from 11.8% previously.

“The less upbeat outlook of consumers for both periods reflected concerns over graft and corruption in the government, higher inflation, and ineffective government policies and programs,” the BSP said.

Consumer confidence also improved across different income groups.

For the April-to-June period, the outlook was still pessimistic among the low-income group but softened among the middle-income and high-income groups.

However, the outlook for the next 12 months became less optimistic among the low-income and middle-income groups. — Aaron Michael C. Sy

Last week, the central bank ended its easing cycle as it hiked the key policy rate by 25 bps to 4.5% and signaled more rate hikes could follow to safeguard spiraling prices due to the Iran war.

“We think BSP is likely to continue with its monetary policy tightening, and would choose to act sooner rather than later, especially as it had already forecast above-target inflation for two years over 2026 to 2027,” Deutsche Bank Research said in a note. 

Deutsche Bank Research said it sees the BSP hiking rates by 25 bps at its June 18 and Aug. 27 meetings to bring the policy rate to 5%.

ANZ Research said it also expects the BSP to deliver two more 25-bp rate hikes at its next two meetings.

“With BSP’s nominal policy rate now at 4.5% and inflation in April likely to be higher, the real policy rate has come down sharply closer to zero from its elevated levels earlier this year. As inflation surpasses 5% year on year in the coming months, the real policy rate is set

to turn negative. This will allow for an accommodative monetary policy which can support growth despite rate hikes,” ANZ Research said.

In March, headline inflation rose to a near two-year high of 4.1%, faster than the BSP’s 3.1%-3.9% forecast and 2%-4% target for the year.

The central bank now expects inflation to average 6.3% this year and 4.3% next year, both above its 4% ceiling, before returning to its tolerance range in 2028.

In an April 23 note, ING Think Asia Pacific Regional Head of Research Deepali Bhargava said the BSP is set to tighten further in a “front loaded but measured manner” following the revision in its inflation forecasts.

“Fast but measured rate hikes are likely ahead. With inflation projected to average 6.3% in 2026, the BSP is unlikely to be done tightening,” Ms. Bhargava said.

“We now expect an additional 50 bps of hikes in 2026, assuming material de-escalation in the US-Iran conflict by the end of the second quarter. However, should disruptions persist, and Brent prices remain above $100/bbl for most of 2026, a deeper and more aggressive hiking cycle would likely follow,” she added.

BSP Governor Eli M. Remolona, Jr. said on Friday that the central bank is prepared to do whatever necessary to contain inflation, leaving the door wide open to more rate hikes.

“The market needs to understand that we will do what is necessary to contain inflation,” he said in an interview with Bloomberg TV. “At the moment, that seems like a succession of modest rate hikes.”

Citibank said in its base case scenario, the BSP will have a follow-up hike of 25 bps in June before a pause.

“We think BSP will aim to keep real policy rates in accommodative territory given the weak starting point of GDP growth going into the energy shock… Our June policy rate forecast of 4.75% would be around 45 bps above BSP’s existing 2027 inflation rate forecast of 4.3%, and we think BSP will stop there,” Citibank said.

However, Citibank said the balance of risks is higher for an additional 25-bp hike in August, compared to a pause in June.

“A follow-up 25-bp hike in August could materialize, e.g., if BSP’s 2027 inflation forecast moves higher in the coming months, or if BSP’s attention on exchange rate pass-through increases. So far, we sense that BSP is not overly concerned on the inflation impact of recent exchange rate movements,” it said.

Citibank said an additional hike in August would still leave real policy rates negative for the year.

“This suggests that even two more hikes could keep policy appropriately accommodative, in line with the negative output gap and supply-driven nature of the shock,” it added.

For its part, BMI sees one more 25-bp rate hike in June to help re-anchor inflation expectations, before pausing amid risks to growth.

‘ONE AND DONE’
Meanwhile, Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said the BSP’s latest hike will be “one and done.”

Mr. Chanco said they have also hiked its inflation forecasts to “only” 4.6% this year from 4.2% previously, and 3.5% in 2027 from 3.1% previously.

“If our more modest outlook is right, then the April hike probably will be just ‘one and done,’ with the BSP’s next move likely to be a cut this time next year, when the current supply shock starts to drop out of the year-over-year inflation picture,” he said. — AMCS

Our Voice of San Diego reporters were busy this week reporting on stories that impact our communities. Here’s what you need to know to start your week.

Grab some cafecito chismosos!

Budget, Budget, Budget!

San Diego Mayor Todd Gloria released his proposed budget last week.

Rather than jumping on the daily train, our reporters took their time with the proposal to uncover some interesting stories about what’s at stake.

Big picture: We know city leaders need to close a $146 million budget deficit. To do that, they’ll have to make some tough choices. This was our first glimpse into how those choices would manifest.

Cuts to the arts! Our Bella Ross attended a protest against Gloria’s proposed cuts to funding for arts grants and library and recreation center hours. A lot of people are pissed, no surprise, and want to see the City Council propose an alternative option.

You can watch Bella’s video here. Former Voice reporter Deborah Brennan did a great job breaking down the arts funding issue for CalMatters.

Climate dollars! MacKenzie Elmer identified an interesting proposal. She reported that the city’s Climate Equity Fund is going to take a hit too. Instead of making a $7 million contribution to this fund, which pays for climate projects in poor communities, the city is going to keep the money in the General Fund.

Is there something you’d like us to dig into? Send me a note at andrea.sanchez@voiceofsandiego.org.

Former CEO’s Rocky Past

The agency that oversees the Del Mar Fairgrounds fired its CEO last week and our North County reporter wanted to know what happened.

Tigist Layne reported that the 22nd District Agricultural Association Board of Directors voted to fire CEO Carlene Moore and named the board’s chairman interim CEO for 10 days.

No one would tell Tigist why Moore was fired, but she did dig up information about Moore’s trouble at a previous job at the Napa County Fairgrounds. You can read the full story here.

New: The board of directors appointed Rebecca “Becky” Bartling as CEO through at least September 2027, according to a press release sent on Friday.

The fair opens on June 10. Chairman Sam Nejabat said he is confident staff will execute a successful event.

An Anxious Flyer’s Worst Nightmare

You could not pay me enough to live in this Coronado mansion.

South County reporter Jim Hinch caught wind of a development that has a yacht community in Coronado in an uproar. No, it’s not a massive apartment complex, it’s a house with a rooftop jet.

(As a certified anxious flyer, living in a home with a plane on top of the roof sounds like a nightmare. It would be a constant reminder of flying; my hands are getting clammy just thinking about it.)

Jim spoke to residents and reached out to the developer to understand the beef. It’s worth a read and has great photos of the project. Read it here.

In Other News

I missed my newsletter last week — blame it on the reporters who kept me busy, just kidding. Here are other Voice of San Diego stories you should read.

• Mariana Martínez Barba wrote about the fire station in southeastern San Diego that is still temporary despite officials’ promises to build a permanent station 11 years ago. Read the story here.
• Martínez Barba also wrote about the homeless encampment near a freeway that officials have cleared more than 70 times because people keep returning.
• The county hired a PR firm to deal with a contractor scandal. More deets here.
• Do you want to spice up your lunch break? Donate $120 or more and get a fabulous VOSD lunch bag. Support our journalism here.

The post Cup of Chisme: Quick Hits appeared first on Voice of San Diego.

Sometimes when you’ve got too much politics on the brain, it’s hard not to see things elected officials say as they may appear on a mailer.

State Sen. Catherine Blakespear just said some things about the big county governance reforms headed to the ballot this November that could make for good mailers for someone paying to oppose them.

“I think it is outrageous and they need to change course,” Blakespear said. She said she can support all the changes in the package, she just can’t support extending the term limits for current supervisors. Right now, supervisors can only serve two terms. If voters approve the measure as it’s currently written, current supervisors could do third terms.

“They still have three weeks to change course,” Blakespear said. While the Board did approve the measure for the ballot, it must be reaffirmed with another vote. “It’s unquestionably a self-serving power grab. It gives us all a bad name.”

She said she could support making the term limit three. But she said it should have been written to apply to future elected leaders.

She also said that another provision that would put term limits on the other elected leaders of the county — the sheriff, district attorney, treasurer-tax collector and assessor — was a mistake.

It conflicts with state law and supervisors tried to write that it would kick in only if state law changes. Blakespear said none of the San Diego legislative representatives want to change that law and it would cause an immediate and unnecessary legal fight with the state.

She supports all the other parts of the measure and actually articulated arguments for them well – the county does need to be able to move its bureaucracy better to accomplish things.

“My hope is the three supervisors who voted for this remove those objectionable parts of the proposal and it succeeds,” she said.

About those mailers: The thing is, to put some spicy quotes on mailers costs money and it’s not clear who, if anyone, has enough money at stake to want to pay for any opposition campaign efforts to defeat the measure.

About the reform: We talked about it at length on the podcast this week.

Trash Fee Bringing in Less Than Expected 

The budget hits just keep coming.

The city expects to bring in less revenue with the trash fee than expected because some customers are returning their additional trash cans — while others are opting for lower-cost, smaller bins.  

The environmental services department projects it will generate approximately $123.9 million in revenue in the coming year. That’s about $9 million less than what city officials assumed in the department’s cost-of-service study.

The $9 million funding discrepancy is just the latest problem in San Diego’s troubled budget. Hundreds of people protested the mayor’s proposed cuts to libraries, recreation centers and the arts this week and a tough fight over what actually gets funded may be ahead. 

The city gives homeowners a menu of options for trash bins.  

The cheapest option starts at $32.82 a month. That gets you a 35-gallon trash bin. In the middle, there’s an option for a 65-gallon bin. And on the high end, $43.60 a month gets you a 95-gallon trash can. All of the options come with bins for recycling and organic waste.  

More homeowners are choosing the cheapest options, which means the city is bringing in less money than expected.

“The reasons for this decrease in revenue are customer selection changes that differ from the assumptions in the cost-of-service study,” wrote Jordan More, who works in the Office of the Independent Budget Analyst, in an email.

Officials with the Independent Budget Analyst’s office said they will provide more information on how the changing customer behavior is impacting revenue projections in a report they will publish next month.  

More said the environmental services department revenue estimate is based on customer behavior through January. The department anticipates a revenue adjustment in the May revision of the budget based on new data.  

For the current year, all homeowners actually paid the high-end cost of $43.60 per month. They will adjust and give credits on future tax bills, depending on the bin option residents chose. 

If a person requested and received a smaller trash bin, that’s credit that will go toward their next tax bill. If a person requested and received additional bins, they’ll owe more money.  

South San Diego Council Candidates Pitch New Revenue

At a candidates forum for City Council District 8 – which represents Barrio Logan, Sherman Heights, San Ysidro and other southern San Diego neighborhoods – Venus Molina said she wanted to bring back a sales tax measure.  

Molina works as chief of staff to District 2 Councilmember Jennifer Campbell and is one of four candidates running for the seat.  

“The sales tax – that’s something that actually was really popular when it comes to Districts 8, 4, and 9,” she said. “It was districts up north that actually didn’t support the sales tax. But our communities understood that a sales tax is something that actually would benefit us when it comes to infrastructure, when it comes to, like I said, our basics.”

Two of the other candidates also had ideas for new revenue, though they didn’t go as far as proposing a tax.

Antonio Martinez, who serves as a San Ysidro school district board member, said he wants to increase rent on city leases. He also wants to do an audit to see if there are businesses and organizations that are “not paying their fair share of taxes.”

Gerardo Ramirez, who works as chief of staff to District 8 Councilmember Vivian Moreno, said the city needs to apply for more grant funding. 

“We are leaving money at the table when it comes to grants. San Jose, Oakland, Sacramento, they’re all getting more money per capita than the city of San Diego. Why? Because we are not applying,” he said. 

Quite a Week for Ammar

It comes up every time he runs and its very unfair but it happened again this week: Ammar Campa-Najjar was attacked because he is the grandson of a bad person.

This week it came from Laura Loomer, the president’s friend known for her racist and inflamatory attacks. “Crazy that Ammar Campa Najjar … is allowed to even serve in the US military and that he’s dating [U.S. Rep. Sara Jacobs] … when he is the grandson of Muhammad Yousef al-Najjar,” she posted this week.

He has long renounced his grandfather, a Palestinian who died before Campa Najjar was born. Here’s how the U-T described the grandfather in 2018.

“Campa-Najjar’s paternal grandfather was Muhammad Yusuf al-Najjar, head of the intelligence wing of Fatah, the political party founded by Palestinian political leader Yasser Arafat. Some Fatah members formed the Black September organization, a terrorist group that was responsible for a series of attacks against Israelis, including the 1972 killing of 11 athletes and coaches at the Munich Olympics.

“Israel launched a series of responses to the Munich attack, including a 1973 commando raid in Beirut, Lebanon, where Yusuf al-Najjar and his wife were both killed.”

You don’t pick your grandparents. The president’s party has a lot of voices overtly, or getting really close to, saying people shouldn’t be allowed to be part of American civic life because of their ethnic backgrounds.

But then he got hit for a legit flub: The Navy reprimanded Campa-Najjar for campaign materials that inappropriately used Navy imagery.

KPBS: “Pentagon regulations allow reservists to run for office but restrict how they can use their military status and photos. Department of Defense Directive 1344.10 says reservists ‘must clearly indicate their retired or reserve status’ when referencing their service.”

This is an unforced error by Campa-Najjar, who described himself as an officer but didn’t clarify that it was in the Reserve.

But then he got a big financial boost: A Jeff Bezos-backed group and Irwin Jacobs have put $750,000 into an independent campaign supporting Campa-Najjar. Times of SD has the details.

This should more than make up for any shortfall he has in campaign cash on hand.

If you have any feedback or ideas for the Politics Report, send them to scott.lewis@voiceofsandiego.org or will.huntsberry@voiceofsandiego.org.

The post Politics Report: Dem Calls County Reform ‘Outrageous’ appeared first on Voice of San Diego.

In a press release, the DICT said the improvements focus on upgrading the platform’s servers and adding more cloud capacity to accommodate increasing user demand.

The agency also said it is working closely with various government agencies to ensure their systems remain stable and well integrated into the platform.

“Instead of relying only on a central system, agencies are now expected to better manage their own systems while staying connected through the eGovPH platform,” David L. Almirol Jr., undersecretary for e-Government at the DICT, said in a statement.

“This is meant to reduce bottlenecks and prevent system-wide outages,” he added.

Mr. Almirol also said the government is seeking additional funding to support the platform’s upgrades.

These efforts come in response to the outage, with reports first surfacing online around April 13. Users experienced difficulty logging in and accessing basic app services.

The DICT clarified that the disruption was caused by overwhelming traffic on the system, particularly following the rollout of new features such as eGov AI.

With around 40 million downloads of the app and continuing growth, Mr. Almirol said the agency is focused on building a stronger and more reliable system capable of handling millions of users without disruption. — Edg Adrian A. Eva

The Sy-led bank’s earnings climbed to P20.1 billion in the first three months from P19.7 billion in the same period last year, it said in a disclosure to the stock exchange on Friday.

This translated to a return on equity of 12.76, down from 13.77% in the same period last year. Return on average assets also declined to 1.47% from 1.64%.

“We saw continued growth in our [net interest] income. Although you will see the first quarter is a little weak, we think it’s a timing issue. We should be in the double-digit trend going into … the rest of the year. We continue with our strategic investments, and they’re now starting to yield benefit for us,” BDO President and Chief Executive Officer Nestor V. Tan said in a briefing following their annual stockholders’ meeting on Friday.

Net interest income increased by 11% to P53 billion in the first quarter from P47.8 billion a year ago amid growth in its earning assets, with interest expense and interest income both rising by 11% to P77.5 billion and P24.4 billion, respectively.

BDO’s gross loans rose by 16% year on year to P3.77 trillion at end-March from P3.26 trillion amid double-digit growth across all market segments.

Nonperforming loan (NPL) ratio also improved to 1.68% from 1.77%. NPL cover went down to 131.9% from 143.4%.

Mr. Tan said they saw margin pressure despite higher loans due to the central bank’s monetary easing cycle. Net interest margin was at 4.2% in the period, down from 4.31% a year ago.

Non-interest income rose by 6% to P19.8 billion from P18.6 billion.

“Fee income moderated at 4%. A big portion of this is the capital markets and investment banking. It has almost dried up as a result of the [Middle East] conflict. So, nobody wants to make big transactions. However, trading and income from operations remain strong, and this is already tempered by mark-to-market losses. So, with that, these two income categories would have been higher if not for the major mark-to-market losses,” Mr. Tan added.

Income from the bank’s insurance operations rose by 27% to P2.1 billion from P1.7 billion, compensating for the slower fee income growth, he said.

Meanwhile, BDO’s operating expenses went up by 6% year on year to P43.4 billion in the first quarter from P40.9 billion.

As a result, cost-to-income ratio improved to 58% from 60.1%.

The bank also set aside provisions amounting to P6.1 billion during the period, more than double the P3 billion a year ago as they preferred to keep a conservative stance due to faster growth in consumer loans.

Mr. Tan added that the bank made some “preemptive provisioning” for three accounts.

On the funding side, total deposits rose by 15% to P4.429 trillion from P3.847 trillion. Of this, P2.906 trillion were low-cost current account, savings account (CASA) deposits, up from P2.704 trillion the prior year.

The bank’s demand, savings, and time deposits grew by 11%, 6%, and 33%, respectively.

BDO’s assets expanded by 17% to P5.715 trillion at end-March from P4.904 trillion.

Total capital was at P645.7 billion, up 9% from P594.9 billion.

BDO’s capital adequacy ratio was 14.43%, down from 15.53% a year ago.

CAUTIOUS OPTIMISM
Mr. Tan said they remain optimistic about growth despite increased geopolitical risks that could affect public and private spending, adding that they still expect their loans to continue expanding at a double-digit pace.

“Well, given what we know now, it’s possible. We’re looking at that. Actually, the first quarter is at 16% growth, so that’s positive. But we do expect that to normalize,” he said.

“I’ve just been through a regional board meeting where they looked at bi-country consumption and investment patterns. And what they see is similar to what we see: a temporary slowdown and then a pickup or normalization of activity. So, do we see any slowdown relative to COVID? The answer is no. In fact, this one is stronger than what it was pre-crisis and very much stronger than COVID.”

On the other hand, delinquencies could increase due to the crisis, particularly in the consumer sector, but the hit to the bank’s asset quality would depend on how long the conflict lasts, Mr. Tan said.

“We believe that the pressure will be mostly in the consumer sector. And right now, we haven’t seen that yet in our portfolio.”

Despite this, he said they will tweak their credit underwriting standards for some consumer lending sectors.

Meanwhile, the bank could benefit from higher borrowing costs if the central bank continues its tightening cycle. The Bangko Sentral ng Pilipinas delivered its first rate hike in over two years on Thursday as it wants to contain the buildup in domestic inflation pressures amid the war-driven global oil shock.

“Well, it’s a two-edged sword. Margins will slowly go up, but it’s going to be tempered by competition. But funding costs will also be going up, and there’s a possibility that delinquencies will [go] up. So, we’ll have to look at the balance of all three,” Mr. Tan said.

BDO also wants to open 120 new branches this year.

The bank’s shares dropped by P2.70 or 2.29% to close at P115 each on Friday. — Aaron Michael C. Sy

​Of the 5 trillion annual searches globally, the company said signed-in users aged 18 to 24 generate more daily queries than any other age group, making Gen Z the most active group on Google Search.

This is driven by the group being AI-native users who resonate strongly with Google Search’s AI-integrated features, such as AI Mode and Search Live, which allow for a faster, more natural, and more intuitive way of finding information through text, voice, and visual search.

​Powered by Google’s most advanced multi-modal reasoning model, Gemini 3.1, Search can now have intuitive, back-and-forth conversations to understand complex and highly nuanced intent.

“They are no longer just entering keywords; they are researching, planning, brainstorming, and even having conversations with Search,” Google said.

A majority of Gen Z, or 89%, use Google Search daily to make better decisions, such as finding good deals for upcoming travel, exploring the latest trends, and conducting deeper research on brands for smarter purchasing decisions, it said.

Gen Z also uses Search not only for information but also as part of their daily digital and fandom experience, with interactive features, trending insights, and cultural moments shaping how they engage with content.

Google said that Search reflects real-time Gen Z interests through tools like Google Trends and themed experiences tied to popular figures and events. More recently due to their performance at the Coachella 2026 music festival, “BINI Coachella” became one of the top search trends globally because of Filipino Gen Z BINI fans called “Blooms”. — Edg Adrian A. Eva

“This is to be done in phases. Within the first 2 years, we will be able to at least break ground the first phase of development,” BCDA President and Chief Executive Officer Joshua M. Bingcang said in a news briefing on Friday.

Earlier this week, the BCDA announced that it has allocated 4,000 acres (about 1,618 hectares) within New Clark City in Tarlac to build an AI-native industrial hub to support the development of an AI supply chain ecosystem here.

The facility will host the Pax Silica Coordination Office for technology firms, research institutions, and government agencies. The site will be designated as a “Golden Node,” or a new model for AI-native investment acceleration hubs.

“This will be a magnet for all other industries to come. So, it will be a haven for industrial development,” Mr. Bingcang said.

He said the hub will not be exclusive to American locators.

Trade Undersecretary Ceferino S. Rodolfo told reporters that the development will advance the Philippines’ role in the global AI supply chain ecosystem.

“There are countries and specific companies in AI-tech manufacturing, in transition energy, and in infrastructure that reached out to express the significance of Pax Silica to their investment plans,” he said, citing the interest of five companies from East Asia and America.

Mr. Bingcang noted that the investors will build the relevant infrastructure, roads, and utilities for the AI-native hub, subject to approval by the BCDA.

Under the BCDA’s proposal to the US government, the agency would grant a two-year grace period on lease payments for the property, serving as an unconditional in-kind contribution to support the initiative.

By the third year of the pact, the annual lease rate will be covered in a separate agreement.

Upon expiration of the initial lease period, the lease will be renewable upon the mutual written consent of the Philippine and US governments, on such terms as may be agreed at that time.

The property will be reverted back to the Philippine government upon termination or expiration of the lease.

Both countries have yet agree on the costs associated with the construction, outfitting, operation, maintenance, and staffing; as well as the precise location, boundaries, and legal description of the property.

The facility’s locators will be granted fiscal and non-fiscal incentives under Republic Act (RA) No. 12066 or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy; RA 7916 or the Special Economic Zone Act, and RA 7227 or the BCDA Charter.

“Further, it is understood that acceptance of this offer by the United States, specifically on relevant provisions related to in-kind contribution (i.e. grace period on lease), shall be effected in accordance with the laws and regulations of the United States, including 22 US Code § 2697 and applicable provisions of the Foreign Affairs Manual,” the BCDA said in its proposal.

The Tarlac office will function as a “principal bilateral facility” for the coordination of critical mineral supply chain security initiatives between the Philippines and the US; facilitation of a joint strategic industrial planning and infrastructure development within the Luzon Economic Corridor; and coordination of allied investment and private capital mobilization for economic security projects.

It will also support workforce development, technology transfer, and capacity-building activities aligned with bilateral economic security objectives; and other activities.

The hub aligns with the Philippines’ formal entry into the Washington-led Pax Silica initiative, which seeks to link the global supply chain on AI, semiconductors, critical minerals, and advanced manufacturing. — Beatriz Marie D. Cruz

Called Wegovy, the drug contains semaglutide, a molecule that mimics the body’s natural hormone responsible for regulating appetite, GLP-1.

This helps users feel fuller, which may support weight reduction when combined with proper diet and physical activity.

A key question is whether it is similar to Ozempic, the company’s other semaglutide-based treatment first introduced in 2017. Novo Nordisk Philippines general manager Wei Sun told BusinessWorld that it is not the same, noting that Wegovy is indicated for weight management, while Ozempic is intended for type 2 diabetes.

The two also differ in dosage.

“Ozempic has a lower dose, which is ideal for diabetic patients, while Wegovy starts at a lower dose but (progresses) to higher doses,” Ms. Sun said in an interview on the sidelines of the Wegovy media launch.

“The interesting thing about the GLP-1 molecule is that the higher the dose, the greater the weight loss effect,” she added.

Wegovy is indicated for adults with obesity (BMI ≥30 kg/m²) or those who are overweight (BMI ≥27 kg/m²) with at least one weight-related comorbidity, such as diabetes.

It is administered once weekly and must be used under a doctor’s supervision.

Wegovy is approved by the Philippine Food and Drug Administration (FDA) as a prescription medicine, with available semaglutide injection strengths of 0.25 mg, 0.5 mg, 1 mg, 1.7 mg, and 2.4 mg listed on its verification portal.

As for side effects, Ms. Sun said the most common are gastrointestinal, such as nausea, vomiting, and diarrhea, ranging from mild to moderate, and may improve over time.

She added that the medication will be available in leading drugstores in Metro Manila, with rollout to key cities nationwide expected to follow. Pricing may vary per pharmacy, Ms. Sun said.— Edg Adrian A. Eva

Getting rid of the San Diego County Water Authority might be the best way to address regional water costs and needs in the future. 

That’s what the plurality of concepts studied by the San Diego Local Agency Formation Commission or LAFCO, suggest under its first audit of the county’s water wholesaler. The Water Authority fell under LAFCO’s scrutiny a few years ago after two member water districts fought to leave the agency over its high water prices. 

So LAFCO decided to do what’s called a municipal service review of the Water Authority, which is basically an audit with recommendations on how to fix certain problems. 

LAFCO came up with three possible solutions to the Water Authority’s dire financial straits: Dissolve the Water Authority into smaller water wholesale regions; or dissolve it and form a new special district to manage water treatment and reservoir storage while giving the rest of the Water Authority’s assets to the Metropolitan Water District of Southern California. The third option is to actually expand the Water Authority’s power by letting it absorb its 22 member water districts’ role of selling water to cities and the county. 

In water world, dissolving the Water Authority and redistributing its power to Metropolitan is likely to really raise some eyebrows. There’s been longstanding hate between these two agencies due to a protracted legal battle, settled only recently, over the cost of moving water from one to the other. And its member water district’s eyebrows may actually fall off at the suggestion that the Water Authority absorb their power to sell water. Some local water districts have their own water resources or are embarking on expensive projects to create their own by recycling water to try and save their customers’ money.

Importantly, LAFCO is giving the Water Authority two years to get its house in order. The report gave a nod to leadership change at the Water Authority, General Manager Dan Denham.

“It is appropriate to allow current internal reforms time to demonstrate effectiveness before committing resources to explore fundamental organizational alternatives,” the report reads. 

In other words, let’s give the Water Authority some time to make good on commitments to sell off expensive water supplies and hopefully bring down water rates. 

The Water Authority responded to the report in a March 23 letter. The agency said LAFCO relied on “outdated and conflicting information” for some of its conclusions. And it asked for LAFCO to come back in five years instead of two to allow reforms going on within the agency right now “to mature.”

The agency reported that it has begun a process to review its business model working with general managers of its member agency water districts. 

Denham has already been successful selling water. Under his leadership, the Water Authority has made two deals to sell water to thirsty water districts in Riverside County.

LAFCO can initiate a breakup of government service agencies if it believes the business model of the agency is substantively flawed. It has jurisdiction over boundaries endowed by the state legislature and also has the power to annex cities or services together. 

The Water Authority now works like this: It acts sort of as a middle man, buying Colorado River water and water from northern California from the Metropolitan Water District of Southern California based in Los Angeles. Then, the Water Authority turns around and resells that water to 22 smaller, local water districts that service residents within cities and the county. 

But the cost of water has been skyrocketing due in large part to a bunch of spending the Water Authority did years ago to ensure the region had a reliable water supply, especially during droughts. It made deals with farmers in Imperial Valley to buy Colorado River water that’s legally protected from being cut as droughts worsen in the West, and it built a desalination plant in Carlsbad that makes ocean water drinkable but at a very high price. 

LAFCO’s analysts nudged the Water Authority with a few recommendations in its report. LAFCO said the agency should fix its governing board’s voting structure as the city of San Diego prepares to use recycled water and buy a lot less from the agency. As the Water Authority’s biggest customer, the agency is going to take a big hit in revenue when the city does this. 

Smaller water districts want more power at the Water Authority. Currently its board votes are weighted toward agencies that buy the most, like the city of San Diego.

LAFCO also suggested it generate revenue not just via water rates (or how much water they sell) but via a special property tax to help support the growing fixed costs associated with building and maintaining all the pipes, pumps and reservoirs the region needs to get and keep water here. The Metropolitan Water District of Southern California already does this. 

LAFCO is also going to take a look at Metropolitan’s finances and operations in a second part of this municipal service review slated to be released later this summer, said Priscilla Mumpower, assistant executive officer at San Diego LAFCO.

The post LAFCO: Dissolve the Water Authority? Not Yet. appeared first on Voice of San Diego.

Getting rid of the San Diego County Water Authority might be the best way to address regional water costs and needs in the future. 

That’s what the plurality of concepts studied by the San Diego Local Agency Formation Commission or LAFCO, suggest under its first audit of the county’s water wholesaler. The Water Authority fell under LAFCO’s scrutiny a few years ago after two member water districts fought to leave the agency over its high water prices. 

So LAFCO decided to do what’s called a municipal service review of the Water Authority. That’s a fancy way of saying an audit with recommendations on how to fix certain problems. 

LAFCO came up with three possible solutions to the Water Authority’s dire financial straits. Here’s what they are: 

• Dissolve the Water Authority into smaller water wholesale regions.
• Dissolve it and form a new special district to manage water treatment and reservoir storage while giving the rest of the Water Authority’s assets to the Metropolitan Water District of Southern California. 
• Expand the Water Authority’s power by letting it absorb its 22-member water district’s role of selling water to cities and the county. 

Read more here. 

South County Report: What We Know About Coronado’s ‘Jet House’

Residents of the ritzy Coronado Cays community are up in arms over an unusual new home under construction that includes a 40-foot-long rooftop fuselage of a jet.

For his latest South County Report, our Jim Hinch was determined to get to the bottom of what’s happening there.

Among his findings: Neighbors are seeking a court injunction to stop what architectural renderings call “The Jet House.” That lawsuit identifies the owner as Abdulelah I. Albusseir, the apparent owner of a development company that submitted plans for the house.

Albusseir also may be connected with an artist who goes by the same name as the development company – Donatello Bonasera – and who designs solid-gold skulls and other fine art objects. An Architectural Digest advertorial featuring the development company compares its owner to Leonardo Da Vinci and says he is readying plans to build a residential community on Mars.

 Read the full South County Report here.

San Diego’s Air Is Super Polluted 

Our friends at KPBS read a report on the state of our air so you didn’t have to and found that San Diego County is among the most polluted regions in the country.  

“The 2026 State of the Air report ranked San Diego-Chula Vista-Carlsbad as the fifth-worst nationally for annual particle pollution,” writes KPBS’s Tammy Murga. “Last year, it landed in 59th place. The region also ranked as the seventh worst for ozone pollution.”

Why? Probably all of the cars. A lot of these pollutants dropped dramatically during the pandemic when workers stayed home, as we’ve reported. 

Read the full story on KPBS here.

Chicano Park Boulevard! 

The San Diego City Council voted this week to rename a street in Barrio Logan from Cesar E. Chavez Parkway to Chicano Park Boulevard in response to sexual abuse allegations against the late labor leader. 

Business owners and residents must now begin the process of updating their addresses on all legal and business documents. NBC 7 reports that the city is not helping residents pay for costs associated with that process. 

In Other News 

• The state Water Resources Control Board now has a plan to dole out nearly $50 million in state bonds for water quality projects meant to help long-running debacles near the border. (KPBS)
• A judge this week granted four anti-ICE protesters who barricaded themselves inside Mayor Todd Gloria’s office in January misdemeanor diversion that could lead to the dismissal of their cases. (NBC 7)
• The U.S. Navy Reserve inspector general ordered Congressional candidate Ammar Campa-Najjar to take corrective actions tied to his descriptions of his service as a reserve officer in his campaign. (KPBS)
• The National City Municipal Golf Course will live on for at least five more years. (Fox 5 San Diego)
• A proposed county-backed park in Alpine will undergo a second environmental review after a Superior Court judge ruled that an initial review and approvals be set aside. (KPBS)
• Update: A member of Encinitas’s city Urban Forestry Advisory Committee held onto his seat this week after concerns about his controversial Facebook post describing a video of African-style dance as “scenes of blacks dressed in tribal gear banging on drums.” (Union-Tribune)

The Morning Report was written by MacKenzie Elmer, Lisa Halverstadt and Andrea Sanchez-Villafaña. It was edited by Andrea Sanchez-Villafaña.

The post Morning Report: LAFCO: Dissolve the Water Authority? Not Yet. appeared first on Voice of San Diego.

On the latest episode, our hosts talk about your ballot and the city of San Diego’s budget trouble.

First up! San Diego County supervisors have officially taken the first step to put a measure on the ballot that would extend their term limits. But there are other county government reforms in that measure that are way more interesting.

Next, Mayor Todd Gloria released his proposed budget. Some folks are very mad, but we saw that coming. We explain the proposed cuts on the show.

Finally: You got to be delusional to run for governor of California. The podcast crew goes through a voter guide to explain your options, sort of.

Listen Here Now

Listen: Apple | Spotify | PodLink

The post VOSD Podcast: LivingForGod AndCountry appeared first on Voice of San Diego.

Right-wing operatives unleashed a firestorm inside the Capitol halls this week.

For weeks, a bill that would strengthen privacy protections for immigrant service workers stirred controversy online among some conservatives over fears that it would stifle First Amendment rights before it was taken up at a committee hearing this week.

Assembly Bill 2624 expands on a 25-year-old state protection program that allows victims of sexual assault and domestic abuse to keep their residential addresses confidential by providing a substitute mailing address to the secretary of state’s office. 

The legislation by Assemblymember Mia Bonta would broaden the eligibility to include people who provide legal, health or other social services to immigrants and ban their private information from being shared online if intended to incite harassment or violence if they are in the program. Violations would be a civil offense and give those affected the right to sue.

However, it has spurred anxiety among Republicans over concerns that it would stop independent ‘citizen journalists’ from investigating fraud accusations. The pushback has included calls from GOP lawmakers for a special session on the issue and ire from non-Californians such as Texas Sen. Ted Cruz and Trump administration officials.

Republicans have coined it the “Stop the Nick Shirley Act,” although the bill does not name the conservative activist and content creator whose videos about Somali-operated Minnesota day care centers spurred an immigration crackdown in Minneapolis. Shirley also visited several Somali-run day care centers in San Diego where he accused owners of running “ghost facilities” with no children present.

At a public safety hearing earlier this week, immigrants rights groups advocates filled the room and the testimony overwhelmingly supported the bill. It’s intended to protect workers who help immigrants from being targeted, but many advocates were rattled.

“I fear that people may come after me or my family because of my affiliation with this effort,” said Aydee Rodriguez, a fellow at the Women’s Foundation of California.

Assemblymember LaShae Sharp-Collins of La Mesa, who sits on the committee, said she supports the bill because “no one should fear walking out of their home.”

There was opposition, though. A self-described independent journalist echoed concerns it would curtail investigative journalism. Palmdale Assemblymember Tom Lackey, a Republican, said he couldn’t back the bill because of how it’s been interpreted by outsiders.

“It shows this bill is not clear,” he said about claims the bill would limit what journalists could share online. “Maybe it’s clear in your intent, but the application needs help if there’s this much attention being drawn and accusations that it represents something that you say it doesn’t claim.”

It passed the committee 7-2 along partisan lines.

Bonta’s office maintains that the bill language is clear and that the proposal would not affect journalists.

The fiasco is the latest flashpoint amid a nationwide Republican push to scrutinize Democrats over alleged widespread social services fraud. In California, the message has been politically potent ever since the state was found responsible for paying billions of dollars in fraudulent unemployment insurance claims during the Covid-19 pandemic.

“For voters that are fiscally motivated, they do believe the fraud exists, and they do want to stop it,” GOP political consultant Matt Rexroad said. “And so, for Republicans, who are pushing that effort, it’s a direct effort to not only appeal to their base, but independents love it and some Democrats believe that fraud exists on a large scale.”

It’s led to bills seemingly unrelated to fraud such as Bonta’s being pulled into a deliberately misleading political messaging ecosystem claiming corruption and First Amendment violations that she said have led her office to receive death threats.

Separately, another proposal First Amendment groups are worried about, Assembly Bill 1821, is snaking its way through the Legislature.

It would give public agencies more time to respond to public records requests, from the current 10 calendar days to 10 business days.

It advanced from committee last week after its author, Assemblymember Blanca Pacheco of Downey, removed a language that would have allowed agencies to charge the public unspecified amounts for time spent fulfilling requests.

Pacheco said that Downey and other cities have received an increasing number of requests over the past two decades that have cost the city hundreds of thousands of dollars in employee time.

“Regardless of the intent, requests at this scale require significant time and resources to process,” Pacheco said at committee hearing last week. City and county governments back the bill and groups such as the League of California Cities have said it will stop people from abusing requests, which can cause delays for other requests.

First Amendment and civil liberties groups initially worried that the proposed law would dissuade people from filing public records requests due to prohibitive costs.

David Loy, legal director of the First Amendment Coalition, said that dropping the fees was an improvement but the deadline extension could also result in delays, meaning some requests would never be completed.

“Time is of the essence,” Loy said. “Documents delayed are often documents denied.”

In Other News

Democrats advanced a bill that would disqualify federal immigration agents who started work during the second Trump administration from becoming local or state police officers. 

It’s the latest piece in a package of legislation taking swings at the Trump administration’s immigration crackdown, although attempts with similar laws have had limited success. A federal appeals court on Wednesday struck down a 2025 law that forced federal agents to identify themselves.

Other bills, such as the one that advanced this week and another that would make it easier to sue agents for civil offenses, are expected to face similar scrutiny should they become law.

What I’m Reading Now

Is San Diego on the right track with Mayor Todd Gloria’s proposed budget cuts? The San Diego Union-Tribune asks economists to give their take.

Black students at elite Southern California campuses navigate a rise in racist incidents, the Los Angeles Times reports.

The Trump administration and congressional Republicans hone in on hospice fraud in California during a special hearing on Medicaid fraud, from The New York Times.

The post Sacramento Report: A Privacy Protection Bill Unleashes an Online Flurry on the Right appeared first on Voice of San Diego.

“There’s no doubt that the Middle East crisis is a significant disruptor, especially for the property development industry,” ALI Chairman Jaime Augusto Zobel de Ayala said during the company’s annual stockholders’ meeting on Thursday. “In times like these, our top priority is stability over aggressive growth.”

He said the company is focused on preserving liquidity and maintaining flexibility.

“We’re focused on ensuring ample liquidity and maintaining the flexibility to act swiftly when the environment improves,” he said. “We have also scaled down our capital expenditure (capex) plans as part of our balance sheet management.”

ALI had planned P70 billion to P80 billion in capital expenditures this year, about 38% for leasing. In 2025, it spent P92.9 billion, with 38% for property development, 29% for leasing expansion, 18% for estate build-out, and 15% for land acquisition.

Mr. Zobel said the company is also adjusting its development pipeline, noting it will “manage our residential launches and reduce our inventory” while strengthening recurring income streams.

“The strategy we put in place is to pivot towards leasing through expanding our leasing footprint and reinventing our malls and hotels,” he said. “Our focus on building a stronger recurring income business is precisely to help us weather disruptions and cycles with more dependable revenue streams.”

The company also cited macroeconomic pressures, including “rising inflation, elevated interest rates, and a weaker peso,” as additional headwinds.

In its latest disclosures, ALI said property development accounted for about 65% of its real estate revenues in 2025, while leasing and hospitality contributed 28% and services 7%.

EARNINGS PERFORMANCE

ALI President and Chief Executive Officer Anna Ma. Margarita B. Dy said leasing is expected to drive growth over the medium term.

“Our leasing business is expected to remain on a growth trajectory and will be the primary driver of our company’s expansion,” she said.

She added that all new leasing projects over the next three years will be located within the company’s estates.

For 2025, ALI reported consolidated net income of P39.1 billion, up 38.7% from P28.2 billion in 2024, driven by leasing and hospitality and gains from portfolio management.

Leasing and hospitality revenues rose 7% to P48.7 billion from P45.6 billion. Shopping center revenues increased 5% to P24.2 billion from P23 billion, while office leasing revenues reached P12.2 billion. Hospitality revenues climbed 9.3% to P10.6 billion from P9.7 billion, boosted by the New World Makati Hotel acquisition.

“By 2027, we expect earnings before interest, taxes, depreciation, and amortization to be roughly balanced between leasing and development,” Ms. Dy said.

Mariana Zobel de Ayala, president of Ayala Malls and head of the leasing and hospitality group, said the company plans to expand its retail footprint.

“Looking ahead to 2026, we will open over 200,000 square meters of new retail space, our largest annual addition in history,” she said.

She added reinvestments in malls and hotels are expected to deliver a “15-20% uplift in rents and room rates upon stabilization.”

ALI is also expanding into industrial real estate, including cold storage facilities.

The company maintained a disciplined approach to its residential business, reporting sales of P125 billion in 2025 despite launching 42% fewer projects, while inventory improved to 19 months.

Chief Finance Officer Jose Eduardo A. Quimpo II said ALI continues to recycle capital, including through asset infusions into AREIT, Inc.

“We are not passively holding assets. We are constantly optimizing the balance sheet to catalyze returns and maximize value,” Mr. Quimpo said.

ALI returned 65% of its prior-year income to shareholders through dividends and share buybacks.

The company said its balance sheet remains strong, with net gearing at 0.78:1 supported by predominantly long-term fixed-rate debt.

“We have always deliberately kept our balance sheets strong so we can withstand periods like this, and just as importantly, position ourselves to capture opportunities when they emerge,” Mr. Zobel said.

At the local bourse on Thursday, ALI shares fell by 0.85% to P16.34 each. — Alexandria Grace C. Magno

The decision signals that retail prices of basic necessities are expected to remain stable in the near term despite elevated fuel costs.

“For now, there are no talks [for a price freeze],” Trade Secretary Ma. Cristina A. Roque told Money Talks with Cathy Yang on One News on Thursday. “Everybody’s cooperating. The manufacturers and retailers totally understand the situation.”

She said there is no need at this stage to invoke the Price Act, which allows government intervention in basic goods pricing during emergencies.

“There’s no need for that because in all our talks, there seems to be no problem. Everything goes very smoothly, so for now, there’s no need for that,” Ms. Roque said.

Under the law, prices of basic necessities are automatically frozen at prevailing levels for up to 60 days when a state of calamity or emergency is declared, unless the President decides otherwise. It also lets the President impose a price ceiling upon recommendation of the Price Coordinating Council.

Ms. Roque said the government does not expect price increases in basic goods until May 10, based on agreements with manufacturers and retailers. She added there have been no discussions on imposing price controls even after May 10.

Diesel prices have increased to P100.05 per liter since late February, while gasoline and kerosene have risen to P52.30 per liter and P82.40 per liter, respectively.

“We’re very much concerned with the prices of food, so we have to make sure that we monitor this very strictly,” Ms. Roque said. “We will also enforce [price stabilization measures] when the need arises.”

The DTI continues to meet manufacturers and retailers weekly to ensure compliance with suggested retail prices for basic necessities and prime commodities. Only a portion of product lines are covered by regulation even among large manufacturers with diversified portfolios.

The agency monitors more than 726 variants of essential goods, 196 of which are subject to suggested retail prices. These include canned sardines, processed meats, milk products, soy sauce, fish sauce, vinegar, instant noodles, bread, detergent, bottled water and other staples.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said companies’ temporary cost absorption might not last if oil prices remain elevated.

“If elevated oil prices persist, price adjustments could follow shortly, especially for goods with high logistics and energy costs,” he said in a Viber message.

He said sustained increases in transport and input costs would eventually pressure margins and trigger repricing.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said future inventories might already reflect higher input costs.

“New stocks could already reflect higher prices of inputs and passed-through effects due to higher fuel, transport and shipping costs,” he said in a Viber message.

The DTI is also encouraging long-term adjustment through electric vehicle (EV) adoption as transport operators face higher fuel costs.

“It’s good for them (drivers) to at least explore the possibility of shifting now from the regular vehicles to the EV,” Ms. Roque said.

The agency, through Small Business Corp., recently launched a P2-billion E-Transport Loan program to support electric vehicle adoption, offering loans of up to five years with a six- to 12-month grace period.

EVs accounted for 11% of total vehicle sales in the Philippines as of end-March, according to industry data. — Beatriz Marie D. Cruz

THE Philippines is set to be added to JPMorgan Chase & Co.’s local currency emerging market debt index from Jan. 29 next year, a move that is expected to lift foreign participation in local bond issuances and improve pricing conditions for government borrowing.

The inclusion will cover Philippine peso-denominated government bonds, which will enter the widely tracked Government Bond Index-Emerging Markets (GBI-EM).

Finance Secretary Frederick D. Go said the inclusion signals investor confidence in the country’s fundamentals and fiscal management.

“It reflects a strong vote of confidence in our solid fundamentals and fiscal discipline,” he said in a Viber message. “This milestone will broaden our investor base, improve market liquidity and help lower borrowing costs.”

JPMorgan’s GBI-EM tracks sovereign and quasi-sovereign bonds issued by emerging markets. Philippine global peso notes were removed from the index in January 2024 due to illiquidity concerns.

Eligible securities include Philippine peso-denominated government bonds issued from 2023 with maturities of up to 20 years.

The Philippines was placed on “Index Watch Positive” seven months before the announcement.

A joint statement from the Department of Finance, Bureau of the Treasury and Bangko Sentral ng Pilipinas (BSP) said the decision reflects reforms aimed at deepening bond market liquidity, expanding the interest rate swap market, strengthening the repo market and simplifying tax treaty application rules.

BSP Governor Eli M. Remolona, Jr. said the development strengthens capital market depth and monetary policy transmission.

“This is a major step in deepening the Philippine capital markets, with significant benefits to the government, to domestic and global investors and to local banks and businesses,” he said. “As bonds gain more liquidity, this will help the BSP transmit monetary policy, benefiting borrowers and investors across the economy.”

The agencies said they would continue coordinating with regulators and market participants to align domestic trading and pricing practices with global standards.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the inclusion boosts the country’s credibility in global debt markets and supports sustained foreign inflows.

“The Philippines’ inclusion in the JPMorgan Government Bond Index is a major credibility upgrade,” he said in a Viber message. “It effectively puts Philippine bonds on the ‘must-own’ list for global investors, driving steady, long-term foreign inflows rather than hot money.”

“That broader investor base should gradually lower borrowing costs by compressing risk premiums and improving bond market liquidity,” he added.

He said disciplined fiscal and inflation management would be key to sustaining the benefits of the index inclusion.

Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said the move might improve demand and pricing for offshore issuances and support government funding plans.

“We can also expect increased foreign participation in onshore bonds, as index inclusion typically attracts passive and benchmark-driven investors,” he said via Viber.

The government raised $2.75 billion in January through a triple-tranche dollar bond issuance, consisting of $1.5 billion in 10-year bonds at 5%, $750 million in 25-year bonds at 5.75% and 5.5-year notes at 4.25%.

About $2.5 billion remains in its foreign borrowing program, with a possible issuance as early as the second quarter, according to the Treasury bureau.

THE National Government’s fiscal gap widened in March as spending growth outpaced revenue gains, even as the first quarter still ended with a narrower deficit due to stronger cumulative collections.

In a statement on Thursday, the Bureau of the Treasury said the budget deficit in March rose 2% to P349.7 billion from a year earlier, driven by faster growth in government expenditures relative to revenues.

“This outturn reflects a higher year-on-year increase in expenditures of P32.6 billion, which outpaced the P25.8 billion rise in revenues,” the Treasury said.

Government revenues for the month increased 9.3% to P305.1 billion, supported by both tax and nontax sources, while expenditures climbed 5.2% to P654.8 billion.

Spending was lifted by higher transfers to local government units, including their share in national taxes and special allocations, as well as increased support to government-owned and -controlled corporations (GOCCs).

The government also released P20 billion to the Department of Energy for its emergency energy program to help shore up fuel supply amid external supply risks linked to the war in the Middle East.

Despite the March increase, the fiscal position for the first quarter was stronger than last year as revenue growth outpaced spending over the period.

The Bureau of Internal Revenue collected P719.2 billion in January to March, up 4.2% from a year earlier, supported by improved tax administration and digital systems aimed at reducing leakages.

The Bureau of Customs generated P239.4 billion, 3.5% higher year on year, backed by enforcement reforms under its Integrity, Accountability and Modernization program.

Total revenues for the first quarter rose 13.7% to P1.14 trillion, driven in part by higher nontax income, which more than doubled to P166.1 billion on early dividend remittances from GOCCs.

Tax revenues accounted for 85.4% of total collections at P969.2 billion.

Cumulative expenditures reached P1.49 trillion as of end-March, up 3.2% from a year earlier.

Primary expenditures rose 1.2% to P1.22 trillion, while interest payments increased 13.3% to P273.1 billion, reflecting higher debt servicing costs.

The primary deficit narrowed 59.8% to P82.4 billion in the first quarter from a year earlier.

“March expenditures increased mainly due to higher transfers to local government units, additional budgetary support to GOCCs, and a one-off release to support fuel supply amid geopolitical risks,” Union Bank of the Philippines Chief Economist Ruben Carlo O. Asuncion said in a Viber message.

“While revenues posted solid growth in March, it was not enough to fully offset the pickup in disbursements, resulting in a marginally wider monthly deficit,” he added.

FUEL SUBSIDIES

Rising oil prices and tighter fuel supply have prompted the government to declare a national energy emergency, rolling out subsidies, fuel discounts and temporary tax relief on kerosene and liquefied petroleum gas.

China Banking Corp. Chief Economist Domini S. Velasquez said the March increase reflects the rollout of subsidies to cushion sectors affected by the oil shock.

“As support measures expand, the fiscal deficit is expected to widen in the near term,” she said via Viber.

She added that infrastructure disbursements remain a positive development due to their multiplier effects on growth.

“The composition of spending will ultimately depend on the duration of the conflict: a prolonged war would skew expenditures toward current subsidies and social support, while an early resolution would provide the government with more fiscal space to ramp up infrastructure,” Ms. Velasquez said.

Mr. Asuncion said oil price mitigation measures, including subsidies and tax exemptions, might place some upward pressure on the fiscal deficit.

“Part of this has already been reflected in March disbursements linked to energy-related support programs,” he said. “That said, these interventions are designed to be temporary and well-targeted, rather than a permanent expansion of government spending.”

He said stronger revenue performance, supported by improved tax administration and higher nontax inflows, would help create fiscal space to absorb short-term pressures.

“The sharp improvement in the primary balance in the first quarter also points to better underlying fiscal health,” Mr. Asuncion said.

“Overall, while the deficit could widen modestly in the coming months, any impact from oil-price mitigation measures is expected to be manageable and consistent with the government’s full-year fiscal objectives,” he added.

THE PHILIPPINE central bank increased its benchmark interest rate for the first time in more than two years, while signaling that more “small” interest rate hikes could follow to safeguard spiraling prices due to the Iran war.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) raised the target reverse repurchase rate by 25 basis points (bps) to 4.5% at its policy meeting on Thursday, effectively ending an easing cycle that cut the benchmark rate by 225 bps starting in August 2024.

The central bank also adjusted the interest rates on its overnight deposit and lending facilities to 4% and 5%, respectively.

“Once we start raising the policy rate, we’re likely to raise it again,” BSP Governor Eli M. Remolona, Jr. told a news briefing after the policy decision. “That’s a better strategy than raising it just one time and making a big hike instead of a small one.”

He noted that monetary policy involves “several steps” to “minimize disruptions to the economy.”

The decision was in line with the expectations of 11 of 19 analysts in a BusinessWorld poll last week.

It followed an off-cycle meeting last month where the BSP held rates steady as it sought to calm markets amid growing uncertainties.

Mr. Remolona said the central bank raised borrowing costs to keep inflation expectations anchored and contain the buildup of spillover effects.

“Inflation expectations are rising further, increasing the risk that they will de-anchor from our target,” he said. “This can cause inflation to become persistent, hurting households as well as businesses.”

The BSP raised the policy rate based on a scenario that oil futures would remain high in the near term, with spot prices close to $100 a barrel, before gradually declining at the end of the year and further into 2027.

Mr. Remolona said supply shocks have already affected the prices of certain items in the consumer price index.

“For now, yes, it’s mainly a global supply shock,” he said. “But we’re beginning to see spillover effects into other items in the consumer basket. And the prices of those other items are affected by domestic demand.”

In March, headline inflation rose to an almost two-year high of 4.1%, faster than the BSP’s 3.1%-3.9% forecast and 2%-4% target for the year.

The decision to raise interest rates was not unanimous, Mr. Remolona said, adding that the BSP had considered a 50-bp rate increase but decided against it to avoid any large moves.

Clearer evidence of a sharp and prolonged oil price shock de-anchoring inflation expectations would warrant a bigger hike, he added.

The central bank now expects inflation to average 6.3% this year and 4.3% next year, both above its 4% ceiling, before returning to its tolerance range in 2028.

“It will remain above 5% for most of this year,” BSP Deputy Governor Zeno Ronald R. Abenoja told the same briefing. “We don’t think it will de-anchor, but if it’s possible it will de-anchor, then we would have to change our strategy.”

‘TOLERANCE RANGE’

Mr. Remolona said the BSP would have to increase borrowing costs gradually to avoid slowing economic growth.

“The idea is not to bring it back to within the tolerance range right away,” he said. “Because if we try to do that, then it’s very costly for the economy. What we want is to bring it down to within the tolerance range within a reasonable period without hurting the economy too much.”

In a separate statement, the central bank said the inflation outlook has worsened due to the war in the Middle East, which has driven up global oil and fertilizer prices.

These increases have begun feeding into domestic fuel and food costs, adding pressure on consumer prices.

At the same time, core inflation, which excludes volatile food and energy items, has continued to rise, indicating broader underlying price pressures across the economy.

The BSP said its latest projections show a higher inflation trajectory, with average headline inflation expected to exceed the 4% ceiling of its target range in both 2026 and 2027.

Inflation expectations have also increased, raising the risk that price pressures could become more entrenched if left unchecked.

“After considering its options, the Monetary Board deemed it necessary to take timely and preemptive policy action to safeguard price stability,” the central bank said.

The BSP said the rate increase aims to anchor inflation expectations and prevent second-round effects, such as higher transport fares and wages, from further fueling price increases.

“A measured increase in the policy rate will still accommodate economic recovery over the medium term,” it added.

The BSP reiterated that future policy decisions would be guided by incoming data, particularly developments in inflation and global conditions.

It added that it stands ready to take further monetary action as needed to bring inflation back to its 3% target, consistent with its mandate of maintaining price stability.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas in a Viber message said the BSP’s tightening move would support market sentiment and the peso.

Some analysts said the increase could be a “one-and-done” rate hike, citing growth risks, easing global crude oil price volatility and a ceasefire between the US and Iran.

“Risks are tilted towards further hikes if inflation expectations show strong signs of de-anchoring,” Oxford Economics Assistant Economist Jun Hao Ng said in a note.

Pantheon Macroeconomics Chief Emerging Asia Economist Miguel Chanco said the medium-term outlook for global oil prices has softened, while local pump prices have also rolled back.

“The Board’s next move is likely to be a rate cut at some point this time next year, when this external price shock starts to drop out of the year-on-year inflation picture,” he added. — with Norman P. Aquino

Recently, we’ve written about three transparency issues in county government. 

Supervisors have held secret subcommittee meetings behind closed doors; Board Chair Terra Lawson-Remer spent $89,000 in county funds to poll-test potential ballot measures; and we sued the county because it has delayed, and refused, the release of public records. 

On Wednesday, County Supervisor Joel Anderson pushed forward policies to try to usher in more transparency on all of the above – and his fellow board members unanimously approved them.

Our Lisa Halverstadt has a rundown of the proposals. They would make secret committees public, create guardrails and other requirements for county-funded polling and standardize part of the county’s response to public records requests. 

Next steps: All three policy pitches require work and reports back from county staff before they are enacted. We’ll be watching to see what happens next.

Read the full story here.

North County Report: Ex-Fair Leader’s Checkered Past

Earlier this week, our Tigist Layne unearthed a new lawsuit that may be connected to the sudden ouster of former Del Mar Fairgrounds CEO Carlene Moore. The Fairgrounds’ board of directors abruptly fired Moore on April 14.

Turns out, the problems leading to Moore’s firing were just the latest in what Layne reveals were years of troubled leadership both at Del Mar and in Napa County, where Moore led the fairgrounds for nine years before coming to San Diego.

A 2017 citizens’ Grand Jury report found the Napa Fairgrounds had declined markedly under Moore’s leadership. Facilities had deteriorated and the fairgrounds faced a structural budget deficit and declining attendance.

The Napa fairgrounds to shut down completely in 2020, soon after Moore left. 

“This is a hard job here, you’re running a big business,” one Napa Valley resident previously said of Moore’s fairgrounds leadership there. “She can’t do it.” 

Read the full North County Report here. 

In Coronado, a Rooftop Jet Showdown

Call it the granddaddy of all HOA disputes.

A group of Coronado Cays property owners filed suit to halt construction of a home that features an unusual design touch: the fuselage of a 40-foot Gulfstream 550 jet on the roof.

The suit contends the Coronado Cays Homeowners Association failed to follow its own rules when it approved plans for the house. The jet, says the suit, “will create the unmistakable and grotesque appearance of a plane crash site atop a private residence.”

Some residents have even created a website to the fight the plan. “A 40-foot jet fuselage has no place on a residential roof,” it reads. 

Carlos Cortez, a neighbor of what construction plans call “The Jet House,” said residents in the neighborhood of multi-million-dollar custom-built homes plan to speak out at an HOA meeting today. Cortez said residents fear drones and selfie-seekers will swarm their neighborhood.

“If this is allowed to happen, what’s to stop someone from putting an Artemis II rocket on the roof?” he said.

In Other News 

• Correction: Yesterday’s Morning Report contained an error related to the city’s Climate Equity Fund. The mayor’s budget proposal would redirect millions of dollars away from the Climate Equity Fund and into the city’s general fund. It would not raid money already in the fund. 

• State water officials on Tuesday approved rules guiding distribution of up to $50 million in bond funds to clean up the Tijuana and New rivers in San Diego and Imperial counties. State officials said they expect to begin reviewing applications for cleanup projects later this year. (KPBS)

• City councilmembers on Wednesday endorsed a possible November ballot measure that would levy a tax on corporations that own and rent out more than 10 single-family homes. Councilmembers said they hoped the measure would free up houses for individual homeownership. (Union-Tribune)

• The Encinitas City Council on Wednesday was set to consider removing a member of the city’s Urban Forestry Advisory Committee in response to a social media post by the committee member. The committee member, Steven Houbeck, posted a message in February describing a video of African-style dance as “scenes of blacks dressed in tribal gear banging on drums.” (inewsource)

• Former San Diego County Department of Animal Services Director Rachael Borrelli filed an $8.5 million claim against the county alleging her ouster from the animal services department last year was an act of retaliation for complaining about what Borrelli said were a colleague’s repeated defamatory remarks about her. (KPBS)

• Times of San Diego has all you need to know about this Saturday’s San Diego Book Crawl – the “Super Bowl of Books.”

The Morning Report was written by Lisa Halverstadt and Jim Hinch. It was edited by Will Huntsberry.

The post Morning Report: About Those Secret Subcommittees appeared first on Voice of San Diego.

Residents of Coronado Cays, a waterfront enclave adjacent to Coronado’s Silver Strand shoreline, are accustomed to their houses generating headlines. 

An 11,715-square-foot dockside mansion in the community drew television coverage last year when it hit the market for $37.5 million. 

But residents say they were unprepared for a recent construction project that stands out even by today’s standards of ultra-wealthy conspicuous consumption. 

At 15 Sandpiper Strand in the Cays’ Green Turtle neighborhood, crews are erecting what a developer describes as a “fully serviced estate” that features a Bugatti Chiron automobile in the living room, two “presidential-style” suites, a 100-foot dock big enough for two yachts – and the 40-foot-long fuselage of a Gulfstream G 550 jet on the roof. 

It’s the rooftop jet that’s causing a problem. 

Earlier this month, a group of neighbors sued the property owner and the Coronado Cays Homeowners Association, demanding an injunction blocking installation of the jet. 

“An actual airplane fuselage is not in harmony with the neighborhood,” the suit contends. “In fact, unless a catastrophic disaster has occurred, one will not find airplane parts on the roofs of any of the homes in the Coronado Cays. That is because the Coronado Cays is an exclusive waterfront community, not a community of airplane hangars.” 

Neighbor Carlos Cortez, who is not involved in the lawsuit, said nearby residents fear the jet will lower their property values and attract drones, selfie-seekers and other gawkers. 

“There’s no precedent in all of San Diego County for someone having a jet on the roof,” he said. “If this is allowed to happen, what’s to stop someone from putting an Artemis II rocket on the roof?”

In response to emailed questions about the proposed jet, the developer of the $30 million house said the jet was part of a “unified architectural concept” intended to showcase the house’s “individuality and artistic expression.”

The developer, who declined to give a personal name, only the name of the development company working on the house, said it was too late for objections.

“With approvals granted over three years ago by both the [homeowners association] and the city of Coronado, and with construction now three to four months from completion, we are confident that these established facts outweigh speculative or opinion-based concerns,” the developer said.

The developer, whose company is called Donatello Bonasera, disagreed that the jet would lower property values or draw unwanted attention.

“Significant investment and high-quality custom development typically enhance surrounding property values rather than diminish them,” the developer said.

The developer declined to comment on the lawsuit.

The controversy , which Cortez said likely would be the subject of heated commentary at a scheduled homeowners association meeting today, highlights Coronado’s unique place in the wider economy and culture of South San Diego County.

The Cays, where three-bedroom homes sell for close to $5 million, sits directly across San Diego Bay from some of San Diego County’s lowest income communities. 

State Assembly District 80, which encompasses much of South County (excluding Coronado), is home to one of California’s highest percentages of residents who qualify for federal health, nutrition and other aid programs. Forty-five percent of district residents qualify for such programs, according to a recent U.C. Berkeley report. 

In District 77, a coastal strip of land including Coronado, just 16 percent of residents qualify for federal aid. 

The Cays, a community of 1,200 luxury condominiums, townhomes and custom-built single-family homes, is visible across San Diego Bay from most South County cities. Many properties feature their own boat slips. 

“With the sun glistening across each water inlet and your boat in your own backyard, the magic of the water is yours to see, touch and sit on,” the community’s website says. 

Owners range from locals who have lived in the area for most of their lives to international jetsetters who visit their Coronado Cays property a few times a year. 

Cortez said the owner of 15 Sandpiper Strand initially kept a low profile after buying the property a few years ago. More recently, rumors about his identity have flown around the neighborhood, fueled in part by what Cortez said were frequent sightings of Ferraris, Bentleys, Rolls-Royces and other luxury cars outside the property. 

The lawsuit, filed April 10 in San Diego Superior Court, identifies the owner as Abdulelah I. Albusseir, who is also listed in state business filings as the manager of the Donatello Bonasera development company that submitted architectural plans for the house with the jet. 

The plans, which identify the house as “Casa Faten: The Jet House,” show the nose of the Gulfstream fuselage poking slightly over a roughly 2.5-foot-tall glass parapet encircling the roof. Following initial objections from neighbors last year, the developer added to the plans an eight-foot solid wall shielding the jet from some neighbors’ view. 

Renderings provided by the developer show a glass-walled mansion with a sleek modernistic interior and what appears to be a roughly 130-square-foot image of a fake $1 million bill imprinted on the roof beside the jet fuselage. A glass geodesic dome encompasses a jacuzzi on the other side of the roof.

Donatello Bonasera advertises itself on its website as a builder of skyscrapers, “high-end luxury residences” and “bespoke bunkers.” 

An artist who also goes by the name Donatello Bonasera – and who discussed the Jet House with Voice following an email inquiry posted to his website – describes himself as a craftsman of fine gold artworks, “a creator whose work is both timeless and transcendent.” 

The artist’s website features works such as a solid gold skull with a rose clenched in its jaws. 

The Donatello Bonasera representative who replied to Voice of San Diego’s email declined to confirm whether Donatello Bonasera the artist is the same as the Jet House developer — or if either of those people are Abdulelah Albusseir.

“Some of your questions relate to private ownership and personal matters that are outside the scope of the development team’s role and knowledge,” the representative’s email says.

An undated advertorial published on the website of Architectural Digest magazine suggests that Donatello Bonasera — whoever he is — is a man of many talents.

The advertorial describes Mr. Bonasera as an “Artist, Builder & Icon” who has inspired comparisons to Leonardo Da Vinci and now is setting his sights on building a new residential community – on Mars. 

“This isn’t science fiction,” the advertorial says of the developer’s interplanetary ambitions. 

For now, the advertorial says, Donatello Bonasera is focused on jet-themed buildings. The advertorial includes a rendering of another house Donatello Bonasera built that also features a jet on the roof. 

“The result is architecture with the presence of flight itself, balanced between earth and sky,” the advertorial says. 

One outstanding rumor remains impossible to verify. Cortez said some neighbors believe Albusseir is a Sheikh from somewhere in the Middle East. 

Several online business publications of uncertain origin refer to a “Sheikh Abdulelah Al Busseir” as “a real estate and investment magnate who has amassed incredible wealth while keeping a modest profile.” 

One publication identifies the sheikh as “The Phantom Billionaire.” 

Phantom or not, Cortez said neighbors simply want the jet to go away. 

“It’s not about whether it’s tasteful or fancy or nice,” he said. “It’s the precedent.” 

In Other News 

The Chula Vista City Council on Tuesday approved spending up to $398,000 for a comprehensive review of police department facilities that will help determine whether the department needs to build a new eastside substation. City Councilmember Michael Inzunza, who represents part of eastern Chula Vista, said residents identified public safety and slow police response times as top concerns during door-to-door canvasing for the 2024 City Council election. 

Also on Tuesday, the National City Council approved a beefed-up five-year extension of the city’s agreement with the American Golf Corporation for management of the city’s Las Palmas Municipal Golf Course. Residents packed the meeting, fearing the city planned to close the golf course, based on inaccurate information circulating on social media. A crowd at the meeting applauded councilmembers’ unanimous vote to extend the agreement.  

The National City Council also began its budget process for the upcoming fiscal year. A preliminary presentation from city finance officials said the city’s current $9 million deficit will nearly double to more than $16 million absent changes in spending or revenue. 

The post South County Report: Rooftop Jet Roils Coronado Yacht Community appeared first on Voice of San Diego.

THE PHILIPPINE Stock Exchange (PSE) is proposing to cut the minimum public offer size for preferred shares to P100 million from P1 billion, as it tries to open the capital market to smaller firms and boost participation.

In a consultation paper dated April 21, the exchange said the proposed changes to its listing rules are meant to “democratize access to the stock market,” particularly for small and medium enterprises (SME) that may not have the scale to meet strict requirements.

“This is double the offering limit under the rules and regulations governing crowdfunding, a platform often tapped by SMEs,” the PSE said.

It is also comparable to the minimum offer size required of small-cap companies applying for an initial public offering (IPO).

To complement the lower offer size, the PSE is also proposing to reduce the minimum number of shareholders required upon listing to 100 from 1,000. The move will ensure that subscription levels remain workable for smaller offerings.

The exchange is likewise seeking to align its public float requirements with Securities and Exchange Commission guidelines, setting the minimum float at 15% to 20% depending on market capitalization. In certain cases, a lower float may be allowed, though not below 12%.

Market analysts said the proposal could significantly expand access to capital for SMEs while introducing new dynamics in pricing and investor behavior.

John Tristan D. Reyes, president of BDO Securities Corp., said the lower threshold would make it easier for smaller companies to raise funds without relying heavily on bank loans or diluting ownership.

“The current P1-billion requirement is too high for many SMEs, so this change helps them transition more easily from private funding to the public market,” he said in a Viber message, noting that broader access to financing could support business expansion and job creation.

But investors might demand higher returns, particularly from smaller or less-established issuers, underscoring the need for strong governance and clear dividend structures, he pointed out.

Marky Carunungan, an analyst at F. Yap Securities, noted that while the move lowers barriers to entry, it does not guarantee a surge in issuance since preferred shares remain credit-driven instruments.

“The change should broaden the issuer base but also introduce wider dispersion in credit quality,” he said, adding that this could lead to greater investor selectivity and more varied pricing.

Under the proposal, the PSE plans to streamline disclosure requirements for issuers listing only preferred shares.

Reporting will focus on events that directly affect an issuer’s ability to pay dividends, while nonmaterial disclosures such as changes in directors or business address will no longer require immediate reporting.

The number of reportable disclosure items is set to be reduced to 29 from 42, while some requirements will be removed or applied on a limited basis.

The exchange is also proposing adjustments to its penalty framework, including simplified fines for disclosure violations and specific sanctions for breaches involving dividend payments and shareholder rights.

The PSE is accepting comments on the proposed changes until May 5, 2026, as it seeks feedback from market participants before finalizing the revised rules.

“Given the overwhelming need to respond to this oil crisis, we have to strike the right balance of providing urgent relief to Filipino families without sacrificing our ability to spend on growth-enhancing programs like education and health,” former Finance Secretary Margarito “Gary” B. Teves said in a Viber message on Wednesday.

“The government has to convincingly break away from its narrow-minded stance of ‘fiscal consolidation’ and pursue countercyclical spending supported by progressive revenue measures,” Jose Enrique “Sonny” A. Africa, executive director of IBON Foundation, said in a separate Viber message.

On Monday, Fitch affirmed the country’s long-term foreign-currency issuer default rating at “BBB” but downgraded its outlook from “stable,” citing disruptions to public investment and exposure to the global energy shock.

“The outlook revision reflects rising risks to the Philippines’ strong medium-term growth prospects from recent disruptions to public investment, exacerbated in the near term by elevated exposure to the ongoing global energy shock,” Fitch said in a commentary.

“These challenges could narrow the country’s GDP (gross domestic product) growth outperformance relative to peers, amid higher post-pandemic government debt and a gradual and sustained deterioration in its external finance position,” it added.

The country is under a one-year state of national energy emergency amid soaring oil prices and dwindling fuel reserves.

Mr. Teves said the Marcos administration needs to improve governance mechanisms through reforms in the budget process.

“These include empowering regional development councils to ensure alignment between regional and national development plans,” he said. 

He added that the government should increase civil society participation “not only in the drafting of the President’s National Expenditure Program but also in exercising oversight in budget implementation.”

The Philippines faced a corruption scandal last year that linked government officials, lawmakers, and contractors to anomalous flood control projects, which slowed public spending and dampened investor and consumer confidence.

Mr. Teves said funds such as the contingent fund, quick response fund, and confidential funds under the 2026 General Appropriations Act could be rechanneled for oil crisis mitigation.

The government has started rolling out subsidies to sectors most affected by higher fuel prices, including transport and agriculture, as well as a P10-per-liter fuel discount.

Mr. Africa warned that a potential downgrade could reinforce what he described as the government’s tendency toward fiscal consolidation.

“The quality and equity of the government’s fiscal stance have to be improved, not shrunk to appease credit ratings agencies,” he said.

Mr. Africa said focusing too narrowly on deficit and debt targets could worsen the impact of rising prices on households.

“If the government is locked into trying to mechanically hit deficit or debt targets just to satisfy credit ratings agencies, it will only worsen the livelihood and purchasing power crises of millions of Filipino families,” he said.

“On the contrary, countercyclically expanding public spending for social relief and energy investments will not just be stabilizing but also enhance growth,” he added.

He said such spending would anchor growth in domestic demand and help prevent a downgrade from triggering austerity.

Mr. Africa also called for expanded subsidies for transport workers, farmers, fisherfolk, and low-income households to cushion the oil shock’s second-round effects.

“Unfortunately, the government is not undertaking any new and additional spending commensurate with the oil shocks and is just repackaging various aid programs for the year that would have been spent anyway,” he said.

He added that the government should improve revenue collection through more progressive taxation.

“Instead of relying on regressive consumption taxes like value-added taxes and excise taxes, there can and should be stronger taxation of the highest-income groups with a billionaire wealth tax, windfall profits tax, and luxury taxes — this can generate some P500-600 billion or more,” he said.

“The revenue-losing income tax cuts on rich families and large corporations can also be reversed to recover some P200-300 billion in foregone revenues,” he added. — Justine Irish D. Tabile

The standard operating procedures (SOP), signed at a ceremony in Malacañang on Wednesday, consolidate enforcement under Executive Order No. 74, issued in 2024, and Republic Act No. 12312, also known as the POGO Ban Act, and integrate multiple laws and agency rules into a single framework.

The SOPs establish a coordinated process covering intelligence gathering, enforcement operations, evidence handling, prosecution, and asset preservation in cases involving illegal Philippine offshore gaming operators (POGOs) and related activities, Malacañang said in a statement.

Executive Secretary Ralph G. Recto said the procedures are meant to strengthen coordination and enforcement, describing them as “another vital step” in the government’s campaign against illegal offshore gaming operations.

“These SOPs were not drawn from thin air. They were borne of hard-earned lessons from the field,” he said in a speech during the signing ceremony, adding that they establish “end-to-end procedures” and equip the government with stronger legal tools.

He said authorities are seeking to address the adaptability of illegal operations, noting that such groups are “capable of reappearing under new names, new fronts, and new methods each time they are struck.”

The Presidential Anti-Organized Crime Commission will serve as the lead coordinating body under the framework, while the Department of Justice will deploy prosecutors early in case buildup to strengthen evidence and improve conviction rates.

Other agencies involved include the Anti-Money Laundering Council and the Securities and Exchange Commission, which will handle financial tracking and corporate intelligence.

The SOPs also cover the management and maintenance of assets seized from illegal operations.

Mr. Recto said the approach goes beyond closing down operations, shifting toward “preserving assets, seizing illicit resources, securing convictions, protecting victims, and cutting these criminal enterprises off from the financial and corporate networks that sustain them.”

Offshore gaming companies expanded in the Philippines starting in 2016, catering largely to foreign clients and contributing to government revenues and demand for office space and services.

Authorities, however, have linked segments of the industry to crimes such as human trafficking, money laundering, and cyber-related offenses, prompting tighter regulation and enforcement actions in recent years.

President Ferdinand R. Marcos, Jr. announced a ban on POGOs in his 2024 State of the Nation Address, citing the social costs associated with the industry.

Mr. Recto said the policy was driven by concerns that revenues could not outweigh its impact, saying it was “a decision rooted not in convenience, but in conscience; not in expediency, but in duty.”

The shutdown of offshore gaming operations displaced thousands of workers. Estimates ranged from 23,000 to 42,000 Filipino employees, according to the Philippine Amusement and Gaming Corp., while the Department of Labor and Employment identified about 30,567 affected workers as of November 2024.

“Public distrust of POGOs and concerns over illicit activities justified dismantling the sector,” Hansley A. Juliano, a political science lecturer at the Ateneo de Manila University, said via Messenger, adding that doubts persisted over whether revenues from the industry benefited the broader public.

He said any fiscal gains appeared limited, with “more tangible improvements seen in reduced housing pressure and urban congestion,” while broader indicators such as tax compliance and investor confidence remain tied to larger economic forces.

“Tax compliance, investor confidence and externalities, while nominally related, cater to bigger macroeconomic trends and investment areas beyond those previously occupied by POGOs,” he added.

Mr. Juliano said sustaining the policy direction would depend on institutional safeguards and consistent enforcement, noting the need for “stronger irreversible checks” to prevent policy reversals. — Chloe Mari A. Hufana

THE CIVIL Aeronautics Board (CAB) raised the passenger fuel surcharge to Level 19 for April 16-30, the highest since 2022 and just below the maximum allowable rate, increasing fares for flights booked during the period.

The rate follows the Level 8 surcharge imposed for April 1-15, based on an April 13 advisory released on Wednesday, with the increase more than doubling earlier rates.

At this level, fuel surcharges range from P627 to P1,834 for domestic flights and from P2,070.77 to P15,397.15 for international flights, depending on distance.

Indicative rates show that passengers may pay an additional P2,071 for flights between Manila and Taiwan, Hong Kong, Vietnam, Cambodia, and Brunei. Surcharges rise to about P3,221.34 for routes to Indonesia, Japan, South Korea, and India and can reach as much as P14,663.96 for flights to North America, the United Kingdom, and the Netherlands.

Fuel surcharges are variable fees added to base fares to offset changes in jet fuel costs and are adjusted based on movements in jet fuel prices using the Mean of Platts Singapore benchmark.

According to the International Air Transport Association (IATA), jet fuel prices fell 6.7% week on week to $184.63 per barrel as of April 17 but surged 105.1% year on year.

The Level 19 fuel surcharge, just below the maximum Level 20, is the highest in four years, based on CAB data.

Starting in April, the CAB shifted from a monthly review of fuel surcharges to a 15-day monitoring cycle to respond more quickly to fuel price movements following the war in the Middle East.

“This interim measure shall be in effect until the current situation stabilizes, or as may be revised or revoked accordingly,” CAB Executive Director Carmelo L. Arcilla said.

For airlines collecting surcharges in foreign currency, the equivalent rate is P59.95 to the dollar, the CAB said.

Local airlines earlier assured sufficient jet fuel supply following concerns about possible aircraft grounding due to supply constraints.

For low-cost carrier AirAsia Philippines, geopolitical uncertainty has pushed operating costs beyond initial forecasts, as jet fuel prices more than doubled from last year’s levels.

“While rising fuel costs continue to impact airline business models built on affordable fares, we continue to find ways to keep travel as accessible as possible without compromising the safety and reliability of our flights,” the airline said in a statement.

Data from the Department of Energy showed that the country’s jet fuel supply could last up to 61 days as of April 17.

Transportation Acting Secretary Giovanni Z. Lopez said the fuel surcharge could reach Level 20, given the current trajectory of prices.

‘VERY CONCERNING’
“Level 19 is already next to the highest level, which is Level 20, and that is already very concerning. Yet the tensions in the Middle East have not yet abated, so it’s very much possible we could reach that,” said Nigel Paul C. Villarete, a senior adviser on public-private partnership at Libra Konsult, Inc., and former chief executive officer of the Mactan-Cebu International Airport Authority.

“In the meantime, it may also make people spend less on travel, although we do want them to spend more, especially foreign visitors, because tourism is a major economic driver in our country,” he said.

“A high surcharge means high fear of possible supply constraints… So high surcharge is meant to kill or discourage some demand for air travel. The leisure travel will be canceled temporarily, and only necessary and business travels will proceed via high fare surcharge,” Bienvenido S. Oplas, Jr., president of Minimal Government Thinkers, said in a Viber message.

IATA warned that flight cancellations could emerge in some regions due to jet fuel shortages, citing the International Energy Agency (IEA).

“This is already happening in parts of Asia. Along with doing everything possible to secure alternative supply lines, it’s important that authorities have well-communicated and well-coordinated plans in place in case rationing becomes necessary, including for slot relief,” IATA Director-General William M. Walsh said.

Jet fuel accounts for about 7% of global oil demand, with markets becoming more vulnerable due to disruptions in Middle East supply, IEA said.

Earlier this month, the Civil Aviation Authority of the Philippines encouraged airlines to adopt sustainable aviation fuel (SAF) and is assessing the viability of local production.

The Institute for Climate and Sustainable Cities (ICSC) said adopting SAF from local and diversified feedstock could reduce reliance on imported fuels and help stabilize prices in the long term, shielding airlines from sharp fossil fuel price spikes.

“In the Philippines, however, these benefits will only be realized if domestic SAF production is developed and local feedstock supply is strengthened,” ICSC Chief Data Scientist Jephraim C. Manansala said via e-mail.

IATA reported in December that SAF accounted for 0.6% of total jet fuel consumption last year.

The group attributed limited supply to weak policy support and noted that SAF remains more expensive than fossil-based jet fuel.

“SAF today remains significantly more expensive than conventional jet fuel — typically around two to five times the cost. This premium makes voluntary uptake unlikely without support. Incentives can help bridge this gap and encourage initial adoption,” Mr. Manansala said.

“Imported SAF does not eliminate foreign dependence; it shifts it… For SAF to truly strengthen energy security, incentives must be tied to domestic production. That means supporting local industries with feedstocks, agricultural residues, waste oils, biomass, and building enough production capacity in the Philippines,” he added.

“Because of the pressure, it’s possible that we will import 4.8 million metric tons this year, or more,” Agriculture Assistant Secretary Arnel V. de Mesa told reporters on Tuesday.

He said the DA’s rice program has raised its import projection from an initial 4 MMT to ensure an 85-day year-end stock, a food security benchmark used by the agency.

For the first quarter alone, the Bureau of Plant Industry said the country imported 1.29 MMT of rice, which was 40.17% higher than the year-earlier shipments of 917,855 MT and 71.54% higher than the DA’s earlier forecast of 750,000 MT.

The DA said higher import volumes are needed to help stabilize local supply and prices amid a projected decline in rice production this year.

“There’s pressure because we’ll see in the next planting… we have three shocks that we can expect,” Mr. de Mesa said, citing rising oil prices, higher fertilizer costs, and a looming El Niño.

The Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) on Wednesday raised an El Niño alert, saying the phenomenon is likely to develop in the coming months and begin as early as June, bringing drier-than-usual conditions that could affect agriculture.

Mr. de Mesa said higher fuel costs could increase expenses for land preparation and farm operations, while fertilizer prices are being monitored at around P2,500 to P2,800 per bag.

The DA earlier cut its 2026 palay (unmilled rice) output estimate to 19.87 MMT from the original 20.28 MMT target following weaker first-quarter data.

“Because of the reduction in the estimates, their projection was reduced to 19.87 MMT,” Mr. de Mesa said.

The Philippine Statistics Authority reported that palay production in the first quarter likely declined 6.9% to 4.37 MMT from 4.7 MMT a year earlier.

Mr. de Mesa said output could fall further if input costs remain elevated.

“The 19.87 MMT can be further reduced… if the price of fertilizer goes up to as high as P3,500 per bag… [and] if the price of oil goes up to P150 to P190,” he said.

If production falls to around 18.8 MMT, this would be the lowest palay output since the 17.62 MMT recorded in 2016.

The DA said it is also monitoring the potential impact of El Niño, which could further dampen production in the coming months.

Mr. de Mesa said risks are more pronounced for the second cropping season, where output losses could be significant.

“For the second cropping season, the best-case scenario is 20% reduction in output; worst case is 50%,” he said.

“The projected harvest of the second crop is 10 to 11 million metric tons… 20% of that is 1 to 2 million metric tons. If it is half, it is up to 5 million metric tons that can be lost. That is the worst-case scenario.”

Meanwhile, the DA said it is promoting the use of biofertilizers as a cost-effective alternative to fuel-based inputs to help cushion the impact of rising costs.

“Many farmers are already using different types of biofertilizer, [and] it can reduce the requirements of inorganic [fertilizer] from 20% up to 50%,” Mr. de Mesa said.

He added that P500 million of the DA’s P1-billion Quick Response Fund, activated following the declaration of a state of national energy emergency, will be used to procure biofertilizers ahead of the next cropping season. — Vonn Andrei E. Villamiel

Money to help underserved residents protect themselves against climate change is once again threatened under San Diego Mayor Todd Gloria’s proposed budget. 

Gloria’s budget moves $7 million earmarked for climate projects in disadvantaged communities into the city’s general fund and spent elsewhere. These communities, which experience the worst effects of human-caused climate change, are typically lower-income, have a higher population of people of color and suffer historical wrongs like discriminatory housing practices or highways built through their neighborhoods. 

 
The Climate Equity Fund, where that money was supposed to go, was first proposed by Councilmember Vivian Moreno in 2021 to funnel money from San Diego Gas and Electric and state gas and transportation taxes toward those neighborhoods for infrastructure projects.  Gloria proposed cuts across all the city’s departments since the city faces a deficit north of $100 million. 

Gloria’s budget suspends those funds “in order to maintain existing city services,” wrote Peter Kelly, a spokesperson for the city’s Planning Department.  

Kelly said the city “will continue to prioritize infrastructure investments” in these communities. But the Climate Equity Fund, according to Gloria’s Administration, is no longer the primary way the city goes about doing that. He pointed to Council Policy 800-14, passed in December of 2022, which says the city should prioritize projects to eliminate disparities and sets up another definition for these communities called “structurally excluded community.”  

The Climate Equity Fund currently has $13 million dedicated to completing projects like traffic signal improvements in Barrio Logan, and stormwater drainage upgrades in City Heights. 

Gloria’s office did not respond to questions and instead directed them to the department facing the proposed cuts. 

It’s not the first time Gloria tried to move money away from climate equity. In 2024, he proposed moving the $8.5 million in the fund so it could be used elsewhere, before city councilmembers restored it. 

Gloria also proposed eliminating positions responsible for accomplishing pieces of the Climate Action Plan, called program coordinators.  

“We … found that these two Program Coordinator positions were not in alignment with other management positions in the department,” Kelly wrote.  

Instead, Gloria’s budget would add a new senior planner and principal planner positions that would take over this work, according to Kelly. 

Since taking office, Gloria has eliminated the Sustainability and Mobility Department which was focused on climate action work and making communities more bikeable, walkable and have better public transit access. He moved remaining staff from that department under the city’s planning department run by Heidi Vonblum.  

In October, Gloria sacked the former leader of the Sustainability and Mobility Department, Shelby Buso. As part of the reorganization, the mayor eliminated seven vacant positions in Buso’s department, touted as a savings of $914,000.  

The post Mayor Gloria’s Budget Cuts Fund for Underserved Neighborhoods appeared first on Voice of San Diego.

This post has been updated.

It seems like nobody is happy with Mayor Todd Gloria right now.

From supporters of libraries to artists to homelessness services providers to youth advocates, everyone’s got beef with his new budget proposal. The mayor’s plan proposes deep cuts to all sorts of city programs as a way to shore up a nearly $150 million budget shortfall. 

Our MacKenzie Elmer learned about another way the mayor is trying to solve the deficit: by not contributing to a rainy day fund for underserved San Diego neighborhoods. 

The Climate Equity Fund was created five years ago as a way to funnel money from SDG&E and state taxes into infrastructure projects that protect underserved neighborhoods from the impacts of climate change. Gloria’s proposal would redirect a $7 million contribution to the city’s general fund instead.

Read the full story here.

Correction: This section has been updated to correct that the mayor’s proposal is to redirect a contribution to the Climate Equity Fund to the general fund. Not to raid the Climate Equity Fund.

Dem Supes Advance County Reform Measure

San Diego County board Democrats on Tuesday voted to put major governance reforms on the November ballot that, if approved, will give supervisors more power.

The reforms, championed by Board Chair Terra Lawson-Remer, would give supervisors a potential third term, the power to approve the hiring of top county officials and to fire them with a super majority vote. The measure would also create two positions that report to the supervisors: an auditor and budget analyst. 

Republican Supervisors Joel Anderson and Jim Desmond, who voted against the measure, protested a series of last-minute changes to the measure before Tuesday’s vote. 

Read the full story here. 

Also at Tuesday’s Board Meeting

• Supervisors voted unanimously to approve Supervisor Paloma Aguirre’s proposal to develop a county film initiative that includes creating a county film office and rebate program to bolster the county’s status as production hub.

• Supervisors unanimously backed a plan to reallocate funds previously directed toward public-private partnerships to sleeping cabins for homeless residents instead, in order to expand a diversion program designed to move people out of homelessness. We wrote about how diversion works last year. 

• Board Democrats approved an agreement with the Mexican Consulate to help fund legal representation for Mexican nationals. Lawson-Remer said the agreement will allow Mexico to help pay the county’s costs.

Historic Twist: Kumeyaay Could Own the Padres

We heard this weekend and now The New York Times/The Athletic is reporting that the Sycuan Band of the Kumeyaay Nation is among the many partners purchasing the Padres alongside lead investors Jose Feliciano and his wife Kwanza Jones. Though it sounds like the partnership is far from set.

How the team became so valuable: Sportico, which covers the business of sports, had an interesting analysis of just how well the Padres have done generating revenue. Most data points about the team’s finances are confidential but the outlet said it had sources who reviewed the numbers as part of the sales process.

The Padres play in one of the smallest media markets in Major League Baseball and yet only 10 teams had more income and they all had better TV deals. “And, depending on what happens with MLB’s next collective bargaining agreement, the Padres’ economics could become even stronger.”

Show Me the Money

Money is pouring into the race for California’s 48th Congressional District — which is being vacated by Republican Rep. Darrell Issa. Democrats now have a slight edge in the district, post-redistricting.

On the surface, Democrat Brandon Riker appears to be in the strongest position with more than $1,000,000 in cash on hand. But there’s more going on here, writes contributor Mason Herron. The vast majority of Riker’s dollars come in the form of loans to his own campaign — which are different than contributions. 

When it comes to contributions alone, San Diego city councilmember Marni von Wilpert has outraised the other Democrats in the field in recent reports. 

Republican County Supervisor Jim Desmond also had a strong war chest with more than $1,000,000 cash on hand. 

Read the full story here.

In Other News

• A San Diego Superior Court judge has tentatively ruled that right-wing news outlet One America News Network can’t stop a social media influencer from calling politician-turned-commentator Matt Gaetz a pedophile. The decision comes after the San Diego-based network applied for a restraining order against the social media provocateur. (Times of San Diego)
• SDG&E customers are getting cheaper electricity. During midday hours, customers can run appliances like dishwashers and air conditioning at a much lower price. (Union-Tribune)
• Juvenile great white sharks that have called the San Diego coast home in the last few years have left the area, researchers discovered. But if you’re missing the sharks don’t worry. Warmer-than-usual water, and potentially a full-on El Niño, are expected this year and that may bring in lots of new and different sharks! (Union-Tribune)
• Former female athletes from San Diego State University will receive a combined $300,000 in damages after they sued the school for violating federal gender equality laws. The settlement marks the first case in which a school will pay damages to female athletes for unequal athletic financial aid. (USA Today)
• Google’s AI-powered search is favoring a city-run website rather than actual news outlets. That means citizens seeking out news written by a reporter, are instead finding updates written by public relations specialists whose job is to cast the city in positive light. (Axios San Diego)
• Big study find pot make kid dumbr. (UCSD)

The Morning Report was written by Mariana Martínez Barba, Jakob McWhinney and Lisa Halverstadt. It was edited by Will Huntsberry.

The post Morning Report: Climate Equity Fund Takes a Hit appeared first on Voice of San Diego.

Last week, I received a surprising press release from the Del Mar Fairgrounds in my inbox. 

“22nd DAA Board votes to part ways with CEO,” the presser said. 

The 22nd District Agricultural Association Board of Directors, which oversees the Del Mar Fairgrounds, voted in a closed session meeting on April 14 to fire its CEO Carlene Moore. The board also named Board Chairman Sam Nejabat as interim CEO for 10 days. 

Fairgrounds officials gave no reasons for Moore’s termination. 

Some residents have speculated to me that it could be a response to a string of scandals and lawsuits the Del Mar Fairgrounds has faced during Moore’s six years as CEO. We’ll get into that, but first I want to look back further—before Moore came to the Del Mar Fairgrounds. 

Trouble in Calistoga 

Moore joined the 22nd DAA as deputy general manager in 2019. Before that, she was CEO of the Napa County Fairgrounds in Calistoga for nine years.  

Leading up to her departure from Napa County, she wasn’t a favorite among some Calistoga residents. 

The Napa County Fairgrounds, which is home to the Napa County Fair, a speedway and a golf course, faced serious decline during Moore’s tenure, according to a Grand Jury Report from May 2017. (Grand Juries like the one in this case are local citizens commissions that have some power to audit local institutions. They are not a part of the court system.) The Fairgrounds faced a structural budget deficit, deteriorating infrastructure and a gradual decline in attendance. 

The Grand Jury found the Fairgrounds in a “disturbing” state, the report noted.  

It found pervasive “neglect and lack of maintenance” affecting “every element of the Fairgrounds properties, including the buildings, the grounds, and all the facilities intended for public use,” the report continued. “Further, the Grand Jury found a disconcerting lack of transparency in the financial reporting of the Fairgrounds Association and signs of divisiveness in the conduct of its Board of Directors.” 

When the Grand Jury released the report in 2017, the Fairgrounds revenue had not exceeded its expenses since 2011. Moore became CEO in January 2010.  

Some residents blamed Moore for the Fairground’s troubles. News reports from Moore’s last few years in Calistoga detail a growing resentment from many community members toward her leadership.  

For example, during a Napa County Fair Association Board of Directors meeting in August 2017, one resident named Ted Surber said he thought the problems with the fairgrounds started when Moore took over management, according to a 2017 report by the Napa Valley Register. 

“Since she came here, this fairgrounds has gone steady downhill. We’ve all seen it happen. The fair manager needs to be able to handle a lot of different hats and have a lot of experience … this is a hard job here, you’re running a big business. Uh uh, she can’t do it,” he said. 

Another resident, Scott Atkinson, called for Moore’s resignation at the same meeting. 

Eventually, in 2018, the Napa County Fairgrounds shut down a majority of its operations before completely shutting down in 2020. Moore started working at the Del Mar Fairgrounds in February 2019 as a deputy general manager, before becoming interim CEO and eventually CEO. 

 In 2024, the city of Calistoga purchased the dilapidated Fairgrounds from the county of Napa, and it’s now known as the Calistoga Fairgrounds. Calistoga officials have said it may take several years before the Fairgrounds can be used again because it’s in need of significant infrastructure repairs. 

Trouble at the Del Mar Fairgrounds 

Criticism of Moore’s leadership has continued at the Del Mar Fairgrounds, even up until her last day. 

At the April 14 22nd DAA board meeting, several public speakers urged the board to fire Moore. 

Former board president Russ Penniman told the board there was widespread dissatisfaction with Moore among longtime staff members. And Donna Ruhm, a former commercial director for the San Diego County Fair, said she retired after the 2021 fair because of what she called toxic leadership. 

And that’s not all. I recently wrote about the Fairgrounds getting hit with another lawsuit just last week. 

Brad Oates is suing the agency for age discrimination, wrongful termination and rest and meal break violations, according to a complaint filed on April 16, two days after Moore was fired. He alleged Moore passed him over for a job because of his age and hired her nephew instead.  

Last year, former fairgrounds executive Melinda Carmichael also sued the Del Mar Fairgrounds and the 22nd DAA alleging retaliation and a toxic work environment.  

Moore was also at the center of that complaint.  

In her 2025 complaint, Carmichael stated that, starting in 2022, she repeatedly raised concerns of alleged illegal conduct, racist remarks and other actions by a former human resources director. But Carmichael faced retaliation for her complaints from Moore, she claims.   

In 2024, the Farigrounds agreed to pay the federal government $5.5 million to settle allegations it had received funds from the pandemic-related Paycheck Protection Program even though it was not eligible. 

In 2021, the Fairgrounds and 22nd DAA faced a lawsuit from carnival operator Talley Amusements, which alleged that Moore and Fairgrounds officials rigged a contract process to ensure that a different carnival operator would get the exclusive rights to run the games and rides at the County Fair.  

That lawsuit eventually settled in court with the Del Mar Fairgrounds having to pay $500,000 to Talley Amusements.  

Have any information, tips or story ideas you want to share? Email me at tigist@vosd.org. 

In Other News 

• California Attorney General Rob Bonta and the San Pasqual Band of Mission Indians are both suing the city of Poway because the city allegedly violated environmental law by letting construction proceed on a housing development where Native American remains and artifacts have been found. (Union-Tribune) 
• Oceanside is considering using some funds from its half-cent sales tax measure, Measure X, for a homeless outreach program made up of case managers and social workers, which would replace the Oceanside Police Department’s current Homeless Outreach Team. (Coast News) 

The post North County Report: Del Mar Fairgrounds CEO Had Rocky History  appeared first on Voice of San Diego.

County Supervisor Joel Anderson successfully pushed a trio of transparency measures on Wednesday. 

The county Board of Supervisors unanimously passed each of his proposals to explore ways to make secret board subcommittees public, set guardrails for county-funded polling and improve the county’s response to records requests. 

The board’s decision follows reporting by Voice of San Diego on board subcommittees being held behind closed doors, board Chair Terra Lawson-Remer’s county-backed poll-testing of potential ballot measures and the county’s slow-rolling and denials of public records releases. 

County staff will need to report back to the board before policy changes.  

Anderson proposed the county throw more sunlight on board subcommittees after months of behind-the-scenes meetings where supervisors have discussed topics such as ways the county can respond to the fiscal challenges it predicts ahead – and a controversial bidding process.  

On Wednesday, supervisors approved Anderson’s motion to direct the clerk of the board to return to the board within 30 days with options to amend county policy so officials must publicly post recordings, agendas and materials associated with board subcommittees – and ensure information on consultants including costs and contracts are made public. 

Before the vote, Lawson-Remer – who leads multiple subcommittees that have met behind the scenes – said she appreciated the proposal and acknowledged some subcommittees should probably be standing committees that would be subject to the state open meetings law. 

Attorney David Loy of the First Amendment Coalition previously told Voice that he thinks the county’s ad-hoc subcommittees should be subject to the open meetings law – and thus include more public participation – because they are focused on ongoing county issues. 

Lawson-Remer also praised Anderson’s push to set rules governing the use of county funds for polls.  

He proposed that county lawyers review and approve proposed questions, plus the scope of work and compensation for polling firms hired by county leaders. It also called for poll questions, results, participant demographics and contract details to be posted publicly online within 30 days after the poll is completed. 

On Wednesday, Anderson clarified that the policy would only apply to polls and surveys involving outside contractors after questions from other supervisors. 

“I really want these guidelines,” said Lawson-Remer, who has recently spent $89,000 in taxpayer funds on polls. 

She previously told Voice she has already followed the rules Anderson sought but thinks a clear process would be helpful. 

County lawyers will now work on proposed guidelines and return to the board once they’re ready. 

Anderson’s third proposal called for the county to rework its records review process for Public Records Act requests in hopes of creating more consistency and efficiency. 

He wants the county to create a standardized records process that requires all requests to go through the Clerk of the Board of Supervisors and County Technology Office, which would then search and compile electronic records rather than have supervisors’ offices or county departments handle those. 

“Right now, the chicken hawks – us – are looking through our own documents to give to the public,” Anderson said. “I want a third party looking at our documents to make sure we are clean as a whistle, and we are handing over all the documents that make sense.” 

Supervisor Monica Montgomery Steppe proposed amendments to get feedback from county records coordinators about issues with the current process and to analyze cost and staffing needs tied to Anderson’s pitch. Montgomery Steppe said she was concerned there could be unexpected costs tied to software to do records searches and that the technology office doesn’t have the sufficient staffing. 

Anderson accepted Montgomery Steppe’s additions and the board agreed that county staff should return to the board within 120 days with updates. 

The post Supervisors Move to Make Secret Meetings Public  appeared first on Voice of San Diego.

In a disclosure on Tuesday, the conglomerate said its consolidated net income increased 10% to P30.6 billion from P27.9 billion a year earlier.

Consolidated revenues reached P189.7 billion, supported by higher contributions from its real estate and leisure and entertainment segments.

The group’s earnings were partly lifted by one-time revaluation gains of P3.4 billion and the deconsolidation of its quick-service restaurant unit, Golden Arches Development Corp. (GADC), which is now treated as an associate after AGI retained a 49% stake.

Excluding one-off items, AGI’s normalized net income rose 2% year on year to P27.0 billion on consolidated revenues of P176.3 billion, while normalized attributable net profit stood at P17.3 billion.

“Once again, the group delivered another strong financial and operating performance in 2025 despite macroeconomic headwinds. Most of our businesses surpassed peer levels, particularly in the office, retail residential, and leisure and hospitality segments,” AGI Chief Executive Officer Kevin L. Tan said.

“Our profitability was further supported by conscious cost efficiency measures which we intend to continue implementing across the business,” he added.

Property unit Megaworld Corp. remained the largest contributor, with consolidated revenues rising 5% to P85.9 billion, driven by a 10% increase in recurring income.

Office rentals grew 11%, while revenues from lifestyle malls and hotels both increased by 9%, supported by occupancy rates of 87% for offices, 91% for malls, and 60% for Metro Manila hotels.

Real estate sales rose 2% with gross profit margins of 52%, while attributable profit increased 12% to P21.0 billion.

Travellers International Hotel Group, Inc., which operates Newport World Resorts, posted a 2% increase in net revenues to P31.9 billion, as a 4% increase in gaming revenues to P24.2 billion offset a 4% decline in hotel and other revenues to P7.6 billion.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 7% to P9.0 billion, while attributable profit increased 21% to P1.5 billion due to lower financial charges.

Emperador, Inc. reported consolidated revenues of P57 billion amid a softer global spirits market, supported by its brandy business and international distribution network.

The liquor unit posted an attributable net income of P3.9 billion, backed by cost management, improved margins, and a focus on profitability.

“While we face this year with cautious optimism, we are excited to advance several initiatives that showcase our pursuit of excellence. We look forward to balancing proactive improvements with a strategic response to ongoing geopolitical and macro challenges,” Mr. Tan said.

AGI has interests in real estate through Megaworld, spirits through Emperador, leisure and hospitality through Travellers International, and quick-service restaurants through its stake in GADC, the operator of McDonald’s Philippines.

AGI shares fell by 0.21% to P9.37 apiece on Tuesday. — Alexandria Grace C. Magno

ESCAP cut its forecast for 2026 Philippine gross domestic product (GDP) growth to 5.2% from 6.3% previously, according to its Economic and Social Survey of Asia and the Pacific 2026 report released on Tuesday.

This is also slower than the 5.7% projection in the World Economic Situation and Prospects 2026 report published by the UN Department of Economic and Social Affairs (DESA) in January.

Philippine GDP grew by 4.4% in 2025, a post-pandemic low, as a corruption scandal linked to state infrastructure projects shackled public spending and hit both investor and consumer confidence.

For 2027, the ESCAP sees Philippine economic growth picking up to 5.7%. This is below UN DESA’s 6.1% forecast.

Despite this, both estimates are within the government’s 5%-6% and 5.5%-6.5% GDP growth targets for 2026 and 2027, respectively.

If realized, the Philippines would post the second-fastest expansion in Southeast Asia for this year and next behind Vietnam, which ESCAP expects to grow by 7.6% in 2026 and 7.8% in 2027.

Growth in the region is expected to come in at 4.5% this year and 4.6% next year.

Meanwhile, ESCAP sees the Philippine consumer price index (CPI) averaging 2.5% in 2026 and 2027, within the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% target.

The BSP said in March that it now expects inflation to average 5.1% this year as the conflict’s impact on global crude oil prices is expected to spill over into domestic food, energy, and transport costs.

For 2027, it sees the CPI returning within its target, averaging 3.8%.

“The ongoing Middle East conflict is adding fresh pressure to the economic outlook of Asia and the Pacific, disrupting energy and commodity markets, and trade and connectivity routes at a time of already high global economic uncertainty,” ESCAP said in a statement on Tuesday.

It said the forecasts in the report are as of March 17 and already factored in the immediate macroeconomic impacts of the conflict in the Middle East.

“These baseline projections assume that de-escalation over the course of 2026 will help stabilize commodity prices and restore market sentiment to some extent,” it said. “Yet the situation remains highly uncertain, and the eventual economic impacts will depend on the scale and duration of the conflict.”

In case of a prolonged conflict, they said they expect growth to be “notably lower than currently projected while inflation would be higher.”

“Under this scenario, a surge in commodity prices and freight costs as well as supply chain disruptions will spike inflation and interest rates; weaker global demand will dampen merchandise exports, remittances and tourism; and subsequent job losses and plunging market sentiment will hurt consumer spending, business investment and economic growth.”

It said the extent of the conflict’s inflation impact will depend on factors like their dependence on and ability to secure imported energy and food and their energy reserve levels.

“Countries such as Japan, Malaysia, the Philippines and the Republic of Korea rely heavily on imported food for domestic consumption.”

The Philippines is also a net oil importer and gets over 90% of its supply from the Middle East, making it vulnerable to current shocks.

The war could also affect remittances, ESCAP said, which is a key driver of household consumption in the Philippines.

“Slower economic growth would hold back government revenues while higher market interest rates and perceived sovereign risks will push up government borrowing costs. In countries where price subsidies for food and fuel are maintained, fiscal expenditures will likely be higher,” it added. “Weaker exchange rates will also increase the value of external public debt in local-currency terms, thus increasing the debt-servicing burden.”

“Taken together, these would further constrain fiscal space at a time when more fiscal support is needed to navigate the impact of the conflict.”

ESCAP said the global crisis is a wake-up call for Asia and the Pacific to strengthen its energy resilience and lessen its reliance on fossil fuels, although transition policies must be designed carefully to avoid adverse socioeconomic effects.

Tariff hikes and rising trade protectionism also present additional external risks, it added.

“Tariffs on steel and aluminum would disproportionally affect exports from India, the Republic of Korea and Vietnam, while those on semiconductors could especially hamper Malaysia, the Philippines, Singapore, Thailand and Vietnam. The eventual impact of these sectoral tariffs on countries in the region will also hinge on the United States’ ability to substitute these imports with domestic production and on tariff exemptions or reductions through negotiations.”

Since August 2025, the Trump administration has imposed a 19% reciprocal tariff on most goods from the Philippines, as well as Cambodia, Malaysia, Thailand and Indonesia.

However, the US Supreme Court earlier this year ruled that US President Donald J. Trump had exceeded his authority when he imposed his previous tariff regime. This prompted Mr. Trump to impose a 15% tariff on all imports. — Bettina V. Roc

THE PHILIPPINES’ external debt service burden surged in January due to a spike in principal payments as obligations matured, preliminary central bank data showed.

The country’s debt service bill for foreign loans jumped by 81.11% to $1.505 billion in the first month of the year from $831 million in January 2025, according to data on the Bangko Sentral ng Pilipinas’ (BSP) website.

Broken down, principal payments ballooned by 763.64% year on year to $769 million in January from $88 million previously.

Meanwhile, interest payments inched up by 0.27% to $745 million from $743 million a year earlier.

External debt service burden is made up of principal and interest payments on fixed medium- and long-term credits, including International Monetary Fund credits and new money facilities, as well as interest payments on fixed and revolving short-term liabilities of banks and nonbanks.

The data exclude prepayments on future years’ maturities of foreign loans and principal payments on fixed and revolving short-term liabilities of banks and nonbanks.

The increase in the Philippines’ external debt service bill in January was likely due to higher interest costs due to the elevated global rates, as well as some refinancing or liability management activities, Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

The large volume of maturing foreign obligations likely resulted in higher debt payments, with the National Government’s wider budget deficits in recent years since the coronavirus pandemic also leading to more external borrowings, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“The higher US dollar-peso exchange rate also led to higher peso equivalent of foreign currency debt principal and interest payments,” he said.

The peso traded at the P58-to-P59 levels against the greenback in January this year versus the P57-P58 range in the same month in 2025.

Moving forward, he said the country’s debt service bill may continue to rise as some of its foreign obligations fall due in the coming months, including $112 million in global bonds maturing in August as well as other official development assistance and multilateral loans.

“Still elevated US dollar-peso exchange rate near the P60 levels would increase the peso equivalent of foreign debt principal and interest payments,” Mr. Ricafort said.

Since the US and Israel began attacks on Iran on Feb. 28, the peso has weakened to breach the P60-per-dollar level, even hitting a new record low of P60.748 on March 31.

“External debt servicing is expected to remain elevated but manageable, aligned with the government’s repayment schedule. While higher global interest rates may keep costs up, these are planned obligations, and the Philippines still maintains adequate buffers such as reserves and stable forex (foreign exchange) inflows to meet them without major stress,” Mr. Rivera added.

As of end-2025, the debt service burden as a share of gross domestic product stood at 30.3%, up from 29.8% in the prior year, preliminary BSP data also showed.

Meanwhile, the Philippines’ total external debt rose by 7.28% to $147.651 billion at end-2025 from $137.628 billion in 2024.

Of this, $94.867 billion was public sector debt while $52.784 billion came from the private sector.

The BSP’s external debt data cover borrowings of Philippine residents from nonresident creditors, regardless of sector, maturity, creditor type, debt instruments or currency denomination.

The central bank gathers data on external debt through reports submitted by borrowers, banks, and major foreign creditors.

“In our escalatory scenarios, we see further scope for downward growth. Under our level three scenario, we expect growth to slow to around 4%, down from 4.4% in 2025, which will mark the weakest upturn since 2011, excluding the pandemic period,” BMI Asia Country Risk Analyst Brandon Ong said in a webinar on Tuesday.

This forecast is well below the government’s 5%-6% target.

BMI’s worst-case escalation scenario sees the conflict lasting for more than three months after April, with Brent crude hitting $150 per barrel.

“We currently expect oil prices to fall relatively quickly once the conflict winds down, but the risks are tilted towards prices remaining higher for longer depending on the extent of infrastructure damage before the situation settles,” BMI Head of Asia Country Risk Darren Tay said.

BMI said in a note dated April 20 that faster inflation due to higher oil prices will erode household purchasing power and weigh on domestic consumption in the Philippines.

“As such, we hold a cautious but positive outlook for consumer spending in the Philippines, with a slowdown in real household spending growth from 4.7% in 2025 to 4.5% year on year in 2026. In real terms, we expect household spending to grow to P14.1 trillion (at 2010 prices) over 2026, 26.2% higher than 2019 levels,” it said.

“Spending will remain influenced by the elevated inflationary pressures as well as currently high debt levels, along with related debt servicing costs, although a tight labor market will still support spending.”

Despite growing inflation risks, it expects the Bangko Sentral ng Pilipinas’ (BSP) Monetary Board to stand pat at its meeting this week. “The March 2026 inflation print came in at 4.1%, breaching the BSP’s 2-4% inflation target range for the first time since July 2024. That said, given the weak growth backdrop, we think the bank will opt to look past temporary supply-driven price surges and adopt a wait-and-see approach.”

“Moreover, our current projections show inflation returning to the target range in the second half. Monetary policy is also less well-positioned to tackle supply-side price shocks,” Mr. Ong added.

He said that while they expect a pause this week, they see a rate hike in June or in an off-cycle meeting.

This comes as BMI sees headline inflation breaching 4% throughout this quarter, with second-round effects further fueling price increases.

“Unlike in Thailand and several other countries in Asia, the [Philippine] government does not typically absorb higher energy costs, so rises in global energy prices pass through relatively quickly. We are already seeing this in the data,” Mr. Ong said.

As of April 13, diesel and gasoline prices have increased by 172% and 72.6%, respectively, from pre-conflict levels, which are among the sharpest increases in Asia, he noted.

Meanwhile, the peso could weaken to as low as the P65-per-dollar level if oil prices stay higher for longer due to a prolonged war as this could affect the country’s current account balance and investor sentiment.

“Even so, in our base case, we still expect the peso to strengthen as the conflict de-escalates and for the peso to trade around P59.50 per US dollar by end-2026,” Mr. Ong said. — A.M.C. Sy

THE PHILIPPINES might miss its target of achieving an “A”-level credit rating within the next two years as another debt watcher cut its outlook for the country, with the Middle East war and slowing public investments putting the country’s growth prospects at risk.

On Monday, Fitch Ratings affirmed the Philippines’ long-term foreign-currency issuer default rating at “BBB” but downgraded its outlook to “negative” from “stable.”

“The outlook revision reflects rising risks to the Philippines’ strong medium-term growth prospects from recent disruptions to public investment, exacerbated in the near-term by elevated exposure to the ongoing global energy shock. These challenges could narrow the country’s GDP (gross domestic product) growth outperformance relative to peers, amid higher post-pandemic government debt and a gradual and sustained deterioration in its external finance position,” it said.

“The affirmation reflects our baseline that, despite rising risks, medium-term GDP growth will remain robust, supporting a gradual reduction in government debt.”

A “negative” outlook from a credit rater means it sees a higher likelihood of a downgrade over the next two years.

The government is aiming to achieve an “A” level rating by 2028 or the end of the Marcos administration.

Fitch last gave the Philippines a “negative” outlook in 2021 during the coronavirus pandemic, which it later affirmed throughout 2022. This was revised back to “stable” in May 2023.

Earlier this month, S&P Global Ratings also revised its outlook for the Philippines to “stable” from “positive” but affirmed the country’s “BBB+” long-term rating as it expects the country’s fiscal and external position to come under pressure due to the Middle East conflict.

War-driven shocks are likely to upset growth and inflation outcomes as they discourage investment and household consumption, said GlobalSource Partners Philippine Analyst and Principal Advisor Diwa C. Guinigundo, who is also a former central bank deputy governor.

“In the process, it might also increase the country’s risk profile and further moderate the growth momentum,” he said in a Viber message.

“If these geopolitical risks should continue beyond this year, and no decisive policy actions are forthcoming, achieving an ‘A’ investment grade rating could not happen in the last two years of this administration.”

Fitch’s move to downgrade its rating outlook reflects the country’s high exposure to risks from the Iran war, he added.

“We are overly dependent on imported oil, our fiscal space continues to narrow, and inflation is likely to breach the target for 2026.”

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said the “negative” outlook is a “reality check” rather than a crisis.

“The upgrade story is clearly over, and the Philippines is now in defense mode. Other agencies could revise outlooks, but a downgrade is not imminent as long as growth stabilizes, inflation is contained and fiscal execution improves,” he said in a Viber message.

“The risk is clear: if oil prices stay high and the current-account deficit widens without a strong policy response, the cushion protecting our ‘BBB’ rating gets very thin.”

Surging oil prices and dwindling fuel reserves have pushed the Philippine government to put the country under a one-year state of national energy emergency and suspend excise taxes on liquefied petroleum gas and kerosene.

The Bangko Sentral ng Pilipinas (BSP) expects inflation to average 5.1% this year, well above its 2%-4% target and last year’s 1.7% print, as the conflict’s impact on global crude oil prices is likely to push up domestic food, energy, and transport costs.

In March, the consumer price index already breached the central bank’s goal as it accelerated to 4.1% due to rising fuel prices.

For its part, Fitch sees inflation averaging 4.1% in 2026. “Risks are tilted towards higher inflation if the shock is prolonged, adding to affordability challenges for households.”

FISCAL CONCERNS
Mr. Guinigundo added that interventions needed to cushion the economic impact of the war could affect the country’s fiscal position.

“The medium-term fiscal consolidation may be delayed because of the need for fiscal support to the economy, including those for vulnerable sectors,” he said. “That could further erode market confidence in the country’s economic prospects.”

He said, “mitigating measures may be difficult to establish at this point because the problems are structural, and they cannot be done in the short term.”

“We should have done our homework decades ago.”

Fitch said it expects the government’s fiscal consolidation plan to continue gradually over the next few years.

“We expect the general government fiscal deficit to be steady at 3.7% of GDP in 2026. This is consistent with a stable National Government deficit of 5.6% of GDP, slightly above the 5.3% budget target, as we expect weaker growth to weigh on revenues. Targeted energy subsidies limit fiscal risks, though a protracted energy shock could lead to fiscal risks from greater social pressures to boost spending,” it said.

“Risks are tilted toward a slower pace of deficit reduction as we believe the government is likely to prioritize GDP growth objectives and social stability.”

The conflict’s impact on the country’s credit profile will likely manifest through “lower GDP growth, higher inflation and a rising current account deficit, with modest risks to public finances,” it added.

It expects the economy to expand by 4.6% this year, below the government’s 5%-6% goal, as it sees public spending — which was stalled by a graft scandal tied to flood control projects, leading to a post-pandemic-low GDP growth of 4.4% in 2025 — recovering only gradually. Higher energy costs amid the war could also hit household consumption, a key growth engine.

“Investment, in level terms, since 2021 has run below its pre-pandemic trend and is under further pressure amid the recent pullback in public investment. This adds headwinds to our just over 6% medium-term growth assumption. Public capex (capital expenditure) is an important component of our medium-term outlook as it addresses infrastructure gaps and crowds in private investment,” Fitch added.

“Efforts to improve governance around capex disbursements are positive but could result in lower infrastructure spending and GDP growth multipliers in the coming years. However, successful capex governance reforms, and efforts to deepen private sector involvement, could enhance the quality and efficiency of spending that would keep GDP growth multipliers high even if spending is lower.”

LONG-TERM PROSPECTS INTACT
Palace Press Officer Clarissa A. Castro, citing the Department of Finance, said that the “negative” outlook does not mean an impending sovereign rating downgrade.

“Fitch also explicitly highlighted the government’s decisive and proactive response to global challenges, particularly the energy shock,” she said at a news briefing on Tuesday.

The government’s efforts to declare a state of national energy emergency and implement fuel-saving strategies “demonstrate agile and responsible economic management, which continues to strengthen market confidence.”

“Aside from that, the Philippines continues to enjoy strong access to global capital markets supported by a diversified investor-based and sustained demand for its Republic of the Philippines issuances,” she said.

“These are clear indicators of investors’ trust in the country’s long-term trajectory.”

The Finance department largely attributed the outlook cut to the situation in the Middle East.

“The revised outlook was caused by the external geopolitical shock coming from the Middle East. The affirmation of our rating reflects our strong economic fundamentals and sound fiscal position,” it said. “The Philippine economy remains on solid footing with a robust domestic market, stable financial system, and recognized reforms.”

“The economy remains in a good position because growth is strong, and banks are in good shape,” BSP Governor Eli M. Remolona, Jr. said in a statement on Monday. “The BSP is closely monitoring the impact of higher oil prices and geopolitical developments, particularly the conflict in the Middle East, on inflation and the overall Philippine economy.”

The central bank’s policy-setting Monetary Board will meet on Thursday (April 23), where some analysts expect a preemptive rate hike to help keep inflation expectations in check as they expect second-round price effects from the war-driven oil shock to emerge soon.

The former nonprofit executive ensnared in a county contracting scandal is now facing three new felony charges.

Ex-Harm Reduction Coalition Chief Operating Officer Amy Knox has pleaded not guilty to all charges which now include allegations that she submitted a falsified $105,000 invoice to the county, filed fraudulent tax returns and stole two trips meant to be auctioned off to support another nonprofit. She had previously been hit with six felony charges.

Knox’s Monday arraignment in San Diego Superior Court followed her release from county jail late last week.

Our Lisa Halverstadt has more details on the new allegations against Knox, how the county and another contractor now pulled into the scandal are reacting and on the release conditions Knox is facing after her two-month jail stint.

Read the full story here.

Border Report: Deaths of Mexicans in U.S. Detention Centers Are On the Rise

Mexican officials are calling on consulate staff to inspect U.S. detention centers as in-custody deaths continue to rise.

At least 50 people have died while in custody at U.S. detention centers during the Trump administration so far, and at least 14 of those people were from Mexico, according to ICE.

Now, Mexican President Claudia Sheinbaum is instructing consulate staff to increase oversight at U.S. detention centers including through daily visits to detention sites. A San Diego consulate staffer told Voice contributor Kate Morrisey that these daily visits are already happening.

Consulate staff conducts roughly 40 to 50 interviews a day at Border Patrol stations, as well as six to 10 interviews at ICE detention centers, one official said.

Read the Border Report here. 

Rebels Prevail in San Diego Unified Union Election

San Diego Unified teachers union President Kyle Weinberg has lost his bid for a third term atop the influential San Diego Education Association. 

Weinberg was defeated by current SDEA Vice President Monique Barrett, who received about 57 percent of the votes. His ally, Lincoln teacher Kiki Ochoa, also lost his bid for vice president to East Village Middle College teacher Matthew Schneck, a Barrett ally.

The upset came after a messy election period, during which long-brewing tensions burst into the open — and at a time of significant budget cuts. The union’s governing board passed a resolution of no confidence in Weinberg last month for allegedly acting without board approval and undermining the board’s authority.

Barrett and Schneck say they want to foster greater communication and transparency.

“We want to mend our relationships with [other unions] and maintain real solidarity,” Schneck said. “We can’t do our work in the classroom without them, and we’re never bargaining without them again.”

Despite the turmoil, teachers did well under Weinberg. The union secured big raises year after year, fought off layoffs and notched victories on programs like community schools and workforce housing.

“I’m very proud of all the organizing work we’ve done to move toward being a fighting social justice union,” Weinberg said. “I’m going to support the new SDEA leadership team in continuing that trajectory.”

Fairgrounds CEO Out, Just as New Lawsuit Drops

The timing is conspicuous. 

Just days after the Del Mar Fairgrounds fired its CEO Carlene Moore, a former employee hit the agency with a lawsuit, our Tigist Layne has learned.

Last Tuesday, the board which oversees the Del Mar Fairgrounds, abruptly fired Moore in a closed session board meeting — and it’s still unclear why.

Two days later, a former employee filed a lawsuit against the Fairgrounds and placed Moore at the center of the complaint. 

The former employee, Brad Oates, alleges that he faced age discrimination and wrongful termination. Specifically, he alleges that Moore passed him over for a job in which he had a decade of experience because he was “too old,” instead choosing to hire her own nephew for the role.

It’s not the first lawsuit the Fairgrounds has faced in the past several years.

Read the full story here.

State DAs Org Opposes County Charter Reform

Today county Board Chair Terra Lawson-Remer will ask her colleagues to place a raft of proposed county governance reforms on the November ballot. The California District Attorneys Association isn’t cheering her on.

An attorney representing the organization sent a letter to Lawson-Remer arguing the measure’s proposal to apply three four-year term limits to sheriffs and district attorneys along with supervisors could legally sink the measure.

“Unfortunately, the voters of San Diego County have no legal power to adopt such a conditional provision and thus, a court would be authorized to remove the whole proposed charter amendment from the ballot,” attorney Thomas W. Hiltachk wrote.

Related: Lawson-Remer’s office has added a severability clause to the proposal, meaning if any provision of the measure is ruled invalid, other parts can take effect.

In Other News

• Balboa Park leaders say paid parking has caused an almost 34 percent drop in visits to the park’s museums and other venues and a $5 million decrease in revenue year-over-year. But city officials say parking revenue has been increasing since January. (Union-Tribune)
• Oceanside officials have kicked off plans to repair the burnt Oceanside Municipal Pier, with construction expected to begin in April 2027. (Union-Tribune)
• An El Centro resident is facing felony charges for allegedly making online threats to the developer of a controversial AI data complex moving forward in Imperial Valley. (KPBS)
• Want more information about Measure A, the “Non-primary Homes Tax?” KPBS has a breakdown of how Measure A would work if approved by voters this June, and what the revenue from the tax would fund. (KPBS)

The Morning Report was written by Lisa Halverstadt, Tigist Layne, Jakob McWhinney and Andrea Sanchez-Villafaña. It was edited by Will Huntsberry. 

The post Morning Report: Ex-Harm Reduction COO Faces More Charges appeared first on Voice of San Diego.

This post first appeared in the Politics Report.

The race for the 48th Congressional District is one of the most closely watched not just in California, but nationally — and the amount of money pouring in to campaigns reflects that.

This week we got the latest round of fundraising figures from the major candidates: Brandon Riker (D), Ammar Campa-Najjar (D), Marni von Wilpert (D), and Jim Desmond (R).

For the most recent quarter (Q1 2026), Marni von Wilpert led the field with $520,715 raised, followed by Brandon Riker at $382,659. Jim Desmond and Ammar Campa-Najjar were close behind, bringing in $275,874 and $277,146, respectively.

Here’s where they currently stand in terms of cash on hand—the amount available to spend:

• Riker (D): $1,089,814

• Desmond (R): $1,064,356

• von Wilpert (D): $545,798

• Campa-Najjar (D): $456,365

On the surface, Riker appears to be in the strongest position, with Desmond not far behind. But there’s a bit more going on here.

The biggest factor is that the vast majority of Riker’s total — around $856,000  — comes in the form of loans to his own campaign. That’s different from a contribution. A candidate can repay a loan (even to themselves) but once money is contributed, it’s gone. So the loan money is available to spend, it is inflating his numbers. Whether he actually intends to deploy that money is something only his campaign knows.

Desmond’s numbers are fairly routine. He’s consistently raised in the low- to mid-six figures, and this quarter was no different, bringing in $276,000. As the only notable Republican in the race, he has a clear lane to consolidate GOP donors and could see an uptick following a recent endorsement from President Donald Trump.

Ammar Campa-Najjar came out strong, raising nearly half a million dollars in his first report, but his totals have declined each quarter since, including $277,000 this most recent period. That likely reflects early access to “low-hanging” donors when the Democratic field was thinner, before the passage of Proposition 50 made the race more attractive and drew in additional candidates.

Marni von Wilpert had her strongest quarter to date, bringing in $520,000. If you set aside Riker’s self-loans, she narrowly outraised Campa-Najjar and Riker combined. She’s also the only candidate whose contributions have grown each quarter (again, excluding Riker’s loans).

The most telling signal may be how PAC money is starting to line up behind von Wilpert.

In Q1 2026, PAC contributions to the three Democratic candidates broke down as follows:

• von Wilpert: $108,250 (27 PACs)

• Campa-Najjar: $16,000 (7 PACs)

• Riker: $1,000 (1 PAC)

Her first-quarter numbers suggest that the Democratic establishment may be starting to coalesce around her. Contributions came from LGBTQ caucus PACs, organized labor (IBEW, NEA, NUHW), trial lawyers (AAJ PAC), national strategic PACs (Take Back the House, No Vote Left Behind, Resistance), and leadership PACs tied to sitting House Democrats (Barragán, Aguilar, Doggett), along with direct transfers from Reps. Julia Brownley and Juan Vargas.

It’s still early, but the pattern points to emerging momentum. Beyond the direct financial benefit, it also signals the potential for outside spending during the primary from these same networks or aligned groups.

The post Who’s Got the Money in the 48th? appeared first on Voice of San Diego.

San Diego County board Democrats on Tuesday voted to put major governance reforms on the November ballot that, if approved, will give supervisors more power.

The reforms, championed by Board Chair Terra Lawson-Remer, would give supervisors a potential third term, the power to approve the hiring of top county officials and to fire them with a super majority vote. The measure would also create two positions that report to the supervisors: an auditor and budget analyst. 

Republican Supervisors Joel Anderson and Jim Desmond — who voted against the measure — protested a series of last-minute changes before Tuesday’s vote. The changes included the addition of a severability clause to shield the measure from potential legal challenges, a residency exemption for supervisors that has been removed and a plan to add the county public defender to the list of posts that could be appointed by the board.

Anderson implored Lawson-Remer to postpone Tuesday’s vote to give supervisors, the public and the county counsel more time to review the proposal.

“I want to make sure that when I vote for this it doesn’t turn into a deal down the road where people say, ‘Why in the heck did you vote for Ash Street?’” said Anderson, referencing the costly city of San Diego real estate debacle.

Lawson-Remer said board members will get to dive into the details further at a required second vote now set for May 19 and emphasized that a charter implementation committee will work out the nuts and bolts if voters approve the measure. She also expressed excitement about continuing the march toward the ballot.

“It has been an honor and a privilege to get incredible input on the charter reforms from so many community groups and leaders who individually have very different political backgrounds but collectively are for the greater good for the people who live and work in San Diego County,” Lawson-Remer wrote in a statement. 

The post Dem Supes Advance County Reform Package appeared first on Voice of San Diego.

The project, which involves an investment of about P2.57 billion based on earlier disclosures, is located south of the existing 36-MW Nabas-1 wind power facility, which has been transmitting power since 2015.

In a statement Monday, the company said it received the final certificate of approval to connect from the National Grid Corp. of the Philippines (NGCP) and is awaiting a certificate of compliance from the Energy Regulatory Commission.

“The facility’s impending commercial operation not only takes advantage of the DoE’s (Department of Energy) and NGCP’s ongoing reinforcement of the Boracay-Caticlan-Nabas transmission line where Nabas-2 is connected, but also ensures that tourism and business establishments in Boracay and Aklan get more clean power from our Nabas wind farm,” said Dave P. Gadiano, PGEC assistant vice-president for power markets.

PGEC also said it has started testing and commissioning its 25-MW solar farm in Pangasinan, which is expected to add capacity to the Luzon grid.

The solar project is part of the 111.6-MW portfolio developed and operated by Bugallon Green Energy Corp. under Rizal Green Energy Corp. (RGEC), a joint venture between PGEC and Japan’s Taisei Corp.

PGEC is the renewable energy arm of listed PetroEnergy Resources Corp., part of the Yuchengco Group, with Japan’s Kyuden International Corp. holding a 25% stake.

Once commissioning tests with the grid operator are completed, the project will operate under a fixed 20-year tariff as a qualified facility under the government’s green energy auction program.

Last month, BKS Green Energy Corp., a subsidiary of RGEC, activated its 40-MW solar power project in Isabela.

The P1.8-billion solar power plant uses 52,640 solar photovoltaic panels supplied by Chinese manufacturer Trina Solar. — Sheldeen Joy Talavera

NEW VEHICLE SALES declined by 10.4% in March as soaring pump prices dented demand for passenger cars and commercial vehicles, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA).

However, electric vehicle (EVs) sales were a bright spot, more than tripling in March and signaled a shift toward more energy-efficient transport.

In a joint CAMPI-TMA sales report published on Monday, total industry sales fell to 36,104 units in March from 40,306 units sold in the same month a year ago.

The 10.4% drop was the biggest since the 11.2% decline in vehicle sales recorded in January 2022.

Month on month, total car sales inched up by 0.7% from 35,842 units sold in February.

Including other industry data, CAMPI said total vehicle sales exceeded 39,000 units, higher than the February estimate of about 37,000 units.

Passenger car sales, which accounted for 19.18% of industry sales, dropped 18% to 6,926 units in March from 8,449 units in the same month in 2025. Car sales fell by 1.72% from 7,047 in February.

Commercial vehicle sales, which made up 80.82% of the total, slid by 8.4% to 29,178 units in March from 31,857 units a year ago. Sales of commercial vehicles edged up by 1.3% from 28,795 units in February.

Under the commercial vehicle segment, light commercial vehicle sales dropped by 9.3% to 21,552 units in March from the 23,754 units sold last year, while sales of Asian utility vehicles also fell by 6.6% to 6,594 units from 7,057 units sold last year.

Sales of light- and medium-duty trucks in March rose by 3.4% and 4.4% to 647 units and 334 units, respectively. On the other hand, sales of heavy-duty trucks slumped by 49% to 51 units in March.

In the first three months of the year, total vehicle sales decreased by 9.8% to 105,642 units from 117,074 units a year ago.

During the January-to-March period, passenger car sales dropped by 17.2% to 20,151 units, while commercial vehicle sales declined by 7.8% to 85,491 units.

The decline in March vehicle sales could be linked to the oil price surge due to the Middle East conflict, which likely dampened consumer spending, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.    

“Higher prices of fuel and other affected products have decreased consumers’ disposable income, leading to cost-cutting measures, including big-ticket items such as vehicles,” he said in a Viber message.

Pump prices in the Philippines have soared since the US and Israel attacks on Iran which have led to the closure of the Strait of Hormuz.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the drop in vehicle sales in March is mainly an affordability issue.

“High interest rates are still pushing up monthly payments, financing approvals remain tight, and households are delaying big-ticket purchases,” he said in a Viber message.

Car manufacturers are expected to roll out flexible payment terms for gas-powered vehicles to lift demand, Mr. Ravelas said.

Elevated oil prices are expected to drag vehicle sales in the coming months, Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said.

“This will be a challenging year for overall vehicle sales as fuel prices are expected to remain elevated for the next several months and perhaps going into 2027,” he said in a Viber message.

EV DEMAND
In a statement, CAMPI President Jose Maria M. Atienza said more consumers are turning to EVs as an alternative to gas-powered cars amid high oil prices.

“(EV) adoption is mainly driven by users’ growing understanding and acceptance of electrified technologies. We expect this to grow further because of the country’s need for various energy efficient vehicles,” he said.

CAMPI and TMA data showed that total EV sales surged by 224.4% in March to 6,148 units from the 1,895 units sold in the same month last year.

EV sales, which include battery EV (BEV), plug-in hybrid EV (PHEV), and hybrid EV (HEV), also more than doubled from the 3,054 sold in February.

For the first three months, EV sales jumped by 36.2% to 11,800 units from 8,664 units sold a year ago.

HEVs accounted for the bulk of sales in March, which surged by 142.8% to 3,667 units. This brought HEV sales in the first three months to 8,261 units, up 9.9% year on year.

BEV sales jumped by 400.6% to 1,787 units in March, while PHEV sales skyrocketed by 2,378.6% to 694 units.

In the first three months of the year, sales of both BEVs and PHEVs surged by 122.9% and 924.6% to 2,289 units and 1,250 units, respectively.

Mr. Atienza noted that the rising oil prices will largely influence Filipinos’ shift to EV technologies in the coming months.

“This will not only accelerate the preference for electrified vehicles but may also highlight the practicality of energy efficient vehicles like smaller and lower displacement cars. The auto industry will evolve based on the market’s requirement,” he said.

Mr. Colet said EVs are expected to take up a larger share of total vehicle sales in the coming months, as consumers shift to energy-saving vehicles.

According to CAMPI-TMA data, Toyota Motor Philippines Corp., dominated the market with a 49.15% market share, even as sales declined by 6.5% to 51,922 units as of end-March.

This was followed by Mitsubishi Motors Philippines Corp., which saw sales fall by 11.9% to 20,600 units in the three-month period.

Suzuki Phils., Inc. ranked third even as sales dropped by 9% to 4,950 units as of end-March.

Nissan Philippines, Inc. ranked fourth despite the 31.1% fall to 4,634 units sold, while Honda Cars Philippines, Inc. placed fifth as sales declined by 5.2% to 3,968 units.

At a press briefing, Ms. Garin said oil retailers should adjust prices in line with the range provided by the Department of Energy (DoE) every week amid the state of national energy emergency.

She noted President Ferdinand R. Marcos, Jr.’s declaration of a state of national energy emergency under the Executive Order (EO) No. 110 triggered the government’s power to prescribe the price of fuel products.

“The DoE, with the issuance of the EO 110 by the President, has more control over the industry. But we are not taking over any industry, any business, or taking over any operations. What we are more focused on is the price,” Ms. Garin said.

“It’s a control on the (fuel price) adjustments more than the price itself,” she added.

Mr. Marcos earlier announced a rollback in pump prices for this week, noting that diesel prices will go down by P24.94 per liter, gasoline by P3.41 per liter and kerosene by P2.

Several fuel retailers such as Shell Pilipinas Corp., Seaoil and Flying V have already announced price adjustments in line with Mr. Marcos’ announcement.

Ms. Garin said consumers have been questioning why fuel retailers were slow to roll back prices, even as global prices have dropped.

“The people’s clamor was like, ‘Why are the increases faster than the rollback?’ So, we decided to closely monitor these adjustments,” she said.

Rino E. Abad, director of DoE Oil Industry Management Bureau, said that oil companies that do not follow the fuel price adjustments could face penalties of three months to one-year imprisonment and fines ranging from P50,000 to P300,000.

Brigitte Carmel C. Lim, Top Line Business Development Corp. senior vice-president and chief operating officer, said the company does not expect any immediate disruption to operations.

“We’ll continue to monitor developments and align with DoE guidance as implementation becomes clearer,” Ms. Lim told BusinessWorld.

Meanwhile, Ms. Garin said the country’s fuel inventory can sustain demand for approximately 52.02 days as of April 17, increasing from 50.31 days last week.

“Our stocks are steady because there is steady delivery of the fuel, all sorts of fuel… (There has) been a significant drop in the consumption of fuel in the whole country,” she said.

The average inventory for gasoline is 54.47 days, while diesel has an average inventory of 50.13 days. Kerosene has an average inventory of 129.93 days; 60.69 days for jet fuel; 78.87 days for fuel oil; and 40.2 days for liquefied petroleum gas (LPG).

To boost the oil buffer stock, the Philippine government, through the state-run Philippine National Oil Co., is expecting the arrival of 320,000 barrels of diesel on April 21, which will be offloaded at the Subic terminal, according to Energy Undersecretary Alesandro O. Sales.

Another shipment carrying 330,000 barrels will arrive on April 24, but the oil will be sent to Davao, he said.

Around 21,000 metric tons of LPG are set to arrive in the Philippines next month after the government initiated an order from the US that will pass through Singapore.

In separate advisories on Monday, Petron Corp. and Solane announced a decrease of P3.36 per kilogram in LPG prices following the President’s order to temporarily suspend excise tax.

Meanwhile, Ms. Garin said the DoE is studying the recommendation to lift the moratorium on building new coal plants amid the oil crisis.

In 2020, the DoE issued a moratorium on the development of new coal-fired power plants but some proponents can still apply for non-coverage. Last year, the department issued more exceptions, such as allowing the increase in capacity of coal-fired power plants amid a power crisis.

“We are studying the expansion of that exception, but we need to study it properly because the problem is diesel and diesel is not really a major factor in terms of power generation in the Philippines,” Ms. Garin said.

At present, coal accounts for around 60% of the country’s power generation mix. The Philippines is trying to lessen its dependence on oil amid an energy transition. — Sheldeen Joy Talavera

WASHINGTON, D.C. — Several Philippine banks have flagged concerns about their capital levels, but the broader financial system remains in “very good shape” despite shocks stemming from the Middle East conflict, the Bangko Sentral ng Pilipinas (BSP) said.

In an exclusive interview with BusinessWorld, BSP Governor Eli M. Remolona, Jr. said the sector’s stable position even before the war broke out gave it ample buffers against current energy shocks.

“I think in terms of the financial system, we’re fortunate that when this energy shock happened, we were also in a good position to weather that shock. So, the banks are in very good shape,” he said on the sidelines of the International Monetary Fund and World Bank’s 2026 Spring Meetings here last week.

Mr. Remolona said Philippine banks’ capital stands at about 16% relative to their assets, exceeding the 10% international standard.

“Some banks, a few banks, are worried about their capital, but it’s not systemic,” he added.

Domestic banks have also maintained a high level of liquidity, the central bank chief noted, with about 180%. This is likewise above the 100% global benchmark.

Meanwhile, Mr. Remolona said banks’ lending activity remains “pretty strong” even as growth returned to single digit, with nonperforming loan (NPL) ratios still “reasonable.”

“The NPLs, the default rates are reasonable. They haven’t spiked up so far. So, that’s reassuring,” he said.

Latest available BSP data showed that bank lending continued to expand by a single-digit rate for a third straight month. In February, domestic lenders disbursed P14.269 trillion worth of loans, up 9.5% year on year from P13.027 trillion.

On the other hand, the banking sector’s gross NPL ratio hit a six-month high in February after climbing to 3.33% from 3.31% in the prior month but eased from the 3.38% seen a year earlier. NPLs are loans unpaid for at least 90 days after the due date and are deemed risk assets since borrowers are unlikely to pay.

Asked if the central bank is concerned about slowing loan growth, Mr. Remolona said: “(I)t’s still pretty good. We do worry about it. Our job is to worry.”

“But the situation suggests that, at least on the banking side, it’s not that worrisome,” he added.

Last week, international credit rater Moody’s Ratings said in a report that the Philippine banking system stands “well capitalized, profitable, and competently managed” despite looming risks from the ongoing Middle East conflict.

It affirmed the “Baa2/P-2” long- and short-term issuer and deposit ratings of China Banking Corp., (Chinabank), Philippine National Bank (PNB) and Security Bank Corp., and maintained its “stable” ratings outlooks for Chinabank and PNB but revised Security Bank’s to “stable” from “negative.”

Following this, Mr. Remolona vowed that the BSP will ensure sound regulations and prudent management of its international reserves as it moves to maintain financial stability amid the energy crisis.

The central bank chief also noted in his interview with BusinessWorld that the country continues to maintain an ample level of gross international reserves (GIR).

As of end-March, the Philippines’ GIR fell by 5.08% to a seven-month low of $107.512 billion from $113.264 billion last month.

Still, it stood well above the three-month global standard in terms of imports with 7.1 months’ worth. It also covers around 3.9 times the country’s short-term external debt based on residual maturity.

“So, that’s pretty good. That’s more than ample,” Mr. Remolona said.

THE Philippines’ balance of payments (BoP) deficit widened in March, driven by the elevated trade gap and heightened geopolitical uncertainty, Bangko Sentral ng Pilipinas (BSP) data showed on Monday.

The country’s BoP position stood at a $2.637-billion deficit last month, ballooning from the $1.966-billion gap in the same month in 2025 and the $2.277-billion gap in February.

March marked the fifth straight month that the country’s BoP position was in a deficit. It was the largest BoP deficit in 14 months or since the $4.078-billion gap recorded in January 2025.

This brought the three-month BoP deficit to $5.288 billion from the $2.958-billion gap a year ago.

The BoP refers to the country’s economic transactions with other nations. A surplus indicates more funds entered the country, while a deficit shows that the country spent more than it received.

“The wider BoP deficit is largely a function of a still-elevated trade gap — imports holding up on strong domestic demand — now compounded by higher oil prices and tighter global liquidity,” said Robert Dan J. Roces, group economist at SM Investments Corp. (SMIC), in a Viber message.

“Elevated US rates are dampening portfolio inflows, while geopolitical risks are pushing up the import bill and risk premia,” he added.

Preliminary data from the Philippine Statistics Authority (PSA) showed that the trade-in-goods deficit widened to $3.68 billion in February from $2.99 billion a year earlier. The PSA is scheduled to release March trade data on May 30.

Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes said the BoP deficit widened because the country is paying more for imports, especially oil, while export and investment inflows are not growing fast enough.

“Global factors are mutually reinforcing. Oil prices widen the trade deficit. US rates reduce capital inflows. Geopolitics amplify both. Global slowdown weakens exports,” he said in a Facebook Messenger chat.

“So, when these factors move in the same direction, they create a compounded effect, making the BoP deficit widen more sharply than any single factor would cause on its own,” he added.

Rising oil prices and dwindling fuel reserves pushed the government to announce a one-year state of national energy emergency and suspend excise taxes on kerosene and liquefied petroleum gas.

SMIC’s Mr. Roces said the BoP position is highly unlikely to return to a surplus this year.

“The more realistic path is a narrower but manageable deficit, with improvement hinging on lower oil prices, easing global rates, and steady inflows from remittances, business process outsourcing, and foreign direct investments,” he said.

“Importantly, a deficit at this stage is not a red flag — it reflects an economy investing and expanding, with import demand tied to growth and capacity-building and remains sustainable as long as core inflows and reserves stay intact,” he added.

Mr. Peña-Reyes said that it is possible to see the BoP position to swing to a surplus, but it is not the base case.

“Most official and market forecasts still point to a small BoP deficit in 2026, though with scope for improvement versus 2025 rather than a clean return to surplus,” he said.

“All told, the expected path is a narrowing deficit, not a full swing back into surplus,” he added.

For this year, the central bank expects the BoP position to end at a deficit of $7.8 billion or -1.5% of the country’s gross domestic product.

Last year, the BoP deficit stood at $5.661 billion, a reversal of the $609-million surplus recorded in 2024.

RESERVES
Meanwhile, the Philippines’ gross international reserves (GIR) declined to $106.6 billion as of end-March from $107.51 billion reported earlier by the central bank. It was also lower than the $113.26-billion GIR at the end of February.

“This level of reserves remains an adequate external liquidity buffer, equivalent to 7.0 months’ worth of imports of goods and payments of services and primary income,” the BSP said.

It also covers around 3.9 times the country’s short-term external debt based on residual maturity, it added.

GIR comprises foreign-denominated securities, foreign exchange, and other assets such as gold. It enables a country to finance imports and foreign debts, maintain the stability of its currency, and safeguard itself against global economic disruptions.

The BSP projects the Philippines’ dollar reserves to hit $111 billion by yearend.

Tomorrow, County Board Chair Terra Lawson-Remer will ask fellow board members to advance a ballot measure to shift county governance to hand supervisors more power.

Bureaucrats have long wielded more power in county government than they do at City Hall – and Lawson-Remer’s proposal seeks to shift the balance of power.

Among the proposed changes: board votes on high-level county hires, a third term for supervisors and new auditing and budget review officials that report to supervisors.

Our Lisa Halverstadt delivered a rundown of Lawson-Remer’s proposals – and both arguments for and against them, including a couple beefs from a prominent supporter the supervisor wants to lead efforts to implement the changes.

You can read the full story here.

More Politics: Our editors explained just how big of a deal the reforms could be for county operations. They also got the results of a poll that asked voters if they would support the reforms. Read more in the Politics Report here.

Also On County Supes’ Tuesday Menu

The charter measure isn’t the only big item on the Board of Supervisors’ Tuesday agenda.

The board will also consider Supervisor Joel Anderson’s proposals to set guardrails for county-funded polling and increase transparency surrounding board subcommittees that have largely been meeting in secret. Halverstadt previewed Anderson’s polling and subcommittee proposals.

Also on the agenda:

• Lawson-Remer and Supervisor Paloma Aguirre are proposing an agreement with the Mexican Consulate to help fund legal representation to Mexican nationals under the county’s Immigrant Legal Defense Program.
• Anderson wants to standardize the county’s process for responding to Public Records Act requests to minimize delays in releasing records and differing timelines that can now vary by county department. Voice recently wrote about repeated county delays and attempts to avoid releasing records after formal requests.
• Lawson-Remer and Anderson want to reallocate funds previously directed toward public-private partnerships to provide sleeping cabins for homeless residents to expand a diversion program to move people out of homelessness. We wrote about how diversion works last year. 

Sacramento Report: Dems Bummed About Bummer Gov Race

President Donald Trump’s historic unpopularity has fueled excitement of a midterm blue wave among Democratic politicos nationwide. But to local voters, the shambolic race to replace Governor Gavin Newsom is a stone-cold bummer. 

The contest was shaping up to be a potential nightmare scenario for California liberals. A nearly endless list of Democratic candidates fractured voters, giving rise to the possibility of the unthinkable: two Republicans clinching the top two primary spots and advancing to the general, potentially shutting out Democrats from the race. 

The rapid resignation and dropping out of frontrunner U.S. Rep. Eric Swalwell after allegations surfaced that he’d sexually assaulted multiple women reshaped the race. His withdrawal may give one of the other two frontrunners – billionaire Tom Steyer and former Congressmember Katie Porter – enough juice to squeak by Republicans. That should be good news for liberal voters, right? Not exactly.

Sacramento reporter Nadia Lathan spoke to multiple voters whose mood can best be described as “disheartened.” The sense that Dems have dropped the ball on governing America’s largest state looms heavy on their minds and is fueling a frustration with politics in general.

“I’m tired of being deceived. I’m not happy with any political party right now. I think people really need to make them accountable,” Becky Fredrickson, an independent who usually votes blue, told Lathan.

You can read the whole story here.

VOSD Podcast: Broken Promises

Speaking of the Governor’s race…on this week’s podcast, our hosts dug into the messy politics surrounding the contest and bravely asked the question – “Is something wrong with people who have the audacity and self-assuredness to think they should be California’s top dog?” Probably.

They also reviewed a couple of stories decades in the making. The first is about the city’s promise to build a fire station in southeastern San Diego. Eleven years later, firefighters are still working in a temporary tent. The other is about San Diego Unified’s promise to replace the plumbing at a southeastern San Diego middle school, which they’d included as a selling point in three successive bond measures. Fourteen years later, and that school is still springing leaks.

Pretty disheartening. Hey, I’m sensing a theme here. 

Listen to the podcast here.

In Other News 

• Reporting suggests the Padres are getting close to a sale of the franchise to billionaire hedge fund manager Jose Feliciano and his wife. Padres Nation the world over is now trying to read the leaves to figure out what this means. One thing seems pretty sure – it’ll cost them a pretty penny. Nearly $4 billion to be exact. (Union-Tribune)
• A defense attorney who specialized in representing cops accused of misconduct has been appointed to a San Diego Superior Court seat. (union-Tribune)
• A new 200-page study has found that replacing SDG&E with a publicly owned utility could save customers about $500 year. SDG&E, however, says it significantly underestimates the costs. (Union-Tribune)
• The boards of MTS & NCTD voted to increase fares up to 40 percent to stave off cuts to service as the systems grapple with massive deficits. If approved by SANDAG, the hikes will be the first in nearly 20 years. (City News Service)

The Morning Report was written by Lisa Halverstadt and Jakob McWhinney. It was edited by Andrea Sanchez-Villafaña.

The post Morning Report: The Pitch to Reshape County Governance appeared first on Voice of San Diego.

The Del Mar Fairgrounds just got hit with another lawsuit. 

Brad Oates is suing the Del Mar Fairgrounds and the 22nd District Agricultural Association for age discrimination, wrongful termination and rest and meal break violations, according to a complaint filed on April 16. 

The timing is conspicuous.  

Just two days earlier, the Board of Directors that oversees the Fairgrounds abruptly fired CEO Carlene Moore without explanation. Moore is named throughout the new complaint – as well as another relatively recent lawsuit. But it’s unclear if either lawsuit is related to Moore’s termination. A spokesperson for the Fairgrounds declined to comment. 

The Complaint 

Oates worked as a seasonal carpenter at the Del Mar Fairgrounds for about 10 years, starting around April 2014, the complaint says. 

In January 2024, the Fairgrounds had a permanent carpenter position open, so Oates applied for it. He was in good standing with his supervisors and never received any warnings or disciplinary actions in the entire decade that he had been working at the Fairgrounds, according to the complaint. 

The application process included a written competency score, which he scored 95 out of 100 on. And two of his supervisors supported hiring Oates for the role.  

However, former CEO Moore, rejected his application, overruling the other two supervisors. She allegedly told the two supervisors that Oates was “too old” for the permanent carpenter position, the complaint says. At the time, Oates was 66 years old. 

Instead, Moore hired her nephew for the position, according to the complaint. Moore then assigned Oates to train her nephew in the new permanent carpenter role. Around October 2024, Oates “was removed from his seasonal carpenter position entirely,” the complaint says. 

Oates also alleges in the complaint that he often did not receive his legally required 10-minute rest breaks, and that his meal breaks were frequently interrupted or cut short.

Moore could not be reached for comment. 

This Isn’t the First Time 

Last year, former fairgrounds executive Melinda Carmichael also sued the Del Mar Fairgrounds and the 22nd DAA alleging retaliation and a toxic work environment. 

Moore was also at the center of that complaint. 

In her 2025 complaint, Carmichael stated that, starting in 2022, she repeatedly raised concerns of alleged illegal conduct, racist remarks and other actions by a former human resources director. But Carmichael began to face retaliation for her complaints from Moore, she claims.  

Moore allegedly stripped Carmichael of her job responsibilities and resources, excluded her from meetings and planning and eventually terminated Carmichael’s position of chief executive administrator, forcing Carmichael to return to her previous position as a staff services manager. 

Carmichael has largely been on disability leave since October 2024, according to a report by the Coast News, and the lawsuit is ongoing. 

In 2021, the Fairgrounds and 22nd DAA faced a lawsuit from carnival operator Talley Amusements, which alleged that Moore and Fairgrounds officials rigged a contract process to ensure that a different carnival operator would get the exclusive rights to run the games and rides at the County Fair. 

That lawsuit eventually settled in court with the Del Mar Fairgrounds having to pay $500,000 to Talley Amusements. 

Moore joined the 22nd DAA as deputy general manager in February 2019 after nine years as CEO of the Napa County Fairgrounds in Calistoga. She became the interim CEO after longtime fairgrounds manager and CEO Timothy Fennell retired in 2020, and then later, she was appointed CEO. 

News of her termination came last Tuesday after a closed session 22nd DAA board meeting where board members voted 8-1 to fire Moore as CEO. So far, the Fairgrounds has declined to comment on the reason for Moore’s termination. Board Chair Sam Nejabat was named as the temporary interim CEO. The board said at the time that it plans to re-evaluate the interim position in 10 days, an official told the Union-Tribune.

The post Del Mar Fairgrounds Hit with Another Lawsuit Involving Former CEO appeared first on Voice of San Diego.

Mexican President Claudia Sheinbaum has called on consulate staff to increase their oversight of U.S. detention facilities in response to the increasing number of Mexican citizens who have died in custody since President Donald Trump came back into office.

At least 17 people have died in the custody of U.S. Immigration and Customs Enforcement so far in 2026 and 50 in total during the Trump administration, according to information ICE has released. At least 14 people who have died so far during the Trump administration were from Mexico, according to ICE.

In an announcement last week, Mexico’s Foreign Ministry said Sheinbaum had instructed it to intensify efforts to monitor conditions for Mexican citizens in U.S. custody, including through daily visits to detention sites.

“The government of Mexico will continue to pursue all available legal and diplomatic avenues regarding this issue, and reiterates its firm commitment to protecting the rights and dignity of all Mexican nationals abroad, regardless of their immigration status,” the ministry said in a press release.

Ambassador Alicia G. Kerber-Palma said that San Diego consulate staff in the Department of Protection have already been visiting immigration detention facilities daily, including Otay Mesa Detention Center. She said staff also visit the ICE holding area in the basement of the Edward J. Schwartz Federal Building and Border Patrol stations on a daily basis and that they also visit the local jails and prisons several times per week.

“It’s to verify the physical state and health of the Mexican people who are detained, make sure their human rights are respected and give them support in their migration situation,” Kerber said.

Under the 1963 Vienna Convention on Consular Relations, countries are required to notify consulate staff if a citizen of their country is taken into custody or imprisoned “without delay.” Consular staff have a right to visit those detained citizens, under the convention, unless the people detained say they do not want to talk to the consulate.

Kerber said that not everyone detained at Otay Mesa agrees to meet with consulate staff. She estimated that every day, staff conduct between 40 and 50 interviews at Border Patrol stations, and six to 10 interviews in ICE detention.

She said consular staff have a detailed questionnaire to monitor how Mexican citizens are treated and that if someone has a medical condition that isn’t receiving treatment, her staff will communicate with U.S. government officials to advocate for the person to get care.

When I asked her about what she’s heard about conditions inside, she avoided answering directly, true to her diplomatic role.

“We work to establish those bridges of communication to benefit our conationals,” Kerber said. “It’s not a situation of confrontation. If there’s no confrontation, there’s no dialogue, and without dialogue, it’s difficult to defend our conationals. When we find out things, we let migration authorities know.”

But, she did admit that she worries about the people in custody.

“I think the whole consular network is worried about the situation of our conationals,” Kerber said. “They’re not numbers. They’re human beings. They’re our fellow Mexicans. They’re our countrymen and countrywomen.” 

“This is our most vulnerable community,” she added. “It worries us what could happen, and because of that, we strengthen the communication and dialogue with North American officials.”

Mostly, Mexican citizens ask her staff to explain what’s happening in their immigration process in the United States and what will happen to them if and when they’re deported, Kerber said. They also ask the consulate for help in maintaining contact with their family members, she said. Staff can help people deported from immigration custody get their belongings back.

The consulate also evaluates, on a case by case basis, requests for financial assistance from families left behind, she said. 

She said roughly 80 percent of people her staff interview have families in the United States. They have been living here on average for nearly a decade.

She said most people that her staff interview already have immigration lawyers — which she believes is a credit to Know Your Rights campaigns that help people prepare for the possibility of an immigration arrest — and that the consulate will help find attorneys for people who have legitimate cases to stay.

Consulate staff have taken tours of the detention facilities to ensure that signs informing detainees about their rights to speak with consulate staff are posted and that detainees can easily call consular numbers via the phones, she said.

Thank you for reading. I’m open for tips, suggestions and feedback on Instagram @katemorrisseyjournalist and on Bluesky @bgirledukate.

In Other News

Sacred land: Joaquín Patiño reported for El País that blasts to build border wall in Tecate are destroying sacred Kumiai land.

Fast pass: San Diego college students living in Tijuana can now apply for fast passes to access an expedited lane through a pilot program with Customs and Border Protection, Alexandra Mendoza reported for The San Diego Union-Tribune.

More flights: Deportation flights from San Diego have increased under the Trump administration, including leaving from Marine Corps Air Station Miramar, Gustavo Solis reported for KPBS.

Delayed renewals: Delays in renewing work permits for people who have temporary protection from deportation because they came to the United States as children have meant many are having to stop working while they wait, Shelby Bremer reported for NBC7.

The post Border Report: Deaths Prompt Detention Center Inspections appeared first on Voice of San Diego.

The ex-finance chief at the center of a criminal debacle involving a former county contractor is facing three new felony charges, including for allegedly forging a $105,000 invoice to the county. 

Ex-Harm Reduction Coalition Chief Operating Officer Amy Knox, who appeared in Superior Court early Monday after being released from jail after a family member posted bail late last week, has pleaded not guilty to all the charges. 

The three new allegations from District Attorney Summer Stephan’s office involve fraudulent tax returns, two stolen trips that were meant to be auctioned off to support an addiction recovery nonprofit that Knox until recently helped lead and a falsified invoice that the county paid out. 

The charges come two months after Knox was initially accused of six felony misappropriation charges for spending public money on everything from plastic surgery to purebred dogs. The case has spawned a slew of questions about the county’s oversight of two contracts held by the small nonprofit to distribute an overdose reversal drug and check illicit drugs for deadly fentanyl. 

Attorney David Silldorf, who is representing Knox, declined to comment on the new charges but cheered Superior Court Judge David Berry’s Friday decision to grant the former nonprofit executive’s release. 

“We are pleased to have secured what we see as the first — among what we hope to be many more — wins for our client,” Silldorf wrote in an email. “To be sure, this is a big deal for Ms. Knox who has been in custody since February.” 

Deputy District Attorney Matthew Dix argued against Knox’s release on Friday, noting that new charges bring Knox’s alleged financial crimes to more than $400,000 in total losses.  

Because Knox was not at the Friday hearing, Berry opted to focus on her proposed release and whether Knox’s attorneys could prove her $500,000 bail was met without the use of potentially feloniously obtained funds – rather than the additional charges.  

Knox was released from county jail on Friday, more than two months after she was booked. 

She appeared in court for a second arraignment early Monday beside two new attorneys and spoke softly in response to the judge’s questions. 

During the hearing, Dix detailed the new charges and Knox’s criminal history as he argued for strict release conditions. 

The prosecutor noted that Knox was previously sentenced to four years in state prison for embezzling more than $500,000 from a family member’s business and said Knox’s aunt reports she has paid little of the $650,000 in restitution her family is owed. 

Now, as the District Attorney’s Office investigation continues, Dix said his team is uncovering new alleged crimes. 

In one instance, Dix said, Knox forged an invoice for fentanyl test strips, fraudulently reporting purchases to the county that she claimed totaled $105,000, which the county paid out. 

County spokesperson Tammy Glenn said could not elaborate on an ongoing prosecution but that the county “continues to coordinate with the District Attorney’s office investigation.”   

Glenn also noted that the county encourages county staff, contractors and others to report concerns about waste, fraud or abuse to the county’s Ethics Hotline or the district attorney’s public integrity unit. 

Dix alleged that Knox also submitted fraudulent tax forms for herself and her husband, evading taxes they owed. 

Knox, who until recently served as board president of the Crossroads Foundation, also stands accused of taking two trips to Montana that she had secured to be auctioned off at the county residential treatment contractor’s annual Pasta & Jazz fundraiser for herself.  

“Instead of putting them on the auction block, she took them herself,” Dix said. 

In a statement, the Crossroads Foundation wrote that an external auditor pointed to an invoice that Knox had submitted listing vacations to be auctioned off during the group’s 2024 fundraiser.  

“After a deeper review, it was discovered that only one trip listed in the agreement was promoted and auctioned at the event. Knox, however, reported to the distributor that three trips had been sold, listing two family members as donor recipients,” Crossroads spokesperson Candice Reed wrote in a statement.  “This impropriety was reported to the authorities right away. We are fully cooperating with the District Attorney’s Office on this matter and will continue to do so.” 

Reed also said that the nonprofit is working closely with the county’s behavioral health department to ensure it meets “all contract and auditing requirements” and that it remains confident in financial protocols that uncovered the issue. 

“Our primary focus remains on our important mission and the women we serve,” Reed wrote. 

After Knox pleaded not guilty to the new charges on Monday, Dix argued Knox could continue to commit crimes absent strict release conditions.  

In recorded jail calls, he said Knox said her husband could run the business they once ran together but that she’d direct him on what to do upon release. Dix also noted a situation he’s trying to piece together involving $450,000 in unaccounted for funds tied to a New Mexico contract brokered by Knox’s company. 

“She’s just such a risk to the community for financial detriment,” Dix said. 

Judge Berry ultimately agreed to bar Knox from operating any businesses, using electronic devices and knowingly possessing stolen property, fake invoices or others’ identification information. Berry also ordered Knox to hand off her U.S. passport to her attorneys and noted she’d be subject to potential searches by law enforcement without a warrant or probable cause. 

Gary Gibson, another attorney for Knox, agreed to those conditions. 

“Those conditions as stated would be acceptable,” Gibson said. “The question is, where’s the line between earning a living and following the court’s conditions?” 

Berry said Knox can work but not run a business. 

“I believe we worked out reasonable conditions,” said Berry, noting that prosecutors will be watching closely for potential violations. 

Knox is set to appear in court again in June. 

The post Ex-COO for County Contractor Faces More Charges appeared first on Voice of San Diego.

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IF YOU THINK color analysis, as popularized on social media, just means draping cloths to determine which color looks good on you, then you’ve got to talk to Carla Pamela Florin, president and chief executive officer of The Lookbook Style Studio.

Ms. Florin was a guest lecturer at the Korean Cultural Center’s K-Beauty Week at its Taguig site. The event runs from April 15 to 23. During her class, she explained what goes on into color analysis and how it helps everyday life.

For example, it’s not just a matter of vanity. She said that it saves time and energy: “When you go shopping, you just go directly to that specific color,” she said, eliminating trial and error.

Colors are grouped according to season: Spring and Autumn are warm; Summer and Winter depend on cool tones. How they interact with your skin depends on one’s undertone: more pinkish undertones mean one has a cooler palette while more yellowish undertones mean a warmer palette. The skin’s surface is affected by things like sun exposure and genetics. Contrary to popular belief, many Filipinos, despite what seems to be a uniformly brownish tone, lean more towards cooler palettes due to pink undertones. “It’s actually based on your blood,” she says about the science of it. More hemoglobin in your blood gives you a pink undertone, while more carotene in your body gives the yellow tones.

During her demo, she showed with a volunteer what goes on in a class. Despite the numerous white lights on the model, she says that during consultations, they depend more on natural light. They can’t use yellow light as it gives a person a deceptive warm glow, while they need to control the brightness of the white light because it will then make a person look too pale.

She works with the Korean color system, which she says differs from the Western system. The Korean system is based more on lightness, or color value, due to the nature of East Asian pale skin. The Western system depends on the color’s saturation, due to the diversity of hair, eye, and skin color present in the West.

Lighting is a factor as well (just look at how sunlight differs here and in other countries). That’s why she’s planning to develop a more Filipino-centric color analysis course. “We have a different concept of beauty here in the Philippines. We have a different climate. And our average color is different,” she said in a mixture of English and Filipino. “I think it would be more into saturation as well. We’re medium-colored.

“We’re also researching what are the usual colors from our local brands,” she says, the better to fit this Filipino-centric color analysis, should it come to fruition. For this she uses her background as a sales analyst. She went into personal image consultancy and color analysis (earning her certifications from Malaysia, Japan, and Korea) as a second chapter after retirement (while being helped by her daughters: one an interior designer and the other in business).

One assumes a large celebrity clientele (which is true), but many of her clients come from the professional class: doctors, lawyers, accountants. One such doctor, an oncologist, asked for her advice. “She wears dark colors. She felt that it’s more professional.” After figuring out that she looked good in cooler, paler summer tones, she concluded with the doctor: “It also helps how your patients see you. It’s not going to be so dark,” since the doctor’s work in cancer was very serious.

Of course, we don’t have to follow what color analysts say — clothing is a way to express ourselves in the world, and a specific color palette might disrupt that. “At the end of the day, it still boils down to your preference and what you want.”

Visit https://lookbookstylestudio.com/ for more information. — Joseph L. Garcia

THE DEPARTMENT of Trade and Industry (DTI) is looking to finalize the text for the Philippines’ free trade agreement (FTA) with Canada by its third round of negotiations in July.

Trade Undersecretary Allan B. Gepty told BusinessWorld via Viber that the recently concluded second round of FTA talks was “very productive,” and “[has] achieved substantial progress in almost all the text-based negotiations.”

He said the Philippines and Canada are on track to finish FTA talks within the year.

“We have two more rounds, and we hope to stabilize the text by the third round in July. In the meantime, we will continue with intersessional work as well as consultations,” Mr. Gepty said.

The July round of FTA talks will be held in Ottawa, he noted.

An FTA with Canada, which is set to be the Philippines’ first trade deal in North America, is anchored on the two countries’ aim to diversify their respective export markets.   

“For Canada, it broadened its trade partnerships, particularly in the Indo-Pacific region, especially that we are also negotiating the ASEAN (Association of Southeast Asian Nations)-Canada FTA,” Mr. Gepty said.

The DTI earlier said that the Philippines is expected to finish FTA negotiations with Canada ahead of the ASEAN-Canada Free Trade Agreement (ACAFTA) this year.

The ACAFTA is one of the priority economic deliverables of the Philippines as chairman of the ASEAN this year.

A trade deal between the Philippines and Canada comes amid global trade uncertainties that have prompted countries to expand market access and reduce trade barriers.

For the Philippines, the trade pact presents opportunities to access high-value markets like Canada, Mr. Gepty said.

He noted that the country’s young workforce, strong macroeconomic fundamentals, and strategic location align with Canada’s push to diversify its trade partners.

“The Philippines stands not only as a trading partner, but as a strategic gateway, an economy with strong growth fundamentals, a dynamic workforce, and an advantage position within ASEAN,” Mr. Gepty said.

“This presents also a clear opportunity to embed the country within Canada’s diversification framework, and to secure a more stable and expanded access to a high-value market,” he added.

Trade Undersecretary Ceferino S. Rodolfo earlier said the FTA would help the Philippines secure wider access to the Canada-United States-Mexico Agreement. Likewise, Canada would benefit from the Philippines’ proximity to the ASEAN and regional neighbors like South Korea and China.

The trade deal would also help Philippines promote key sectors like mining and mineral processing, digital infrastructure, tourism, and high-value manufacturing with Canadian investors, the DTI noted.

“The Philippines views its relationship with Canada not merely as a bilateral engagement but as a forward-looking alliance anchored in resilience, diversification strategy, and shared values especially commitment to a rules-based system,” Mr. Gepty said.

As of end-February, Philippine exports to Canada inched up by 0.7% to $100.39 million, while imports grew by 0.5% to $112.59 million, data from the Philippine Statistics Authority showed.

Commonly traded products between the Philippines and Canada include agri-food and seafood products like wheat, pork meat, and pork products, as well as electronic goods like integrated circuits and electrical transformers.

Data from the Global Affairs Canada (GAC) showed that Canada-Philippines bilateral merchandise trade reached C$3.2 billion in 2024.

Canada’s stock in direct investments in the Philippines stood at C$844 million in 2024, GAC data showed.

THE NATIONAL Government’s (NG) debt service bill surged more than sixfold in February, mainly due to a massive increase in domestic amortization, data from the Bureau of the Treasury (BTr) showed.

Debt payments jumped by 725.7% to P430.64 billion in February from the P52.15 billion recorded a year earlier.

Month on month, debt service went up by 212.8% from P137.67 billion in January.

Debt service refers to payments made by the NG on its domestic and foreign debt.

In February, the government’s repayment of its loan principal or amortization accounted for the bulk or 88.6% of total debt service, while the rest went to interest payments.

Principal payments sharply increased by 10,191.5% to P381.71 billion in February from P3.71 billion a year ago.

This was mainly due to the surge in amortization on domestic debt to P378.51 billion in February from just P121 million in the same month in 2025.

“Domestic amortization reflects actual principal repayments to creditors, including those serviced by the BSF (Bond Sinking Fund),” the Treasury said.

External principal payments, on the other hand, declined by 10.8% to P3.2 billion in February from P3.59 billion in the same month last year.

Meanwhile, interest payments inched up by 1% to P48.93 billion in February from P48.45 billion in the same month a year earlier.

Domestic interest payments fell by 11.9% to P37.08 billion in February from P42.07 billion a year ago. Broken down, P19.78 billion went to interest payments for fixed-rate Treasury bonds, P11.95 billion for retail Treasury bonds, and P4.63 billion for Treasury bills.

Interest payments on external debt jumped by 85.8% to P11.85 billion in February from P6.38 billion a year ago.

For the first two months of 2025, the government’s debt service surged by over three times or 258.2% to P568.31 billion from P158.66 billion in the same period last year.

Amortization payments for the January-to-February period jumped by 6,669.8% to P391.57 billion from P5.78 billion a year ago.

Principal payments accounted for 68.9% of the total debt payments in the first two months of 2026.

Principal payments on domestic debt went up by 88,166.4% to P386.61 billion from P438 million, while those for external debt slipped by 7.3% to P4.96 billion from P5.34 billion.

On the other hand, interest payments rose by 15.6% to P176.75 billion as of end-February from P152.88 billion in the same period a year ago.

Interest payments on domestic debt jumped by 15.2% to P131.68 billion from P114.35 billion, while external debt payments went up by 17% to P45.06 billion from P38.53 billion.

“(The increase is) largely due to lump-sum and timing-related payments, particularly large maturities or scheduled principal repayments falling within the month,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

“Debt service figures tend to be volatile and should be interpreted in the context of the overall annual financing program,” he added.

In the Budget of Expenditures and Sources of Financing 2026, the government has set a P2-trillion debt service program for the year, of which P1.05 trillion is for principal payments and P950 billion is for interest payments.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said that the surge is largely due to the P232-billion 7-year Treasury bond that matured on Feb. 14.

“Furthermore, the higher US dollar-peso exchange rate led to higher debt servicing in pesos of US dollars and other foreign currency-denominated debts, both principal and interest payments,” he said in a Viber message.

Mr. Ricafort said wider budget deficits, which are partly due to higher prices that have inflated government expenditures in recent years, also contributed to increased debt servicing costs over time.

The National Government’s budget deficit inched down by 0.14% to P171.2 billion in February from P171.4 billion in the same month a year ago.

Inflation rose 2.4% in February, the quickest pace since 2.9% in January 2025.

For the coming months, Mr. Ricafort said that the NG debt service bill could go up amid the maturity of a P282-billion 5-year Treasury bond by April 8.

“Higher US dollar-peso exchange rate, higher prices that could bloat the budget deficit, and higher interest rates since the war in the Middle East started on Feb. 28 could lead to higher debt servicing costs, both principal and interest payments, going forward,” he added.

Mr. Rivera said debt payments are expected to remain “elevated but manageable.”

“While higher global interest rates may keep debt servicing costs up, the key is that these are planned obligations, and the government is likely to continue managing them through a mix of domestic and external borrowing and prudent debt strategy,” he added.

WASHINGTON, D.C. — The Philippines could regain its economic momentum later this year or by early 2027 if the energy shocks prove temporary and the local investment climate improves, the International Monetary Fund (IMF) said.

In an exclusive interview with BusinessWorld, Krishna Srinivasan, director for Asia-Pacific Department at the IMF, said easing external pressures from the Middle East conflict and recovering domestic demand, particularly investments, could bring the country’s growth to 5.8% in 2027.

“So, the assumption there would be that if the shock is temporary, then things normalize and the Philippines goes back to a pickup in domestic demand and external demand,” he said on the sidelines of the IMF and World Bank’s Spring Meetings last week.

“If the shock dissipates, you could see the momentum starting later this year and beginning of next year,” he added.

The multilateral lender’s Philippine growth outlook for 2027 is significantly faster than its downgraded 4.1% estimate for this year and the 4.4% output recorded last year.

Still, Mr. Srinivasan noted that the Philippines may be worse off if the conflict intensifies, or in which energy price increases are higher and more persistent as well as if energy infrastructure takes more hits.

“I think the risk, all the numbers I’m quoting are from the reference scenario, which assumes that the shock is temporary. It’s a transient shock. It doesn’t last for that long. It dissipates very quickly,” he said.

“Now, if that doesn’t happen, right, then we have two scenarios in the WEO (World Economic Outlook) where we talked about the fact that growth could come down by one to two percentage points in Asia. And that, if you do the numbers of (the) Philippines, I think it would be much more significant,” he added.

For this year, lingering governance woes from the flood control corruption scandal in late 2025 and potential supply shocks from impending natural disasters are also clouding the growth outlook for the Philippines.

A widescale controversy linking Public Works officials, lawmakers and private contractors to corruption behind the government’s flood control projects stalled investments, public spending, and household consumption. This dragged the economy last year to its weakest growth since the pandemic.

Meanwhile, Mr. Srinivasan said a quick resolution to the war would also put the Association of Southeast Asian Nations (ASEAN) in a good position.

Efforts to boost domestic demand and a pickup in investments once uncertainties over the Middle East war fade could push the region’s gross domestic product (GDP) growth up next year, he added.

In its latest WEO report, the IMF said it sees ASEAN-5, comprised of Indonesia, Malaysia, the Philippines, Singapore and Thailand, expanding by 4.1% this year before improving to 4.4% next year.

“For ASEAN, this is a highly integrated region,” Mr. Srinivasan said. “So, if the external shocks subside, then you will see a fillip from external demand. And also in many regions where they are trying to boost domestic demand, that will start kicking in, whether it’s consumption or investment.”

“If the uncertainty in the world dissipates, you would expect investment to pick up, both to service domestic demand and to service external demand,” he added.

FURTHER INTEGRATION
The Philippines took the helm of ASEAN this year, a position Mr. Srinivasan said gives the country an opportunity to advance regional integration as it shares similar economic woes with its neighbors.

He noted that better integration would help cushion the region against external shocks.

“If ASEAN integrates more, it’s that much more of a buffer against external shocks. So, you know, you could have the demand coming from just within Asia that provides a fillip for investment and consumption,” he said.

Mr. Srinivasan said ASEAN could use this time to strengthen intra-regional trade, financial integration, and digitalization.

“ASEAN can talk about the fact that at a time when the region has been subject to… trade shocks (and) trade tensions, trade within the region can be a good buffer,” he said. “So, the Philippine (chairmanship) of the ASEAN could make that point even more vigorously, (and) to facilitate greater financial integration, greater digitalization. All that could help promote greater integration and greater trade within the region.”

The 11-member regional bloc should also enhance its domestic revenue mobilization, which the IMF’s APAC chief noted remains low in terms of its share to GDP, to build resilience against external shocks.

“If you look at countries in the ASEAN, their intake of revenues as a share of GDP is on the lower side, right? And so that is also an area where ASEAN as a group can do better, right, to make themselves more resilient to shocks,” he said.

The Philippines may also push for better use of the region’s services sector, he added.

Meanwhile, Mr. Srinivasan noted that ASEAN+3’s move to reinforce its regional crisis financing initiative comes timely amid the growing need for stronger trade and financial integration.

He said improving regional integration will also allow the Chiang Mai Initiative Multilateralization (CMIM) to gain more support than in the past.

“Only 20% of (ASEAN’s) trade is accounted for intra-regional trade,” Mr. Srinivasan said. “So, there is an impetus towards strengthening both trade integration and financial integration, right? And part of that is to see what kind of support you can provide to countries when they are subject to shocks.”

“And that’s where the CMIM is an important thing. It complements other aspects of the global safety net,” he added.

Philippine central bank Governor Eli M. Remolona, Jr. earlier said ASEAN leaders are expanding and strengthening the CMIM a multilateral currency swap arrangement within the region, to serve as their safety net amid the crisis.

The CMIM was established by the ASEAN member countries with China, Japan and South Korea following the 1997 Asian Financial Crisis to address crisis-driven liquidity concerns in the region.

A BusinessWorld poll conducted last week showed that 11 out of 19 analysts expect the Monetary Board to hike the target reverse repurchase rate by 25 basis points (bps) at its policy meeting on April 23.

If realized, this would bring the benchmark rate to 4.5% from the current 4.25%, marking the BSP’s first tightening move in over two years or since October 2023. 

On the other hand, eight analysts said the BSP will likely hold its key rate steady, citing supply-driven inflation risks and weaker growth prospects.

Since starting its easing cycle in August 2024, the central bank has slashed the benchmark policy rate by a total of 225 bps to an over three-year low of 4.25%. It also kept borrowing costs steady in an off-cycle meeting last month to calm markets amid growing uncertainties stemming from the war.

Most analysts said the Monetary Board will likely raise rates on Thursday as a preemptive move to anchor inflation expectations, with inflation seen breaching the 2-4% target if energy prices remain elevated.

“A 25-bp hike would allow the BSP to reaffirm its commitment to price stability, even as it keeps a calibrated and data-dependent stance going forward,” Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said.

Metropolitan Bank & Trust Co. (Metrobank) Chief Economist Nicholas Antonio T. Mapa said in a Viber message that monetary tightening will help “corral inflation expectations that may be fraying due to surging energy costs and subsequent pickup in prices due to second-order effects.”

BSP Governor Eli M. Remolona, Jr. last week told BusinessWorld that they have room to raise rates to temper rising inflation amid the Middle East conflict as they expect government spending to support growth.

Mr. Remolona noted that second-round effects may emerge sooner than expected as the global oil price shock is expected to spill over into domestic food and transport costs. 

In March, elevated oil prices due to the war drove inflation to a near two-year high of 4.1%, faster than the BSP’s 3.1%-3.9% forecast and 2%-4% target for the year.

“While current pressures remain largely supply-driven, historical experience suggests prolonged shocks tend to spill over into demand-side dynamics, increasing the risk of de-anchored inflation expectations,” Bank of the Philippine Islands (BPI) Lead Economist Emilio S. Neri, Jr. said in a report.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted in a Viber message the BSP had raised borrowing costs in 2022 when Russia’s invasion of Ukraine led to global crude oil prices breaching $100-per-barrel levels.

“There is a possibility of BSP rate hike, similar to the previous cycle four years ago in an effort to curb inflationary pressures at the bud and better manage inflation and prevent it from spiraling further, in an effort to bring back inflation to the inflation target range of 2%-4%, even if the unintended consequences include slowing down the economy,” Mr. Ricafort said.

Marco Antonio C. Agonia, an economist and analyst at the University of Asia and the Pacific (UA&P), said in an e-mail that the move on Thursday will be a one-off hike, with the BSP standing pat for the rest of the year.

“Given the softer growth outlook, further rate hikes may be too damaging for economic performance,” Mr. Agonia said.

Mr. Agonia noted a rate hike will also provide peso relief without using too many reserves.

Since the US and Israel began attacks on Iran on Feb. 28, the peso has weakened to breach the P60-per-dollar level, hitting a record low of P60.748 on March 31.

“The peso will likely remain under pressure as the situation in the Middle East remains fluid. A sharper depreciation would amplify imported inflation. This foreign exchange-inflation feedback loop may ultimately become a binding constraint, and may require tighter policy even in the face of a supply-driven shock,” Mr. Neri said.

HOLD?
Meanwhile, eight analysts expect the BSP to hold rates on Thursday, as monetary tightening cannot do much in addressing supply shocks.

Philippine National Bank economist Alvin Joseph A. Arogo said in an e-mail that the BSP should keep the policy rate at 4.25% on April 23 since raising financing costs seems at odds with the earlier move to provide loan relief amid current output constraints.

“Monetary tightening this soon could seriously put at risk prospects for growth recovery without doing much dent on inflation,” he said.

In a report, DBS said the BSP will likely keep rates unchanged amid slowing growth.

“The Philippines faces a potential stagflationary shock this year, with growth witnessing a weak handover from last year, while inflation comes off a low base, and peso remains under pressure,” DBS said.

China Banking Corp. (Chinabank) in a note said the BSP is likely to adopt a “prudent wait-and-see approach” due to heightened global uncertainty.

“Domestically, inflationary pressures continue to be driven largely by volatile supply-side factors, while demand conditions are showing signs of softening, reducing the case for immediate monetary tightening,” Chinabank said.

ING said the weaker growth outlook will prompt the BSP to hold rates but expects Thursday’s decision to “likely be close.”

“The Philippines remains one of the most oil-exposed economies in the region, prompting us to downgrade our 2026 GDP (gross domestic product) growth forecast to 4.5%. Against this weaker growth backdrop — and assuming the current geopolitical escalation eases in the near term — our base case is for the central bank to remain on hold in April,” ING said.

HAWKISH BSP
Meanwhile, Chinabank said concerns over the de-anchoring of inflation expectations are likely to keep the BSP hawkish.

“The Philippines is in the hawkish camp, leaving the door open to modest tightening moves this year if price risks prevail, as retail fuel prices are prone to swings in tune with global prices,” DBS said.

Standard Chartered Bank Asia Economist and FX Analyst Jonathan Koh said in a report that while they do not expect a rate hike this month, the BSP could raise borrowing costs at its June 18 meeting.

“Inflation passthrough is likely to pick up in coming months, driven by faster fiscal spending, possible transport fare hikes, higher rice and food prices, and Philippine peso-driven imported inflation, which could eventually prompt a one-off rate hike to safeguard price stability,” Mr. Koh said.

On the other hand, Patrick M. Ella, an economist at Sun Life Investment Management and Trust Corp., said the central bank could even reverse its expected rate hike this week by the second half of the year if the Middle East conflict is resolved soon. — Aaron Michael C. Sy

Since its incorporation in April 2011, AVEGA has evolved from an emerging healthcare solution into one of the country’s most expansive managed care companies. The organization currently manages 600,000 lives for over 950 corporate and institutional clients, insurance, and broker partners, reaching P1.3 billion in revenue in 2025.  This diverse portfolio includes small- and medium-sized enterprises, large local conglomerates, and multinational organizations across critical sectors such as BPO, manufacturing, retail, banking, and education.

“AVEGA’s journey has always been driven by the need for innovative healthcare,” said Norman Amora, AVEGA President. “As we look to the future, we remain committed to excellence, accessibility, and meeting our members’ evolving healthcare needs. Our focus is on enhancing our capacity to deliver efficient solutions amid rising global healthcare costs.”

The company’s extensive reach is supported by a robust healthcare network, comprising over 70,000 highly regarded physicians and 3,000 reputable hospitals and diagnostic centers. This operational excellence has earned AVEGA significant industry recognition, including being named the “Best Performing HMO in 2023” and ranking among the “Top 5 Best Performing HMOs in 2025.” The company also maintains ISO certification for its Information Security Management System (ISMS) to ensure compliance with international data privacy standards.

To lead the next era of managed care, AVEGA is actively expanding its digital ecosystem. Key initiatives include the AGORA platform, which features mobile apps and web portals designed to streamline the patient experience. The company has also installed self-service kiosks within hospital hubs for faster requisition of consultation forms. Further innovations include automated member enrollment or termination and claims processing, e-RCS Express for faster generation of consultation forms, and the ongoing development of an app specifically for affiliated physicians.

Beyond technology, AVEGA is expanding the reach of its specialized care. The company has entered into a pioneering partnership with Mitsubishi Corp. following its recent investment in Fullerton Health, the parent company of the Intellicare Group. This collaboration focuses on delivering data-driven healthcare solutions while expanding business opportunities in local and regional markets.

“I would like to congratulate AVEGA on reaching this important 15‑year milestone. The Company’s growth reflects a deep understanding of the Philippines market and a steadfast devotion to accessible, innovative healthcare. As part of the Fullerton Health Group, AVEGA contributes meaningfully to our commitment to providing high‑quality care across the Asia Pacific region. We are proud to support the team as they continue to forge new paths forward,” said Ho Kuen Loon, Group Chief Executive Officer and Executive Director of Fullerton Health.

In line with its 15th-anniversary milestone, the company is also re-introducing its official brand mascot, Ava the Purple Panda, as a caring, supportive, and knowledgeable companion. Ava embodies the empathy and approachability that define AVEGA, serving as a trusted partner for every member throughout their healthcare journey.

The organization is also integrating Economic, Environmental, Social, and Governance (EESG) principles into its core operations. These practices include a push for digital HMO IDs over physical cards to reduce waste, mindful sourcing from local suppliers, and sustainable workplace practices that promote employee wellness, productivity, and social responsibility.

With 15 years of proven expertise, AVEGA remains dedicated to evolving alongside the modern workforce. By bridging the gap between affordable and accessible health coverage and quality medical care, the company continues to empower organizations to build a healthier future through tailored healthcare solutions.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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Next week the county Board of Supervisors will debate putting a measure on the ballot best known for its provision that would allow the supervisors to run for a third term.

But you should watch the discussion with more in mind: This would be a historic shift of power and it’s the latest in an effort to wrest some of the control of day-to-day operations away from the bureaucratic leaders who have dominated it.

The leaders of the county’s bureaucracy have dominated county operations, though, because of how badly it used to run. County supervisors used to directly meddle with managers and operations. There’s even a specific law prohibiting them from tampering with the official in charge of handing out contracts. Laws like that come from scandal.

So the question this week is if County Supervisor Terra Lawson-Remer’s proposal is a necessary rebalancing of power at the county, allowing voters to see and influence county operations more, or whether it would unlock some of the chaos of the past.

The big questions: Forget the term limits. It’s no doubt a big deal but it’s a stark question you can decide however you want.

Lisa Halverstadt did a great job breaking down all the elements of the proposal from Lawson-Remer and a coalition of supporters of the reform.

Supervisors want more say in how the county operates. The change achieves this in three ways: giving the supervisors their own budget analyst; giving the supervisors final say on top managers the chief administrative officer hires; and reforming a law that prohibited supervisors from “interfering” with county operations.

The budget analyst is not a small deal. Right now the county’s chief administrative officer controls the budget and any changes to the budget the supervisors request. It would absolutely change the dynamic to have a new team reading, analyzing, explaining and proposing different options.

The other two are more controversial proposals. The supervisors not allowing the chief administrative officer to decide her top staff is an unambiguous vote of no-confidence in her leadership. A longstanding feature of board-executive power dynamic is that the board gets to hire and fire the executive but then the executive has some latitude to deliver on expectations as they see fit.

But the more interesting change is the question of non-interference.

Democrats, unions and progressive activists have been methodically pursuing reform to the county for almost 20 years. Scandals in 1980s and financial chaos in the 1990s had led county leaders to install a fierce technocratic bureaucracy focused on management excellence, fiscal conservatism and efficiency. It was not politically neutral though, it was institutionally conservative.

In 2022, as the dam started to break, the county’s lawyer issued a confidential memo addressing questions he had been getting about the so-called non-interference law that says no member of the board shall give orders, instruct or interfere with any officer or employee reporting to the CAO.

The supervisors, at that time led by former Supervisor Nathan Fletcher, felt they were running into a kind of deep state in the county that wouldn’t respond to the changes they wanted. Lonnie Eldridge explained that was by design.

The San Diego Evening Tribune in 1984 wrote series of articles about the “county in chaos.”

The central claim was that supervisors were treating county employees as their own reports. The newspaper urged reform. “County staff members complained privately that board members routinely summon them to their private offices and ordered pet projects begun or studies undertaken,” wrote the LA Times in 1984.

Neil Morgan, one of the founders of Voice of San Diego, wrote a special editor’s note about the series in the Evening Tribune. “These problems cannot be solved overnight, because they have been years in building — years during which many San Diego County citizens knew things were going awry, but felt helpless to change the course.”

That year, voters approved the non-interference clause. The district attorney was empowered to enforce it.

Now Lawson-Remer and her allies want to change it. Here’s how Halverstadt describes the new proposal:

“The changes would clarify that board members can get information on county policies and activities, get help preparing initiatives if requests are made to the CAO and give input on hiring and dismissal of certain county managers.”

Poll shows support: The Laborers Local 89 shared a poll showing voters are into the change 78 percent of respondents would support a question that emphasized the creation of an ethics commission, independent budget analyst and auditor and term limits.

“For the nearly 5,000 working men and women we represent, accountability comes from transparency, oversight, and responsible governance. This measure strengthens independent oversight and transparency, while maintaining reasonable term limits that balance experience with accountability,” said Valentine Macedo, the business manager and secretary-treasurer of the union.

Old guard says pump the brakes: Dianne Jacob, former supervisor, said she doesn’t understand what the problem is they’re trying to solve. “This is nothing more than a political power play under the guise of more transparency and accountability,” she said.

Peter Seidler’s Investment Pays Off

In the world of sports, everyone is always looking for umbrage – something to be offended about. Something to put on the bulletin board to rally the team. And in 2023, Padres fans got what appeared to be a doozy from Colorado Rockies owner Dick Monfort.

In an interview with the Denver Post, Monfort groused about what his counterpart in San Diego, Peter Seidler was doing. That year was the height of Seidler’s spending. There wasn’t a star free agent in Major League Baseball that Seidler wasn’t interested in signing. The Padres, a supposed “small-market” team suddenly had the third-highest payroll in the league.

“That puts a lot of pressure (on us),” Monfort told the Denver Post. “What the Padres are doing, I don’t 100% agree with, though I know that our fans probably agree with it. We’ll see how it works out.”

They were vague comments loosely communicating that Monfort thought what Seidler was doing was unsustainable and we loved taking umbrage.

And now we see how it worked out: Friday news broke that the Padres ownership has come to terms with Puerto Rican businessman José E. Feliciano and his wife Kwanza Jones.

That was interesting and for the next few weeks, I think we’re going to learn a lot about Feliciano and Jones. (This Princeton Alumni Weekly piece is a bit fluffy but offers some insight into the kind of people they may be in San Diego – if they’re here much at all.)

The really interesting news for this first day though wasn’t the buyers, it was how much they were paying. They are buying the Padres at a reported valuation of $3.9 billion – a record shattering price for a Major League team. Steve Cohen bought the Mets in New York for $2.42 billion in 2020.

Seidler and his partners bought the team for $800 million in 2012. The Padres current owners will walk away with a 387.5 percent profit or 11.6 percent per year.

Decent.

For many years, it wasn’t just Monfort but lots of people described the spending Seidler was doing as reckless or unsustainable. When he died, people said it must have been his consciousness of his mortality that made him uniquely willing to spend.

Or it could have been just a wise and awesome investment that will now benefit his family for generations. It certainly wasn’t risk free and when he was borrowing money or otherwise outpacing revenue, he probably made some friends and colleagues nervous. But we don’t need to remember him as a saint or reckless spender seizing at life’s joys before he left.

He saw a chance to create something cool and he went for it.  

Who’s Got the Money in the 48^th?

Dispatch from Mason Herron: The race for the 48th Congressional District is one of the most closely watched not just in California, but nationally — and the amount of money pouring in to campaigns reflects that.

This week we got the latest round of fundraising figures from the major candidates: Brandon Riker (D), Ammar Campa-Najjar (D), Marni von Wilpert (D), and Jim Desmond (R).

For the most recent quarter (Q1 2026), Marni von Wilpert led the field with $520,715 raised, followed by Brandon Riker at $382,659. Jim Desmond and Ammar Campa-Najjar were close behind, bringing in $275,874 and $277,146, respectively.

Here’s where they currently stand in terms of cash on hand—the amount available to spend:

• Riker (D): $1,089,814

• Desmond (R): $1,064,356

• von Wilpert (D): $545,798

• Campa-Najjar (D): $456,365

On the surface, Riker appears to be in the strongest position, with Desmond not far behind. But there’s a bit more going on here.

The biggest factor is that the vast majority of Riker’s total — around $856,000  — comes in the form of loans to his own campaign. That’s different from a contribution. A candidate can repay a loan (even to themselves) but once money is contributed, it’s gone. So the loan money is available to spend, it is inflating his numbers. Whether he actually intends to deploy that money is something only his campaign knows.

Desmond’s numbers are fairly routine. He’s consistently raised in the low- to mid-six figures, and this quarter was no different, bringing in $276,000. As the only notable Republican in the race, he has a clear lane to consolidate GOP donors and could see an uptick following a recent endorsement from President Donald Trump.

Ammar Campa-Najjar came out strong, raising nearly half a million dollars in his first report, but his totals have declined each quarter since, including $277,000 this most recent period. That likely reflects early access to “low-hanging” donors when the Democratic field was thinner, before the passage of Proposition 50 made the race more attractive and drew in additional candidates.

Marni von Wilpert had her strongest quarter to date, bringing in $520,000. If you set aside Riker’s self-loans, she narrowly outraised Campa-Najjar and Riker combined. She’s also the only candidate whose contributions have grown each quarter (again, excluding Riker’s loans).

The most telling signal may be how PAC money is starting to line up behind von Wilpert.

In Q1 2026, PAC contributions to the three Democratic candidates broke down as follows:

• von Wilpert: $108,250 (27 PACs)

• Campa-Najjar: $16,000 (7 PACs)

• Riker: $1,000 (1 PAC)

Her first-quarter numbers suggest that the Democratic establishment may be starting to coalesce around her. Contributions came from LGBTQ caucus PACs, organized labor (IBEW, NEA, NUHW), trial lawyers (AAJ PAC), national strategic PACs (Take Back the House, No Vote Left Behind, Resistance), and leadership PACs tied to sitting House Democrats (Barragán, Aguilar, Doggett), along with direct transfers from Reps. Julia Brownley and Juan Vargas.

It’s still early, but the pattern points to emerging momentum. Beyond the direct financial benefit, it also signals the potential for outside spending during the primary from these same networks or aligned groups.

Foster Supports Trash Fee Repeal

The effort to repeal the trash fee is going swimmingly, the Lincoln Club Business League says. 

The group tweeted out a picture of a car full of petitions signed by voters earlier this week. 

Indeed, the odds the repeal will make the November ballot seem high. The effort only needs 20,000 signatures, because it is a fee repeal and requires fewer signatures than other citizen initiatives. 

The three candidates running for Council District 4 in southeastern San Diego don’t like the trash fee much themselves — but exactly how much they dislike it is a matter of degrees. 

During a League of Women Voters candidates forum this week, all three candidates answered answered “yes” when asked point blank if they supported repealing the fee. 

The race features Henry Foster III, who currently holds the council seat in play, Martha Abraham, a nurse and community activist, and Johnny Lee Dang, whose family started Rosaria’s Pizza in San Diego. 

Abraham seemed to be the most against any trash fee. She said the city needed to look to cut expenses before continuing to “nickel and dime” its residents. 

Dang and Foster hedged more, when elaborating on their answers. 

Dang said the cost of trash should be split between the city and residents. 

Foster said the cost should not exceed $29 per household per month — what city leaders originally pitched. That fee went up to more than $40 per month in the end and homeowners were furious when their tax bill arrived. 

Repealing the fee completely would mean “more cuts to libraries, more cuts to parks and rec, more cuts to roads, more cuts to our stormwater infrastructure,” he said. 

Foster is right that there would be a massive impact. If voters repeal the trash fee it “would blow a $100 million hole in the city budget,” as the Union-Tribune put it. That would almost certainly make it the defining issue for San Diego government over the next few years.

Lisa Halverstadt contributed reporting this week. If you have any feedback or ideas for the Politics Report, send them to scott.lewis@voiceofsandiego.org or will.huntsberry@voiceofsandiego.org.

The post Politics Report: The County Reform appeared first on Voice of San Diego.

“We’re studying the possibility of solarization of our public schools,” Education Secretary Juan Edgardo “Sonny” M. Angara told reporters in a briefing on Thursday.

“This is a long-term solarization, putting solar panels on the roofs of our public schools because we’re seeing it done a lot in some government buildings,” he added.

Mr. Angara noted that Energy Secretary Sharon S. Garin is open to the idea, and that it aligns with President Ferdinand R. Marcos Jr.’s policy on renewable energy.

“So definitely I can see that this is a good option to add solar panels in our schools to be economical. At the same time, you’re helping the national effort to conserve energy,” he said.

The project, however, is scheduled for next year due to a lack of funding in the agency’s 2026 budget.

“The problem is, as you know, with the government, you have to budget a year ahead. If we want to do it, we don’t have a budget for it yet, unless we have savings or we get it from our maintenance funds,” Mr. Angara said.

“Realistically speaking, if we’re looking at doing it on a large scale, it will be for next year,” he added.

In addition to the energy conservation efforts, the DepEd also issued protocols and flexible work arrangements, following the Memorandum Circular (MC) No. 114 issued by Malacañang in March.

Some of these protocols include maintaining a standard thermostat setting of 24°C for air-conditioned spaces, activating sleep settings on all office equipment, strictly turning off non-essential lights and electronic equipment during lunch breaks and after hours, and minimizing elevator usage.

For the upcoming opening of classes in June, Mr. Angara said the agency has yet to decide whether to transition to blended learning or maintain in-person classes.

“Regarding blended learning, we still don’t have a [directive] yet because our bias is really towards face-to-face instruction.”

DepEd will roll out its trimester system for School Year 2026-2027, replacing the traditional four-quarter system, along with the strengthened Senior High School (SHS) curriculum, marking a shift in the country’s basic education system. — Almira Louise S. Martinez

APPROVED building permits inched down 2.2% year on year in February, as high material costs and weaker residential demand weighed on construction activity.

Preliminary data from the Philippine Statistics Authority (PSA) showed building projects covered by the permits numbered 14,996 in February from 15,341 a year earlier.

This was a turnaround from the 3.2% expansion in February 2025 and the revised 1.6% growth in January 2026.

This was the weakest pace in two months or since the 2.6% drop in December 2025.

In February, construction projects covered 3.58 million square meters (sq.m) of floor area, down 3.5% year on year from 3.71 million sq.m.

These building projects that received approval were valued at P56.34 billion, 28.1% higher than a year earlier when it reached P43.99 billion.

“Downbeat economic recovery prospects and mounting building materials costs weighed on construction project appetite for February,” Marco Antonio C. Agonia, an economist at the University of Asia and the Pacific, said in an e-mail.

“The dip in approved building permits in February was mainly driven by weakness on the residential side,” Ser Percival K. Peña-Reyes, director of the Ateneo Center for Economic Research and Development, said in a Viber message.

Mr. Peña-Reyes attributed the contraction to a combination of high interest rates dampening housing demand, softer household spending, and cautious developers.

“It was largely the result of tighter financing conditions and softer housing demand outweighing modest gains in nonresidential construction.”

In February, permits for residential projects, which accounted for 61.8% of the total, fell 5.8% to 9,273.

These projects were valued at P16.42 billion, down from P18.67 billion a year earlier.

Single homes, which accounted for 81.7% of the residential category, fell 9.4% year on year to 7,578.

Applications for apartment buildings also plunged 24.4% to 1,020 from 1,350 in February last year.

Meanwhile, applications for duplex or quadruplex homes soared 381.6% to 549 during that month.

Nonresidential projects, on the other hand, increased 3.4% year on year to 3,542 from 3,426 in February 2025. This accounted for 23.6% of the total.

These permits were valued at P36.41 billion, rising 67% from a year earlier when it reached P21.81 billion.

Meanwhile, approved commercial construction applications inched up 0.3% to 2,426. These made up 68.5% of all nonresidential projects.

Industrial permits also rose 13.7% to 308, while institutional projects climbed 17.6% to 595 approvals.

Agricultural projects totaled 171 approvals, 24.8% higher than the 137 approvals a year earlier.

Meanwhile, other nonresidential works declined 54.8% year on year to 42 approvals in February.

Permits for additions, or construction that increases the height or area of an existing building, also fell 4.1% to 514 approvals.

Alteration and repair permits totaled 1,098 in February, 8% lower from a year earlier and were valued at P2.46 billion.

By region, Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved construction projects during the period, accounting for 27.4% of the total with 4,113 permits.

This was followed by Central Luzon (13.9% share with 2,090 permits), and Ilocos Region (9.3% share with 1,390 permits).

“The larger project shares in Calabarzon, Central Luzon, and Ilocos Region show property developers’ preference for projects in suburban areas outside of the dense Metro Manila core,” said Mr. Agonia.

Mr. Peña-Reyes added that this trend likely reflects aggressive decentralization and infrastructure projects unlocking new growth corridors.

“We expect further declines in the coming months as the effects of the Middle East war weighs on property demand and pushes up construction costs,” Mr. Agonia said.

He also noted that elevated borrowing costs resulting from the conflict are also hampering developer appetite.

Mr. Peña-Reyes, meanwhile, said that while a continued sharp decline is unlikely, a “weak-to-flat trend” is the more realistic near-term outlook.

“One can expect mixed data in March and a gradual recovery over the rest of 2026, rather than a strong rebound,” he added.

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials nationwide.

“Cignal’s partnership with Samsung is key to expanding our viewership,” MediaQuest Holdings, Inc., President & Chief Executive Officer Victorico “Ricky” Vargas said in a news release.

“This allows us to bring high-quality content to millions of Filipinos and meet them where they are,” he added.

Under the partnership, blockbuster movies, series, and other content from CIGNAL TV, CIGNAL Play, Pilipinas Live, and CIGNAL Super will be available on Samsung mobile devices through the Cignal app.

Cignal subscribers can also enjoy bundled offers with Samsung products, while Samsung users can gain access to pre-installed content from homegrown artists and filmmakers.

The partnership also includes joint packages for corporate clients and campaigns that promote both brands to Filipino consumers, expected to commence within 2026.

“We are proud to make Filipino programs and movies accessible to as many Filipinos as possible with this partnership,” Samsung Electronics Philippines President Roman Han said in a news release.

“As we take this step with Cignal, we will continue to work towards accelerating digital content adoption through our large device install base in the Philippines,” he added.

MediaQuest Holdings, Inc., chaired by Manuel V. Pangilinan, is the holding company of Cignal TV.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest, has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Almira Louise S. Martinez

DICT Undersecretary for e-Government David L. Almirol Jr. clarified that the temporary downtime was not caused by a security incident but rather by an overwhelming influx of simultaneous transactions on the platform.

“Our servers were overwhelmed due to the surge in eGov usage, especially following the launch of new features,” Mr. Almirol said in a statement. He noted that the app currently has around 40 million users, contributing to the high demand.

Over the past few days, users reported persistent technical issues, including difficulties logging in and an inability to access basic services. The DICT noted that the disruption lasted several hours across two days.

Following the reports, the DICT announced on April 13 that the app would undergo maintenance and feature updates, advising the public to access the platform at a later time. Immediate steps were also taken to address performance limitations.

Moving forward, Mr. Almirol said the DICT plans to expand its server capacity to prevent future disruptions.

The agency aims to fulfill this by coordinating with key government stakeholders, including Malacañang, to ensure a more robust infrastructure capable of handling higher usage as more services are integrated into the platform. — Edg Adrian A. Eva

Founder Katrina Blanca de Leon told reporters in a media briefing on Wednesday that Sibol, which means to emerge or to rise, reflects the pieces from the collection.

“It speaks about growth, but not the usual kind of growth, not the natural kind of growth. It’s a growth to pressure about transformation through challenge,” Ms. de Leon said.

“The burnt collection is not just about the burnt wood, it’s about transformation,” she added. “It’s about us communicating with you that allowing a process to unfold, making room in our lives, and trusting that what emerges will have its own kind of hope.”

Ms. de Leon noted that Filipino artisans craft each piece of furniture from the collection. “Usually, we hire an unskilled artisan, and we train them. We have our own training team or training department to really develop the artisan.”

The signature burnt look, with varying cracks, highlights a light-to-dark brown and black appearance created by burning the wood with a blue flame using a torch-like tool.

“You have to get the blue flame, and then there’s a distance, and then you have to let that fire sit on the wood for a certain time, depending on the size of the wood,” Ms. de Leon said.

“It’s really important to be precise with what you do because one mistake, the finish will look different,” she added.

The thickness of the wood also plays an important role in perfecting the burnt look.

“The project planner will compute it. For example, it’s like 80×1.4, we already have a time there,” she said. “So during the R&D process, we already have the swatches that we color, so there’s a recipe for each process.”

The majority of the collection’s pieces, such as tables and chairs, were made from mahogany wood sourced both locally, specifically in Batangas, Mindanao, and internationally. The company also uses “remnants” to promote sustainability.

“We keep our remnants and then assemble it and form them,” she said. “Our goal in Genteelhome is zero waste, that’s why we’re intentional on how we can beautify our remnants.”

Genteelhome is expected to release several new collections this year, each designed to bring unique personality, depth, and character into homes and living spaces.

“This year, our brand Genteelhome is diving deeper into exploration of studying how these finishes can live across different forms, cabinets, tables, chairs, and how they can translate into pieces that are both functional and emotionally resonant,” Ms. de Leon said.

“If you are buying a furniture for a home, it should be something to connect with,” she added. “It should be something that you can relate with.” — Almira Louise S. Martinez

This school year, there were 6,459 fewer students enrolled at San Diego County’s traditional public schools than last year. That 1.6 percent decline is the largest drop in enrollment since 2020, when pandemic closures led to a wave of student departures.  

The new numbers aren’t a surprise. They mark the 11th year in a row of declining enrollment at local non-charter schools. Last year, local traditional public schools had 59,138 fewer students than they did in the 2014-15 school year, a more than 13 percentage point decline. 

That long-term trend, driven largely by high costs of living and declining birth rates, has already forced some local districts to close schools. South Bay Union, which recently voted to close three schools, was hit with another big decline. The district’s five percent drop in enrollment was once again one of the highest in the region. 

Why it matters: Because school funding is tied to enrollment, if the trend continues like experts project it will, many more districts will face similarly difficult decisions. Projections from the California Department of Finance predicted San Diego County could lose an additional 100,000 students by 2045.

And thus far, the declines show no sign of stopping. Three-quarters of local districts saw a drop in the number of students enrolled. Among others, National Elementary School District saw a 3.5 percent decline, Escondido Union High saw a 4.6 percent decline and Del Mar Union saw a 4.75 percent drop. 

Charter schools, however, fared much better. Local charters added 2,563 students, a nearly three percent increase. That increase was likewise part of a larger trend. Since the 2024-25 school year, charter enrollment has increased in 10 of 11 years. 

Want more education news? Subscribe to Jakob McWhinney’s The Learning Curve newsletter to get the latest news straight to your inbox. 

Padres Respond to Puffer Vest Chaos

Many of the Padres fans clamoring to get their hands on a puffer vest the team was giving away at Wednesday’s game left empty handed despite waiting hours in line outside the stadium. 

The giveaway frenzy caused some fights and a lot of frustration among fans. 

Rain check? The team apologized for the wait times and directed fans to a survey. “We intend to make this right by issuing members a one-time raincheck due to the circumstances,” read a statement. 

Repeat after us, “I will not let a puffer vest disrupt my peace.” 

South County Report: What’s Next for Chula Vista? 

City officials are in the early stages of planning the next five years for Chula Vista.

South County reporter Jim Hinch writes that the city’s 25-page draft strategic plan document, which includes goals and policy priorities, touches on almost everything from roads and sidewalks to libraries, parks and public safety. 

The City Council met to discuss the plan this week, but comments and questions ran so long, they decided to schedule a workshop for a later date. Hinch explains what’s in the draft plan in his latest newsletter.

Read more here. 

Newly Homeless Again Outnumber Newly Housed

The number of people becoming homeless in San Diego County outpaced the number moving into homes in March.

The Regional Task Force on Homelessness reported that 1,101 people became homeless for the first time and 1,086 exited homelessness.

Your monthly reminder: For most of the last few years, local efforts to house homeless residents haven’t kept up with the flood of people losing their homes. That equation must change to dramatically reduce homelessness. 

In Other News 

• The San Diego Unified School District is set to expand a free after-school care service for elementary and middle school students starting this fall. The state moved the district to a new tier of state funding allowing them to offer spots to as many as 40,000 students according to a district senior director. (KPBS) Last year, our Jakob McWhinney reported on some of San Diego Unified’s big after-school care moves. 
• Tens of thousands of people living in areas near the polluted Tijuana River are being exposed to sewage and toxic gas. A proposed state bill would require the state’s standard to reflect health risks associated with the gas that raw sewage emits, hydrogen sulfide. (Associated Press) 
• Tribal leaders of the San Pasqual Band of Mission Indians have written to the state and federal services hoping to stop construction of a housing development in Poway. Members of the tribe say controlled explosions at the site are driving red-tailed hawks and other birds away. (inewsource)
• A San Diego City Council committee voted against a proposal that would have reduced the city’s hourly special event parking fee, the parking enforcement window and the enforcement zone. Councilmember Raul Campillo plans to present a revised proposal in a couple months. (Union-Tribune) 
• San Diego City Attorney Heather Ferbert’s office has filed a lawsuit against fire truck manufacturers over an alleged monopoly that profits off the taxpayers and municipalities. The county filed a similar lawsuit earlier this month. (Union-Tribune) 

The Morning Report was written by Jakob McWhinney, Andrea Sanchez-Villafaña, Lisa Halverstadt and Rami Alarian. It was edited by Andrea Sanchez-Villafaña.

The post Morning Report: Schools Hit with Biggest Enrollment Drop Since Pandemic  appeared first on Voice of San Diego.

On the latest show, our podcasts hosts discuss the topic of broken promises.

First up: A temporary fire station in San Diego is still temporary 11 years after elected officials promised to deliver a permanent fire station in Skyline.

Next: School district officials promised to fix the plumbing at a local school, but three different campaigns for tax increases later and it’s still not fixed.

Also on the show: Last week when we recorded, U.S. Rep. Eric Swalwell was the frontrunner in the governor’s race. But after bombshell sexual assault allegations surfaced, he’s dropped out of the race and left Congress. The canceling happened at warp speed. We give our uninformed thoughts on the governor’s race.

Listen Here Now

Listen: Apple | Spotify | PodLink

The post VOSD Podcast: Broken Promises appeared first on Voice of San Diego.

After decades of county managers and bureaucrats holding outsized power in county government, Board Chair Terra Lawson-Remer is proposing reforms that would rebalance the power, giving supervisors and the constituents who support them more influence on day-to-day operations and the budget. 

Next week, Lawson-Remer will ask fellow supervisors to place on the ballot a series of proposals that would give supervisors a third potential term in office and give them power to approve the hiring of top county officials. The measure would also create two positions that report to the supervisors: an auditor and budget analyst.  

The measure also calls for proposed changes to longstanding county policies that bar supervisors from trying to give orders to county staff – and one prominent supporter has reservations about changes to language surrounding board interactions with the county contracting officials and appointment votes. If supervisors approve Lawson-Remer’s proposals, voters countywide will see them on the November ballot. 

Lawson-Remer has  emphasized the broad coalition backing the reforms – from labor groups to former San Diego city manager, Jack McGrory – and her belief that they will make county government more accountable and transparent without increasing costs.

But the reforms would be a historic shift for the county arming supervisors with more power over county government – and potentially give Lawson-Remer herself a chance to run for a third term. That term limit extension and a move to allow supervisors to vote to confirm and fire top county officials have emerged as the most contentious pitches. A proposal to create an ethics commission and changes to rules meant to keep supervisors from inappropriately interfering with staff or contracting decisions are also drawing scrutiny. 

Here’s a breakdown of the charter reform proposals. 

Board Approval for Top County Staff Appointments 

For now, Chief Administrative Officer Ebony Shelton has the power to hire and fire most county officials, including her top deputy and the leader of the county’s massive Health and Human Services Agency.  

Going forward, Lawson-Remer wants supervisors to review selections for the CAO’s top deputy, the public defender, emergency services director, public health officer and deputy chief administrative officers who lead agencies like HHSA. Three supervisors must approve those appointments – and a four-fifths vote could oust officials in these positions, if voters approve her proposal. 

Kyra Greene of the Center on Policy Initiatives, a key partner on Lawson-Remer’s charter reform effort, said a controversial selection process for the county CAO post a few years ago helped fuel this proposal. Greene and others argued the process wasn’t conducted transparently and that the county didn’t offer stakeholders enough opportunities to weigh in.  

Greene said board approval will directly and indirectly increase public input on the hiring of key county decision makers who oversee significant operations. 

“I see it as the same process that we currently have for federal cabinet level appointments,” Greene said, “and it’s been working pretty well.” 

Lawson-Remer’s office struck a similar tone. 

“By requiring board confirmation for key department leadership — with a simple majority to confirm and a supermajority to fire — we are ensuring that top officials are answerable to the public, not just a single, unaccountable administrator,” Lawson-Remer’s office wrote in a statement. “This structure actually strengthens the CAO by creating a professional team that is accountable, rather than politicized.” 

McGrory, another key coalition member, has a different take. He thinks board oversight should only extend to the public defender, public health officer and director of emergency services. 

“I think it’s constraining management and tying their hands, and I think it becomes a real political issue to hire and fire deputy chief administrative officers and that should not be the case,” McGrory said. 

Another Term for Supervisors 

In 2010, labor groups and Democrats successfully fought to pass a ballot measure that secured two four-year terms for county supervisors, which has helped to usher in more Democrats. 

Now Lawson-Remer and other coalition members argue a third term for supervisors would help deliver more informed, effective county leadership.  

If approved by voters, this shift could allow nearly all sitting supervisors – including Lawson-Remer – to run for an additional term. 

Proponents of the charter reforms note that the change would put San Diego County in line with the state legislature and other large counties, including Los Angeles.  

Lawson-Remer, Greene and McGrory argue that giving supervisors a third term will translate into more effective supervisors who can shepherd and work through complex projects and initiatives that take years to implement. 

Greene also defended the decision to have the reform apply to sitting supervisors. 

“I am not seeking to punish the people currently in office,” Greene said. “It should apply to them as much as anybody moving forward.” 

Lawson-Remer’s office told Voice she hasn’t yet decided whether she’d run for a third term.  

The proposal could also set matching term limits for the sheriff, district attorney and other county elected posts that now don’t have any. But changes to state law would be required to enact those. 

Changes to the Non-Inference Clause 

In the 1980s, county government was in disarray. The Union-Tribune published a series highlighting chaotic county operations. The series described supervisors sometimes giving conflicting orders to county staff and helping to usher in bad morale and an exodus of high-level officials. 

In 1984, county voters approved Proposition A, which added a so-called non-interference clause to the county charter barring supervisors from giving orders, instructions or “interfer(ing), publicly or privately” with any county staffer that reports under the CAO other than through the CAO. County policies also require board votes on any supervisor-initiated projects that require more than eight hours of staff work. 

Lawson-Remer’s proposal includes updates to these policies that her office says were proposed by the county counsel’s office, rather than the supervisor, to “strengthen and clarify the existing non-interference clauses in the charter.” 

 After Lawson-Remer’s office referred Voice to the county counsel’s office for more details, a county spokesperson would only say that the county counsel’s office “assists individual supervisors in preparing legal documents for the board’s review” per county policies but “does not comment on any specific advice given.” 

The changes would clarify that board members can get information on county policies and activities, get help preparing initiatives if requests are made to the CAO and give input on hiring and dismissal of certain county managers. 

Greene said the changes are meant to explain what board members are allowed to do versus simply what they can’t. It would still prohibit supervisors from giving orders to county staff. 

Greene said the previous language put all the power in the CAO’s hands to decide what was appropriate.  

The reforms also tweak a section now plainly barring supervisors from attempting “directly or indirectly, to influence or coerce” the county official overseeing purchasing and contracting. 

The updated version: “An officer shall not attempt, directly or indirectly, to influence or coerce the director of the Department of Purchasing and Contracting for illegal personal gain or in a manner that contravenes the prohibition on interference set forth in section 501.9.” 

McGrory said he was not aware of the proposed changes to the contracting interference language until Voice flagged them and was concerned about the potential changes. He said local government contracting presents lots of opportunities for undue influence and the earlier language laid out clearer, broader guardrails. 

“I would stay with the old language,” McGrory said. “The old language is much more direct and clear.” 

A County Ethics Commission 

Lawson-Remer proposes creating an appointed seven-member ethics commission to investigate ethics allegations against elected county officials and issue public reports. The proposal allows supervisors to give the commission subpoena power to order witnesses to participate and provide evidence. It also calls for members to be appointed by supervisors and the county counsel. 

Multiple experts raised concerns in the Union-Tribune earlier this month that Lawson-Remer’s proposal didn’t include key elements – such as dedicated staff or details on fines that could be issues – that would clarify the effectiveness of the commission.  

In a statement, Lawson-Remer wrote that she expects a charter implementation task force to set specific rules for the commission but that the measure was drafted to make the commission effective. 

“I absolutely support equipping this commission with every tool, including subpoena power, to investigate and address complaints against elected officials,” Lawson-Remer wrote. 

In an interview this week, County Supervisor Joel Anderson suggested the county should instead seek a contract with the state’s Fair Practices Political Commission to handle ethics complaints against elected officials instead.   

Lawson-Remer’s office argued the commission wouldn’t have jurisdiction over local laws, the state’s open meeting laws or non-campaign issues. 

A County Independent Budget Analyst 

County supervisors and activists have long been frustrated with the lack of transparency on county spending and details in the county’s $8.6 billion annual budget. The budget process kicks off in May with a proposed budget mostly baked by the CAO that can be difficult for even seasoned advocates to decipher. 

Lawson-Remer seeks to address those concerns by requiring public postings on county spending and operations and hiring an independent budget analyst that reports to supervisors to dig into budgets and plans.  

The San Diego City Council and the state legislature have for years relied on nonpartisan budget analysts. 

Lawson-Remer envisions the potential county analyst producing revenue projections, evaluating assumptions county staff have made in budget documents and advising supervisors on the fiscal implications and tradeoffs of priorities and budget proposals. 

“An independent budget analyst allows the board and the public to move from reacting to a finished budget proposal toward actively shaping fiscal priorities in an ongoing way, both in preparation for the annual budget and over the course of the year as budget adjustments must be made,” Lawson-Remer’s office wrote in a statement.  

Evaluations of County Programs 

County supervisors have long had questions about the effectiveness of some county programs – and have often struggled to get clarity from county officials on how things are working, especially when they aren’t. 

Lawson-Remer herself pushed for the creation of the county Office of Evaluation and Performance Analytics, which was supposed to deliver such reviews. She now acknowledges the office hasn’t lived up to her vision – and believes that’s because it’s embedded inside the county government it’s trying to evaluate. 

“It’s too hard to be objective and move quickly when you’re stuck navigating approvals and buy-in from the very programs you’re supposed to be evaluating,” Lawson-Remer’s office wrote in a statement. “That’s why we want to move this independent program auditor function out of the bureaucracy it is evaluating and into a more independent role, where it can operate objectively with more direct accountability to the board and the public.” 

Lawson-Remer envisions the office conducting independent and publicly published evaluations of county programs, services, pilot initiatives and more. 

“Without an independent auditor flagging those issues early, we continue to dump money into ineffective programs,” her office said. 

Anderson, who has often spoken out about perceived shortcomings of the Office of Evaluation and Performance Analytics, was critical of the current plan for the role but said he would support making it an elected position to ensure its independence. Under Lawson-Remer’s proposal, the role would be hired and potentially fired by the county board. 

“There’s nothing independent when three votes can remove you from office and three votes can control your budget,” Anderson said. 

Making It Happen 

If voters approve the charter reforms, Lawson-Remer promises they’ll be implemented with “no additional cost to taxpayers.”  

Her plan is to propose that Greene and McGrory co-chair a two-year implementation task force that will advise the county as it enacts the charter reforms.  

Lawson-Remer’s proposal also calls for the task force to create a county bill of rights that translates the updated charter into “clear, plain-language commitments the public can expect from county government, covering transparency, accountability, access to information, and public engagement.” 

The post Proposed County Gov Reforms Would Give Supervisors More Power appeared first on Voice of San Diego.

“Disheartened” is the word that comes to mind for Rita McIntyre when thinking about how California leaders have addressed the state’s biggest issues, such as housing prices and homelessness.

“I’m concerned about the state,” said McIntyre, who has lived in Chula Vista since 1958. “It’s so bad. It is just so bad out there. And, for me, it’s so disheartening.”

McIntyre, a retired mortgage underwriter and registered Democrat, is far from an anomaly. Her sentiment is shared by large swaths of the electorate, which is perpetually squeezed by the nation’s most expensive housing market and record-breaking gas prices.

Amid a governor’s race in disarray, the San Diego voters I spoke to for this week’s Sacramento Report echoed disappointment about high housing costs, gas prices and homelessness and expressed cynicism about whoever replaces Gov. Gavin Newsom’s ability to address them.

After former U.S Rep. Eric Swalwell dropped out of the race in disgrace following sexual abuse allegations, the remaining seven Democratic candidates have had a difficult time distinguishing themselves. Some Democrats still fear that the two Republicans, Riverside County Sheriff Chad Bianco and political consultant Steve Hilton, could advance to the general election in California’s open primary.

Mail ballots will hit voters’ mailboxes in less than three weeks.

The people I spoke with are overwhelmingly looking for authenticity and a commitment to do what they say they will. Many are also looking for a leader who, like Newsom, will act as a bulwark against the Trump administration.

Many are frustrated with President Donald Trump’s immigration policies and would like someone who is able to antagonize him. Others say they want faster progress for California’s high-speed rail project, and others are hoping for more attention to the Tijuana River sewage crisis.

Immigration arrests have skyrocketed in San Diego under President Donald Trump’s second term. Federal immigration officers arrested more than twice as many people in San Diego and Imperial counties in September and October from and the previous year, and overall arrests shot up by 1,500 percent from May to October compared to the same period in 2024, a CalMatters analysis found.

Right next to the border, many residents in Chula Vista, including McIntyre, are upset with the arrests and frustrated about reports of unsafe conditions at the Otay Mesa Detention Center, where the county has sued the Trump administration for allegedly blocking a public health inspection.

“I can’t say the current governor is doing anything, or a new one will do anything,” McIntyre said. “But you have to keep trying.”

Some voters said they’re looking for a candidate who will prioritize the Tijuana River cleanup by collaborating with the federal government.

Becky Fredrickson, a stay-at-home mother who considers herself an independent but usually votes for Democrats, said she’ll likely support Xavier Becerra after previously backing Becerra. She believes Becerra, who served as state attorney general during the first Trump administration, has the experience of going toe-to-toe with the president that she’s looking for in a candidate. But she’s doubtful.

“I’m tired of being deceived. I’m not happy with any political party right now. I think people really need to make them accountable,” Fredrickson said.

Others said they’d like more transparency and efficiency about how public dollars are being spent. 

“Things like the bullet train that’s wasted billions and nobody’s accountable for, just boggles my mind,” Dale Peterson, a retired city planner, said about the high-speed rail project. Peterson said he is an independent.

“I’m not particularly thrilled with the two guys on the Republican side, either,” Peterson said. So far, he is most interested in San Jose Mayor Matt Mahan, a moderate Democrat and Newsom critic. But he said he’ll likely vote for a Republican in June to ensure that a candidate from both parties is on the ballot.

Some members of San Diego’s delegation in the state Legislature have endorsed candidates. Assemblymember Chris Ward of San Diego and Assemblymember Tasha Boerner of Solana Beach have endorsed billionaire Tom Steyer. Assemblymember LaShae Sharp-Collins of La Mesa and Akilah Weber Pierson of San Diego have endorsed state Superintendent of Public Instruction Tony Thurmond. Encinitas Sen. Catherine Blakespear has endorsed Mahan. San Diego’s GOP state lawmakers — Sen. Brian Jones and Assemblymember Carl DeMaio — have not endorsed a gubernatorial candidate.

Still, many voters aren’t engaged, Loyola Marymount University political science professor Chaya Crowder said. It’s easier to vote in California than almost any other state, yet voter turnout hovered around 33 percent statewide in last year’s special election, Chowder said. Turnout is also typically lower in midterm elections compared to general elections. 

In 2024, 71 percent of registered voters showed up at the polls for the November election, while just 35 percent did in the June primary, according to the secretary of state’s office.

“There’s a large amount of political apathy. I don’t think people feel that their vote or their voice matters, and that can be demobilizing,” she said.

What I’m Reading Now

At the San Francisco Chronicle, an editor breaks down how the newsroom’s politics reporters corroborated long-rumored sexual abuse allegations surrounding former Democratic Congressmember Eric Swalwell.

Gavin Newsom’s PAC paid $1.5 million to distribute his memoir to supporters, making up roughly two-thirds of the book’s total print sales, The New York Times reports.

Candidates for California’s top schools job showed little daylight between one another at a forum in San Diego, the San Diego Union-Tribune writes.

Thanks for reading this week’s Sacramento Report. Please feel free to reach me at nadia@voiceofsandiego.org.

The post Sacramento Report: Frustrated Voters Begrudgingly Tune In to Governor’s Race appeared first on Voice of San Diego.

“South Africa is set to be DigiPlus’ second international market after the company’s entry into Brazil,” the company said in a statement on Thursday.

The listed digital entertainment provider said it secured three operator licenses from the WCGRB: a national manufacturer license, a bookmaker license, and a bookmaker premises license.

“This paves the way for DigiPlus’ entry into South Africa, the largest online gaming market on the continent, which is estimated to have generated $4.9 billion in gaming revenues in 2025,” it said.

The WCGRB has jurisdiction over Western Cape, which accounted for about 31% of South Africa’s online gaming revenues in 2025. The region is considered a key entry point for international operators due to its regulatory environment and digital infrastructure.

The company targets full commercial operations in Brazil in the first half of 2026.

In November last year, DigiPlus President Tsui Kin Ming said “I would say sometime in early 2027, we will also do a soft launch in South Africa.”

Also last year, DigiPlus paused the soft launch of GamePlus to refine the platform for Brazilian users. The company said the move would allow it to improve product quality and better align with local preferences, with plans to relaunch it in early 2026.

DigiPlus said its net income was steady at P12.6 billion in 2025, while revenue rose 12% to P84.2 billion from P75.2 billion in 2024, as first-half performance offset a slowdown in activity after the third-quarter delinking of electronic wallet in-app access to licensed online gaming platforms.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 2% to P14.2 billion in 2025.

“Despite a challenging and evolving industry landscape, DigiPlus delivered a resilient performance in 2025, reflecting the strength of our platforms, disciplined execution, and the trust of our users. As we look ahead, we remain optimistic about our growth trajectory and are confident in our ability to continue innovating responsibly while creating long-term value,” DigiPlus Chairman Eusebio H. Tanco said.

For the fourth quarter, DigiPlus’ net income fell 36% to P2.5 billion, while revenue declined 27% to P17.3 billion, amid partial regulatory effects. EBITDA rose 52% from P2 billion, supported by improved cost controls and operations.

At the stock exchange on Thursday, shares in the company closed 0.13% lower at P14.98 apiece. — Alexandria Grace C. Magno

In an order promulgated on April 14, the ERC gave Meralco the go signal to recover from consumers the monthly fixed fees it owed to its unit, Excellent Energy Resources, Inc. (EERI), for the power supply supplied early last year.

The amount to be recovered stood at P3.67 billion and $6.37 million (P381.7 million) for the costs relating to the declaration of commercial operations date of the gas plant’s units.

This is equivalent to an additional charge of P0.1099 per kilowatt-hour (kWh), which the ERC allowed Meralco to collect from its customers over a 12-month period.

“However, considering the current situation of increasing prices of electricity, the Commission finds it prudent to adjust the start of recovery period not earlier than September 2026 billing,” the ERC said in an 18-page order.

The recovery rate to be charged by the power distributor remains subject to the ERC’s earlier advisory, which encourages all distribution utilities experiencing generation cost increases of more than P1 per kWh to stagger the adjustment.

EERI, the operator of the 1,275-megawatt combined cycle power plant in Ilijan, Batangas, is jointly owned by the subsidiaries of Meralco, Aboitiz Power Corp. and San Miguel Global Holdings Corp. (SMGP).

EERI is 67% owned by Chromite Gas Holdings, Inc. — the joint venture between Meralco PowerGen Corp. and Therma NatGas Power, Inc., and 33% by SMGP.

The ERC partially approved the 15-year power supply agreement of Meralco and EERI in late 2024 amid pending acquisition of the gas plant.

The three units of the EERI plant have yet to secure certificate of compliance from the ERC but already obtained the final certificate of approval to connect (FCATC) from the National Grid Corp. of the Philippines (NGCP).

“The Commission recognizes that the (commercial operations date) of EERI is from the date of NGCP’s FCATC for each unit of the EERI plant. Hence… the Commission determines that the reasonable recovery period to be used is 12 months,” the ERC said.

Meralco is the country’s largest private electricity distribution utility, serving more than 8.2 million customers in Metro Manila and nearby provinces including Bulacan, Cavite, Rizal, and parts of Laguna, Batangas, Pampanga, and Quezon.

In April, Meralco raised electricity rates by P0.5335 per kWh month on month to P14.3496 per kWh, driven by higher generation costs linked to the peso’s depreciation.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

In a policy note, PIDS Senior Research Fellow Jose Ramon G. Albert said the national poverty rate is projected to go up to 14.4% this year under the current scenario where oil is at around $105 per barrel and a 35% pass-through effect. The poverty rate stood at 13.2% in 2025.

“The poverty impact is substantial and immediate. The current scenario has already pushed an estimated 1.34 million Filipinos into poverty, reversing much of the progress made since 2023. Fuel price stability must be treated as a priority for social protection,” he said.

In a “prolonged crisis” scenario where oil prices hit $125 per barrel, Mr. Albert projects the poverty rate to go up to 15.3% with 2.35 million considered as “newly poor.”

Under a severe disruption where oil goes up to $145 per barrel, the poverty rate could hit 16.3% as an additional 3.5 million Filipinos are pushed into poverty.

All these newly poor individuals come from low-income but not poor households.

The PIDS policy note drew on three fuel price shock scenarios developed by the Asian Development Bank in the context of Middle East conflict risks.

Mr. Albert said rural areas will see a sharper increase in poverty rates — 20% under the current scenario and up to 22.5% in the most severe scenario.

“Under (the current scenario), rural poverty rises by 1.5 percentage points (compared to 0.9 percentage point in urban areas), reflecting a heavier reliance on fuel-intensive agriculture, limited income diversification, and higher food expenditure shares,” he said.

He noted the Bangsamoro Autonomous Region in Muslim Mindanao, other regions in Mindanao (excluding the Davao Region), as well as all regions in the Visayas, Bicol, and Mimaropa will see the biggest incremental increase in poverty from an already high base.

“While all households experience roughly similar price impacts (3.2-3.3%) under current conditions, the welfare consequences are regressive. Because poor households allocate over 57% of their spending on food, and food supply chains are highly energy intensive, the transmission of cost increases through food prices disproportionately affects low-income households,” Mr. Albert said.

The PIDS’ microsimulations on the impact of the oil shocks showed poor households will lose 16.2% of their annual income in real purchasing power, compared with 3.4% for the richest households.

Mr. Albert said universal fuel subsidies, such as the proposed reduction or suspension of excise tax on fuel products, can worsen inequity.

“A fuel excise tax cut that reduces prices uniformly provides roughly four times more in absolute pesos to a rich household than to a poor household,” Mr. Albert said.

Soaring fuel prices and dwindling oil reserves — driven by the Middle East conflict — have already prompted the government to declare a national energy emergency and suspend excise taxes on kerosene and liquefied petroleum gas (LPG).

Instead of fuel subsidies, Mr. Albert said targeted emergency cash transfers “can partially reverse poverty impacts at a manageable cost.”

“A P6,000-per-household tranche (P1,500 per individual) delivered through vertical expansion of existing programs, horizontal extension to waitlists, and emergency transfers to persons with disabilities, minimum-wage workers, and newly identified poor households would reduce poverty from 16.4% to 15.8%, protecting 754,000 persons, at an estimated P64.6 billion after deduplication,” he said.

As part of its coordinated response under the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) framework, the government is considering the rollout of the Suplementaryong Ayuda Para sa Apektadong Tahanan (SAPAT) program.

PIDS estimates SAPAT would cost P32 billion if implemented as a one-time P6,000 transfer to existing program beneficiaries or four million households.

Expanding coverage to recently graduated Pantawid Pamilyang Pilipino Program (4Ps) households would add P11.4 billion, while including persons with disabilities, minimum-wage households, and local government unit-identified poor households would raise the total by P43 billion to P84 billion.

However, Mr. Albert said that if the oil crisis worsens into the severe scenarios, quarterly tranches at higher amounts — P7,500 per household, or more for hard-hit regions — would be warranted.

Earlier, the World Bank said the Philippines’ limited fiscal space leaves little room for a fuel excise pause, which could cost over 0.5% of gross domestic product in foregone revenue if extended through 2026.

The multilateral lender said that the country should go for a targeted response, such as providing an additional P600 per month to 3.9 million 4Ps beneficiaries. — Justine Irish D. Tabile

PRESIDENT Ferdinand R. Marcos, Jr. has eased foreign investment rules for retail trade by allowing overseas investors to own as much as 40% of enterprises with paid-up capital of less than P25 million, under the Philippines’ 13^th Regular Foreign Investment Negative List (RFINL).

The change, introduced through Executive Order (EO) No. 113, marks a shift from the previous list issued in 2022, which barred foreign equity in small retail trade, and reflects a broader effort to align foreign ownership rules with recent legislative reforms.

Under the updated negative list, retail trade enterprises below the P25-million capital threshold are no longer fully reserved for Filipinos but remain subject to a 40% foreign equity cap.

Control of such firms must still rest with Philippine nationals, in line with the Retail Trade Liberalization Act.

In the April 13 order, Mr. Marcos cited the need to update the foreign investment framework “to reflect changes… consistent with the policy to ease restrictions on foreign participation in certain investment areas or activities,” following recommendations from the Department of Economy, Planning, and Development.

The new order also introduced a higher equity ceiling for infrastructure projects.

Procurement for public works was capped at 40% foreign equity in the 12^th RFINL under EO No. 175 signed by former President Rodrigo R. Duterte in 2022.

The 13^th RFINL now permits up to 75% foreign ownership in government infrastructure projects but limited only to projects that need special skills or technologies that local companies lack.

The latest RFINL also permits government procurement of goods with up to 40% foreign equity.

Foreign bidders are eligible to participate if allowed under a treaty or international agreement, if their country grants reciprocal rights to Philippine suppliers, if the required goods are not locally available or if their participation is necessary to prevent anti-competitive or trade-restricting conditions.

Government procurement of consulting services can now include up to 40% foreign ownership under the new rules, allowing foreign consultants to be hired when local consultants do not have the needed skills and expertise, as decided by the Head of the Procuring Entity.

The Marcos administration also codified new rules for the defense sector to bolster national security through domestic production as tensions rise in the South China Sea.

The 13^th RFINL introduced a category allowing up to 40% foreign equity for the development, production, manufacturing, assembly or operation of materiel (military materials and equipment), by in-country enterprises.

Under Republic Act (RA) No. 12024, or the Self-Reliant Defense Posture Revitalization Act, this provision covers military technology, weapons systems and armor, aiming to foster a local defense industry with limited international partnership.

The new rules also came with wider liberalizations in the telecommunications and renewable energy sectors.

While the 12^th RFINL capped radio networks at 40% equity, the 13^th RFINL permits 100% foreign ownership in telecommunications management, provided there is reciprocity from the investor’s home country.

The update is in line with RA No. 11659, which allowed up to full foreign ownership in key sectors such as telecommunications, shipping and railways by narrowing the definition of “public utility.”

A Department of Energy’s 2022 circular also allowed full foreign participation in solar, wind, and hydro energy projects.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said easing rules on retail trade will encourage more foreign investment.

“This development would indeed help provide a more conducive business/economic environment for more foreign investments to come to the local retail trade industry that would give Filipinos more choices/variety, lower prices, and better products/services,” he said via Facebook Messenger.

He also noted that the Philippines’ consumption-driven economy, where household spending accounts for more than 70% of the gross domestic product, combined with a population of over 114 million, makes the retail sector particularly attractive to foreign investors.

The 13^th RFINL will take effect 15 days after its publication.

The RFINL is divided into two categories: List A and List B.

List A covers industries where foreign participation is limited by the Constitution and specific national laws. This includes mass media, small-scale mining, and the use of marine resources in archipelagic waters and the country’s exclusive economic zone. Foreign nationals are also barred from owning or managing cockpits, as well as from engaging in the manufacture of nuclear, biological, and chemical weapons.

On the other hand, List B restricts foreign ownership to a maximum of 40% in areas deemed sensitive for reasons of national security, public health, and the protection of small- and medium-sized enterprises. These include the manufacture and distribution of firearms, explosives, and military hardware, as well as the operation of gambling facilities and massage clinics.

WASHINGTON, D.C. — The Philippines is facing a difficult situation as its heavy reliance on oil imports tests its economic resilience amid the ongoing energy crisis from the Middle East war, the International Monetary Fund (IMF) said.   

At a press briefing during the IMF-World Bank Spring Meetings on Wednesday, IMF Managing Director Kristalina Georgieva said the war’s impact on Association of Southeast Asian Nations (ASEAN) member economies is unequal, with energy importers like the Philippines taking more toll.

“For the energy importers, those that have very little to none energy reserves of oil and gas, the situation is much more difficult,” Ms. Georgieva said. “And I very much sympathize with the people in the Philippines because I know that your country does face that difficulty.”

In its latest World Economic Outlook (WEO), the IMF slashed its 2026 gross domestic product (GDP) growth forecast for the Philippines to 4.1% from 5.6% in January, reflecting weaker-than-expected growth in 2025 and the impact of the war in the Middle East. 

The IMF also expects 4.1% growth for the ASEAN-5 region, which is comprised of Indonesia, Malaysia, the Philippines, Singapore and Thailand, this year. It was marginally slower than its 4.2% estimate in January.

Ms. Georgieva noted that the region is “in a bright spot in terms of growth and economic dynamism” but must still strengthen its regional integration to better weather shocks from the war.

“Actually, ASEAN is a bright spot in terms of growth and in terms of economic dynamism,” she said. “When you look at the impact of this shock, because of this strong buildup over the years, ASEAN is actually weathering the shock as a group of countries relatively well.”

Several ASEAN energy exporters may be better positioned to weather these shocks, in contrast to the heavier impact experienced by energy importers in the region, the IMF chief said.

In the Philippines, oil prices have soared since the United States and Israel’s attacks on Iran on Feb. 28. This week saw the first rollback in pump prices, as global oil prices fell amid the temporary ceasefire in the Middle East.

The Philippines is currently under a national state of energy emergency, which President Ferdinand R. Marcos, Jr. announced last month after noting the threats to the country’s energy supply as the war drags on.

PAUSE
In a separate blog published on Thursday, the IMF said the Philippine central bank can stand pat for now to preserve easing space.

“In economies where inflation remains below target, such as Thailand and the Philippines, further rate cuts can be paused to preserve room for easing later,” IMF Asia and Pacific Department Deputy Division Chief Andrea Pescatori and Director Krishna Srinivasan said.

Philippine inflation accelerated to 4.1% in March, breaking the nearly two-year streak of it settling below the Bangko Sentral ng Pilipinas’ (BSP) 2%-4% target.

Before this, the BSP had held its rates steady in an off-cycle meeting even though it raised its full-year inflation projection to 5.1% from 3.6%, as it noted that immediate tightening risks delaying the economy’s rebound.

This paused the central bank’s easing cycle, which began in August 2024, where it delivered a total of 225 basis points in cuts to bring the policy rate to 4.25%.

BSP Governor Eli M. Remolona, Jr. on Tuesday told BusinessWorld that the expected economic relief from the government’s ongoing fiscal reforms has opened space for monetary policy tightening.

However, he noted that the central bank is still monitoring incoming data, particularly inflation, for clearer guidance for its upcoming policy review on April 23.

REGIONAL SHOCKS
Meanwhile, Asia’s resilience against last year’s US tariff policies and global trade uncertainty will be shaken as the Middle East conflict stokes inflation, weakens external balances and limits policy options, Mr. Pescatori and Mr. Srinivasan said in the IMF blog.

“Asia entered 2026 on a strong footing,” they said. “Despite the region bearing the brunt of US tariffs last April and persistent trade policy uncertainty, growth was resilient in 2025 and trade remained robust.”

“Now, the war in the Middle East and the ensuing energy supply shock are raising inflation, weakening external balances, and narrowing policy options, underscoring the region’s dependence on imported oil and gas,” they added.

The multilateral lender sees Asia expanding slower at 4.4% this year and 4.2% next year from 5% in 2025.

“Should the shock persist or intensify, as in the WEO’s adverse and severe scenarios, growth through 2027 could be reduced cumulatively by 1% to 2%,” Mr. Pescatori and Mr. Srinivasan added.

Inflation in the region is also expected to quicken to 2.6% by yearend, before easing to 2.4% in 2027. Still, this is faster than the 1.4% clip recorded last year.

“The war introduced a new and more immediate headwind clouding the near-term outlook for Asia, where net oil and gas imports equal about 2.5% of economic output,” the blog read.

Amid this, Ms. Georgieva said the crisis calls for a stronger regional integration among ASEAN countries as it faces shared economic woes.

“The Philippines is now leading the ASEAN. I am going to be there when the meeting takes place,” she said. “And I do believe that this is very important for regions that have the potential to trade more within the countries of the region.”

“Build that integration. You will benefit from it in a more shock-prone world,” Ms. Georgieva added.

In the wake of controversy over the county board chair using taxpayer dollars to poll-test potential ballot measures, Supervisor Joel Anderson is pitching reforms that would govern the use of county funds for polls. 

Anderson wants county lawyers to review and approve proposed questions, plus the scope of work and compensation for polling firms hired by county leaders. 

His proposal, set for a board vote on Tuesday, also calls for poll questions, results, participant demographics and contract details to be posted publicly online within 30 days after the poll is completed. 

Anderson said Chair Terra Lawson-Remer’s recent use of a reported $40,000 for a poll floating county governance reforms spurred his proposal. Anderson – and a San Francisco-based election law attorney who spoke to Voice of San Diego last month – both raised concerns with some questions in the poll.  

“I think moving forward to make sure that no one’s making any mistakes, whether intentional or otherwise, I want to see it go before our county counsel that they can approve it to make sure that we don’t have any complaints against us,” Anderson said. 

Anderson also argues that the polling funded by Lawson-Remer’s office should have been more readily available.  

Voice obtained detailed polling and procurement records in March, more than a month after a Jan. 28 public records request. In early March, Lawson-Remer’s spokesperson notified Voice her team had posted charter survey and revenue measure poll presentations on her county website.  

Lawson-Remer’s office said she already followed the rules Anderson’s seeking to set – and supports them. 

“Supervisor Lawson-Remer has gotten every question for every community survey — including the survey on charter reform — pre-approved by county counsel. Everyone should,” Lawson-Remer’s office wrote in response to questions from Voice. “She also shared the questions and the results of this survey in December 2025 with both Supervisor Anderson and the public.” 

Anderson’s office, meanwhile, said the supervisor himself didn’t get to see the polling until this spring – and that his staff only saw a high-level Power point presentation about it during a meeting with a staffer for Lawson-Remer in December.  

Anderson spokesperson Matthew Phy said his office spent weeks seeking the polling from Lawson-Remer’s office after Anderson requested to review it himself. 

Lawson-Remer’s office later clarified that her office shared initial documents with Anderson’s office in December but that it took time to get legal clearance from the county counsel to share it with Anderson due to turnover in the office late last year and early this year.  

Anderson said that struggle helped motivate his proposal for policy reforms. 

“That poll was conducted with public money. It should be available for the public, and it should be in a reasonable timeframe,” Anderson told Voice.  

In response to questions from Voice, Lawson-Remer’s office said she agreed. 

“(Lawson-Remer) is supportive of establishing a clear process for getting questions approved by county counsel and a reliable timeline for publicly posting results.  She has run into so many hurdles with both getting community surveys into the field and getting approval to share results because there is no clear process — it would be great to not need to reinvent the wheel every time,” Lawson-Remer’s office wrote in an email. 

Her office also suggested she might propose strengthening Anderson’s pitch by proposing training for staff on how to ensure surveys are unbiased and accurate and potentially, to seek an opinion letter from the state Fair Political Practices Commission to ensure the county’s policy follows state and local laws. 

“Supervisor Lawson-Remer thinks having a policy framework for conducting community surveys is a fantastic idea,” her office wrote. 

The post Supervisor Wants to Set Guardrails for County-Funded Polls  appeared first on Voice of San Diego.

County Supervisor Joel Anderson had some beefs with his board colleague Terra Lawson-Remer’s recent county-funded poll testing of potential ballot measures. He responded by proposing guardrails.

Anderson wants county lawyers to review and sign off on county-funded polls in the future, reports our Lisa Halverstadt. He also wants the polling itself to be posted online within 30 days of a poll being completed.

Refresher: Halverstadt broke the news last month that Lawson-Remer spent $89,000 in taxpayer money to poll test potential ballot measures that would raise taxes and reform county government — including a charter reform measure that’s also up for a board vote next week. A prominent San Francisco-based election attorney suggested one of those polls crossed the line on what state law allows local government funds to support.

Lawson-Remer’s response: Lawson-Remer’s office says she’s a fan of what Anderson is proposing – and that she’s already been following the rules he’s now pitching. Her office said the chair thinks a clear process would be helpful. 

Read the full story here.

Layoffs, Cuts, and Dwindling Revenue: Our Budget Takeaways 

Mayor Todd Gloria presented his full budget Wednesday as the city confronts a deficit well north of $100 million. While the mayor touted increases to parts of the police and fire budgets earlier this week, some departments are facing big cuts. Here are some initial takeaways:

• Mayor says he’s prioritizing homelessness services, but proposes cuts: The budget proposes more than $948,000 for what appears to be the closing of the Neil Good Day Center, the city’s main hub for homeless San Diegans. The CEO of Father Joe’s Villages, a nonprofit which oversees the center, said he’s not sure what that line item actually means. The mayor’s office did not immediately respond to a request for comment.
• Massive cuts in arts and culture funding: The mayor proposed cutting approximately $11.8 million from the city’s arts budget. He said the city no longer can afford to support local arts organizations. Local arts leaders decried the cuts.
• Rec centers and libraries on chopping block again: The mayor proposed saving $5.4 million by cutting recreation center hours and $2.4 million by reducing library hours.
• Cuts to unclassified employees: In an effort to buckle down on the city’s controversial ranks of middle managers, the mayor announced layoffs of 48 unclassified city employees, a savings of $9.3 million. Gloria said many of the positions were created in response to the Covid pandemic. The city’s largest employees union commended the mayor for tackling the middle manager issue.
• No new revenue in sight: Council President Joe LaCava confirmed our suspicions. He said the City Council learned a tough lesson last year when it tried to pass on costs to residents. For now, city leaders are only looking at cuts — as opposed to new revenue — to balance the budget.
• Transportation advocates want more: Despite a proposed $10 million increase to the city’s transportation budget, advocates said a proposed cut in the number of traffic engineers would threaten public safety.
• Related commentary: Claire Snyder, co-executive director of Youth Will, writes in a commentary for Voice of San Diego that Gloria needs to stop balancing San Diego’s budget on the backs of vulnerable youths.

National City Eyes New Business Tax 

Leaders of cash-strapped National City on Tuesday took the first step toward instituting a new business license tax that could increase revenue by up to $7.5 million per year.

The new tax, which would require voter approval, would replace the city’s current flat rate license fee with a graduated tax based on businesses’ annual revenue.

City councilmember Marcus Bush said leaders are eyeing the tax because the city needs more money and the current license fee is unfair to small businesses.

“We have a structural deficit and we need to look for other options for revenue generation,” Bush said. “Our top 100 businesses that generate the most receipts… aren’t paying their fair share.”

Bush expects the Council to decide next month whether to place the new tax proposal on the November ballot.

Proposed Leadership Changes at Einstein Academies

It’s been one controversy after another at Albert Einstein Academies, a dual-language charter school in San Diego.

Now, seeking stability, the innovative but troubled school may be eyeing a new leadership structure.

On Tuesday, the school’s board of trustees discussed a proposal to expand the board, institute term limits and stagger board members’ terms to ensure a steady infusion of new leadership.

The committee based its proposals on a survey of school families and staff that found widespread dissatisfaction.

“The school has deteriorated because of the ever-growing distance between upper administration and the people who actually make the school,” one parent wrote in the survey.

Read the Learning Curve here.

The Met Gala of San Diego Politics

We have a few remaining tickets for Off the Record 2026. This exclusive evening brings together 350 elected officials, community leaders, major supporters and newsmakers for a sharp and hilarious roast of our local leaders featuring never-before-seen footage of San Diego’s political figures. It’s a full dinner. No awards. No speeches. And it’s truly off the record. We take your phones at the door, which is actually very fun. No recording allowed.

Get your tickets here.

In Other News

• The California Coastal Commission OK’d SeaWorld San Diego’s plan to replace most of its fireworks shows with drones, caving to pressure from environmentalists.
• The Chula Vista City Council on Tuesday voted unanimously to bring a San Diego State University nursing program to a new city-built library. Leaders envision this as the first step toward a four-year university in the city. (Union-Tribune)
• The Metropolitan Transit System and the North County Transit District are considering possible fare hikes this week. The new fares would require final approval by the San Diego Association of Governments. (inewsource)
• La Mesa police on Wednesday engaged in a four-hour standoff with a woman who threatened to burn down her apartment complex with homemade Molotov cocktails after drawing swastikas on the exterior wall and door of her unit. Yikes! (CBS 8)
• Yes, it’s news that the San Diego Humane Society announced Wednesday it’s extending adoption hours this summer. But the real reason to check out NBC San Diego’s coverage of the announcement is the irresistible photo of an adoptable gerbil.

The Morning Report was written by Jim Hinch, Mariana Martínez Barba and MacKenzie Elmer. It was edited by Will Huntsberry.

The post Morning Report: Supe Pitches New Polling Rules appeared first on Voice of San Diego.

This post has been updated.

Chula Vista almost took a peek into its future on Tuesday. 

Late into a marathon City Council meeting that lasted nearly five hours, patient city staff members, along with an equally patient outside consultant, geared up to present a new strategic plan for the city more than a year in the making. 

The 25-page draft plan features a laundry list of goals and possible new policies that will set city leaders’ priorities for the next five years. 

The plan touches just about everything in Chula Vista’s 50 square miles: Roads, sidewalks, libraries, parks, sewers, storm drains, senior centers, police, fire, business districts. And on and on. 

As you might expect in a city whose 281,000 residents have strong opinions about where they live, the questions started before the consultant who helped draft the plan even got to the first proposal. 

I was reminded of Supreme Court hearings, where justices cut into lawyers’ presentations and no one (except the justices) gets to talk for more than a minute or two. 

Councilmember Jose Preciado got things started, questioning just about every statement the consultant (Kimberly Garrett from the Centre for Organization Effectiveness) made. 

Preciado even objected to calling Chula Vista “exceptional.” Every city says it’s exceptional, Preciado pointed out. (He later asked for forgiveness when he used the word “exceptional” in one of his own comments.) 

The questions rolled on until finally Councilmember Cesar Fernandez spoke up and said, “We could be here all night.” 

Given the late hour, Fernandez made the sensible suggestion to schedule a future workshop dedicated solely to the strategic plan. That would give councilmembers and the public more time to comb through the plan and weigh in, Fernandez said. 

Mayor John McCann immediately teed up a vote. A few minutes later, the discussion was over, to be continued at an as-yet-to-be-determined date. 

So, you ask, what’s in the plan? You can examine it yourself here. Or, dear reader, you can read my summary. I slog through these meetings so you don’t have to. 

The plan sets four main goals, which basically boil down to: 

• Upgrade city infrastructure. 
• Improve public safety and residents’ quality of life (parks, libraries, etc.). 
• Grow the economy and provide more jobs. 
• Make government work better. 

There’s a lot of bureaucratese. The interesting parts are what the plan calls “major initiatives.” Those are actual projects the city aims to pursue over the next five years. 

There are dozens of initiatives, too many to list here. A few highlights: 

• Complete the new Millenia Library. 
• Look into building a new police substation and senior center on the city’s east side. 
• Develop a public works (i.e. roads, storm drains, etc.) master plan. 
• Expand access to the city’s homeless shelter. 
• Complete a citywide economic development plan. 
• Pursue removal of tolls on State Route 125. 
• Expand offerings at the city’s planned four-year university. 
• Revitalize Broadway. 
• Adopt an outdoor dining ordinance. 
• Launch a new, easier-to-use city website. 
• Develop a program of internal audits of city government. 

The entire document merits a close read. I’ll be on the lookout for that future workshop. 

Until then, Chula Vista, stay exceptional. 

ICYMI: The Chula Vista City Council also had a surprise for watchers of the ongoing redevelopment saga at Rohr Park. After parks officials initially said plans for upgrading the regional park did not require extensive environmental review, Councilmembers on Tuesday voted to authorize spending up to $450,000 for a consultant to conduct an environmental analysis of the proposed park plan. (The new spending also includes additional planning work at the Chula Vista Elite Athlete Training Center.) The environmental review will take a while, giving everyone plenty of time to continue arguing about the future of Rohr Park. 

National City Eyes New Business Tax

National City on Tuesday joined the ranks of San Diego public agencies on the hunt for revenue this year. 

The City Council voted unanimously to begin researching and crafting a possible November ballot measure that would ask voters whether the city should raise more money from businesses by taxing business licenses. 

Councilmembers on Tuesday discussed a recently commissioned study that found National City collects less licensing revenue per business than many other cities in San Diego County. Cities such as Chula Vista, Escondido and Oceanside collect up to four times more licensing revenue per business, the study found. 

The study also found National City’s largest businesses get a bargain on business licenses. 

According to the study, the city’s top 100 businesses generate roughly 58 percent of all business revenue in the city but pay only 29 percent of the total amount collected in license fees. 

“They aren’t paying their fair share,” said City Councilmember Marcus Bush.  

Bush said with the city facing a multimillion-dollar deficit, leaders need to identify new sources of revenue. The licensing fee disparity, he said, is an obvious opportunity. 

The proposed ballot measure would change the way the city collects business license fees. Currently, the city charges a flat fee with a few variations depending on business size. 

The new method would impose a tax calculated as a percentage of total annual business revenue. An alternative proposal also would divide businesses into categories and charge different rates depending on the kind of business. 

According to the study councilmembers discussed Tuesday, the city could generate up to $7.5 million in additional licensing revenue per year by shifting to a new taxation method. 

Everyone likes more money, but some councilmembers seemed unenthusiastic about the new tax. 

Mayor Ron Morrison expressed doubt about voters’ willingness to back a tax at a time when costs are high and trust in public institutions (including National City’s fractious City Council) is low. 

Councilmember Ditas Yamane worried about overburdening city businesses. 

In the end, councilmembers opted to move forward. They likely will review final options next month and decide whether to present the tax for a November vote. 

Correction: This section has been updated correct the amount, the proposed tax would bring the city of National City.

In Other News 

• Seventh graders at San Ysidro Middle School this morning got a taste of the capitalist grind when they participated in a school-sponsored internship day at the Las Americas Premium Outlets mall. Students learned retail basics and gained first-hand experience in the all-American art of selling stuff. The internship program is part of the San Ysidro School District’s efforts to prepare students for careers as they near high school. 
• The San Diego Air Pollution Control District late last week postponed a vote to regulate diesel pollution and other harmful emissions from warehousing operations near the Port of San Diego and the Otay Mesa border crossing. District governing board members said they need more time to study the issue and hear from the public before voting on regulations. 
• San Diego County Supervisor Paloma Aguirre donned her tour guide hat again this week, hosting former Los Angeles mayor and current California gubernatorial candidate Antonio Villaraigosa on a tour of pollution problems in the sewage-laden Tijuana River. Villaraigosa also visited nearby Smythe Elementary School, where he heard about the effects of sewage pollution on elementary school students. 
• inewsource this week reported on budget problems in the Sweetwater Union High School District. The district joins the ranks of other financially struggling South County school districts. 
• The Chula Vista City Council on Tuesday authorized an agreement with San Diego State University to begin offering a nursing bachelor’s degree program at the city’s new Millenia Library. (Union-Tribune) 
• Southwestern College District Trustee Robert Moreno will hold what he said is the district’s first office hours session at which students and other members of the public can meet informally with a district trustee and ask questions or share concerns. Moreno said he will be available from 2-5 p.m. Thursday, April 23, in Room 7101 F at the National City Higher Education Center on National City Boulevard. 
• I didn’t have room for this one last week, but it’s pretty cool. The Port of San Diego last month commissioned Chula Vista’s Marine Group Boat Works to build a shipboard fire simulator for training first responders in fighting maritime fires. The simulator will include cabins, passageways and other features of ship interiors – all of which can be set on fire during training exercises. 

The post South County Report: Chula Vista Looks (Briefly) Into the Future appeared first on Voice of San Diego.

Prime Energy President and Chief Executive Officer Donnabel Kuizon-Cruz said the company is studying opportunities to explore additional blocks aside from Malampaya.

“We were still looking at other blocks that we could potentially explore. So we’re not focused on just one area. And of course, every year, we refresh our work program budget to see where we want to go next,” Ms. Kuizon-Cruz told reporters on Tuesday.

The Malampaya consortium — composed of Prime Energy Resources Development B.V., UC38 LLC, Prime Oil & Gas, Inc., and state-owned PNOC Exploration Corp. — is undertaking an $893-million Malampaya Phase 4 (MP4) project to extend the life of the gas field.

The Malampaya Deep Water Gas-to-Power Project spans 337,676 hectares offshore Palawan and supplies up to 13% of Luzon’s electricity requirements.

Prime Energy earlier said it had completed drilling and testing two wells — Malampaya East-1 (MAE-1) and Camago 3 — confirming the presence of natural gas reserves.

MAE-1, located about five kilometers east of the existing Malampaya field, is estimated to contain about 98 billion cubic feet of gas, while Camago 3 is estimated to hold up to 60 billion cubic feet of gas.

The company said these wells could extend the operating life of the Malampaya gas field by about six years, supporting continued supply of indigenous natural gas to the Luzon grid.

“We’ve tested these wells and we’ve proven there’s gas that we can produce to maintain the Malampaya plateau for at least six years. So that is already a major milestone,” Ms. Kuizon-Cruz said.

“And now, immediately after that, we’ve started laying the pipes that would connect these wells to the platform,” she added.

Following the completion of the two wells, the consortium is preparing to drill the Bagong Pag-asa exploration well, located about 30 kilometers north of Malampaya.

Ms. Kuizon-Cruz said the company remains on track to deliver first gas from the MP4 development by the fourth quarter of 2026.

“It’s on track. It’s going very well so far. So as long as we continue on this track, we remain on schedule. We should be able to meet the Q4 2026 promise,” she said.

The MP4 project has been certified by the government as a project of national significance. Since its inception, the Malampaya project has generated more than $14 billion in revenues for the government and reduced reliance on imported fuels. — Sheldeen Joy Talavera

WASHINGTON, D.C. — Policymakers in Emerging Asia markets such as the Philippines should implement “narrowly targeted” measures to weather current energy shocks from the Middle East war, the International Monetary Fund (IMF) said.

This, as officials from the multilateral lender noted that the ongoing crisis will test the region’s established resilience in the past decades, especially countries with high debt levels and limited fiscal space.

“The last 10, 15, 20 years have been a period where emerging market economies have really improved their macroeconomic policy making, their frameworks, and that resilience is likely to be tested,” IMF Economic Counselor and Research Director Pierre-Olivier Gourinchas told a press briefing on Tuesday.

“They don’t have a lot of room on the fiscal side,” he said. “And therefore, whatever measures they would need to deploy in order to protect the most vulnerable part of the population as a result of energy and food price increases will have to be very, very narrowly targeted and very much within their budgetary minimum.”

Based on its latest World Economic Outlook released on Tuesday, the IMF projects gross domestic product (GDP) growth for Emerging Asia to slow to 5% this year from 5.6% in 2025. It sees the region, which includes China, India, Indonesia, Malaysia, the Philippines, Thailand and Vietnam, growing by 4.8% in 2027.

Emerging Asian economies that rely heavily on oil imports have been hit by soaring oil prices and threats to their energy supply after the war in the Middle East, which erupted in late February, disrupted global oil trade and damaged key energy infrastructure.

In the Philippines, back-to-back pump price hikes and dwindling oil reserves prompted the National Government to declare a national energy emergency and suspend the excise tax on kerosene and liquefied petroleum gas (LPG).

The levies on gas and diesel were left unchanged as the Development Budget Coordination Committee said suspending it as well would bring insignificant relief to consumers compared with kerosene and LPG.

Similarly, the IMF earlier noted that domestic demand in several South and Southeast Asian economies will likely remain muted this year as the Middle East war is expected to dampen tourism and remittance flows to the region.

For the ASEAN-5, or Indonesia, Malaysia, the Philippines, Singapore and Thailand, the multilateral lender trimmed its growth forecast to 4.1% for this year from its 4.2% estimate in January. 

“In several South and Southeast Asian economies, disruptions in the Middle East are expected to reduce tourism and remittance inflows, thereby weakening domestic demand,” the IMF said.

Still, it kept its GDP growth projection for the region next year at 4.4%.

The IMF cut its Philippine GDP forecast to 4.1% from 5.6% in January and maintained its 2027 projection at 5.8%.

The regional slowdown mirrors the global trend, in which IMF Managing Director Kristalina Georgieva earlier noted that even their most optimistic scenario calls for a growth forecast cut due to the war’s toll on energy sectors worldwide.

According to the IMF, the world is losing about 13 million oil barrels daily as the Middle East war drags on, more than double the 5-6 million barrels recorded during the 1970s energy crisis.

Tobias Adrian, financial counselor and director of the IMF’s Monetary and Capital Markets Department, said Asia-Pacific (APAC) countries dependent on oil and food imports emerge as the most vulnerable to balance of payments or refinancing stress.

“It’s the most vulnerable countries that tend to be hit the hardest with this kind of shock,” he told a separate briefing on Tuesday. “And within those countries, you know, macro policies for stability are important, but it’s also first order to protect the most vulnerable among the population that are hit by the higher food and energy prices.”

However, Jason Wu, assistant director at the IMF’s Global Markets division, noted that there has not been any acute stress in APAC financial markets, even as the war caused volatility in the region’s foreign exchange market.

“There have been pronounced exchange rate movements, but those appear to be managed in an orderly fashion,” he added.

Safe-haven demand for the US dollar amid growing uncertainties from the war have weighed on most Asian currencies, including the Philippine peso.

Meanwhile, the World Bank has cautioned that the Philippines’ limited fiscal space leaves little room for broad tax relief, and called for more targeted approach to shield vulnerable households from rising oil prices.

“A targeted response, such as providing an additional P600 per month to 3.9 million 4Ps beneficiaries, could protect the most vulnerable without substantially widening the deficit,” the World Bank said in its Macro Poverty Outlook released on Monday.

“In contrast, a fuel excise pause is less targeted and could cost over 0.5% of GDP in foregone revenue if maintained through 2026,” it added.

The World Bank projects the country’s fiscal deficit to narrow from -5.6% of GDP in 2025 to -4.8% in 2026, -4.7% in 2027, and -4.4% in 2028.

The Development Budget and Coordination Committee (DBCC) projects the deficit to account for -5.3% of GDP in 2026, -4.8% in 2027, and -4.4% in 2028. It also sees the gap further narrowing to -3.7% in 2029 and -3.1% in 2030. — with reports from Justine Irish D. Tabile

LOCAL PUMP PRICES may continue to decline next week based on early estimates, despite renewed upward pressure on global oil prices following the US blockade of Iranian ports, a Department of Energy (DoE) official said.

Energy Undersecretary Alessandro O. Sales said the two-day trading average of the Mean of Platts Singapore (MOPS), a benchmark for refined oil products, remains on a downward trend.

“Even with the pronouncement of President [Donald J.] Trump that he stationed his warships at the opening of the Strait of Hormuz, apparently the market is not pricing that in. The MOPS (prices) are still going down,” Mr. Sales said at a briefing on Wednesday.

“So, if this market reaction continues, potentially we will have a more stable price or maybe we will have a rollback,” he added.

An industry source told BusinessWorld that there may be another rollback in fuel prices based on the first two days of MOPS trading and foreign exchange averages.

The source estimated diesel prices may decline by P14 to P16 per liter, while gasoline prices may go down by P1 to P2 per liter.

“The ceasefire in the Middle East is holding, reducing some of the immediate risk premium on MOPS prices,” the source said.

This week, several oil companies implemented a price rollback, with diesel prices dropping by as much as P23 per liter. Gasoline and kerosene fell by up to P6.50 and P11.50 per liter, respectively.

Energy Secretary Sharon S. Garin expressed hope that there would be no sudden disruptions, as the Philippines remains vulnerable to price swings in the global market.

“Whatever happens in the international market is reflected in our prices the following week. So, that is the danger. It’s not that we don’t want prices to go down, but we just need the public to know how significant the war is in terms of our price here in the local market,” she said at the same briefing.

To cushion the impact of these external shocks, the government has moved to order at least two million barrels of diesel to boost the country’s oil stockpiles.

The DoE, through state-run Philippine National Oil Co., has secured 471,000 barrels of diesel, all delivered to the Philippines in two shipments from Japan and Malaysia.

Mr. Sales said that a third shipment is expected to arrive by the end of this week, followed by a fourth shipment which will be delivered to Davao.

As of April 10, the country’s average fuel inventory can sustain demand for approximately 50.31 days, covering an estimated 75.55 million liters of consumption.

The average inventory for gasoline is 54.38 days; 48.9 days for diesel, 104.73 days for kerosene, 67.65 days for jet fuel, 45.96 days for fuel oil, and 36.27 days for liquefied petroleum gas.

‘NO POWER INTERRUPTION’
Also, Ms. Garin allayed fears that rising fuel prices may affect supply stability and lead to potential power interruptions, especially in remote diesel-dependent areas.

“One thing I’m sure of is that there will be no power interruptions because of the diesel price, because we have supply,” she said.

While oil makes up only around 3% of the national power generation mix, it is crucial for remote and island areas that are not connected to the main grid. Since these areas are subsidized by on-grid consumers, any increase in oil prices can still impact electricity rates nationwide.

Ms. Garin said that the state-run National Power Corp. (NPC) is studying how to source diesel at a cheaper price to cushion the impact on its operating diesel-based plants.

“The NPC is assuring [us] that they will run their generation sets no matter what the prices,” she said.

TAX ON DIESEL UNDER REVIEW
Meanwhile, Finance Undersecretary Karlo S. Fermin Adriano said that discussions regarding the suspension of excise taxes on diesel are ongoing, with the Development Budget Coordination Committee (DBCC) technical board convening weekly to review the policy.

“The door has not closed on the suspension or reduction for diesel and gasoline,” he said in a mix of Filipino and English during the Legislative Energy Action and Development Joint Committee hearing on Wednesday.

Mr. Adriano said the DBCC did not recommend any reduction or suspension for diesel, as 85% of household diesel consumption is coming from the three richest deciles, according to the Philippine Statistics Authority’s Family Income Expenditure Survey.

“Similar story with diesel, if you remove the excise tax on gasoline, who will benefit from this mostly will be the three richest deciles,” he added.

The DoF estimates revenue losses of about P39 billion, or roughly P430 million a day, if excise taxes on diesel and gasoline are suspended for three months, assuming Dubai crude prices average $100 per barrel. 

Last year, excise tax collections reached P173 billion. Excise taxes on gasoline reached P83 billion, while taxes on diesel hit P71 billion. — with Justine Irish D. Tabile

MONEY SENT HOME by overseas Filipino workers (OFWs) fell to its lowest level in nine months in February, the Bangko Sentral ng Pilipinas (BSP) reported.

Preliminary data from the BSP showed cash remittances coursed through banks rose by 2.6% to $2.79 billion from $2.72 billion logged in February 2025 but fell 7.7% from $3.02 billion in January.

However, this was the weakest level of remittances since the $2.66 billion in cash remittances in May 2025.

The annual remittance growth in February eased from 3.5% growth in January, and was the slowest since 2.5% in June 2024.

Cash remittances from land-based workers went up by 2.7% to $2.25 billion in February, while money sent home by sea-based workers increased by 2% to $530 million.

Union Bank of the Philippines (UnionBank) Chief Economist Ruben Carlo O. Asuncion said that the continued annual growth indicates “fundamentally stable” remittances.

“The (month-on-month) dip in February remittances largely reflects seasonal normalization rather than a weakening in overseas Filipino labor conditions,” he said in a Viber message, citing strong December and January inflows due to bonuses and holiday‑related transfers.

“This was also compounded by higher living costs abroad, which may have temporarily constrained the ability of some overseas Filipinos to send larger amounts,” he added.

Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said that the February remittance data reflect a “temporary dip, not a red flag.”

“February is usually a softer month due to seasonality, and higher living costs abroad mean OFWs are being more careful — even as remittances still grow year on year,” he said in a Viber message.

For the first two months of the year, cash remittances jumped by 3.1% to $5.81 billion from $5.63 billion a year ago.

Money sent by land-based workers rose by 3.1% to $4.67 billion, while money sent by sea-based workers went up by 2.8% to $1.14 billion.

“The United States remained the top source of cash remittances to the Philippines in January-February 2026, followed by Singapore and Saudi Arabia,” the BSP said.

The United States was the main source of cash remittances with a 40% share of the total so far this year. It was followed by Singapore (7.6%), Saudi Arabia (6.1%), Japan (5.3%), the United Kingdom (4.7%), the United Arab Emirates (4.2%), Canada (3.1%), Taiwan (3%), Qatar (2.9%), and Hong Kong (2.7%).

Meanwhile, personal remittances, which include inflows in kind, rose 2.6% to $3.1 billion in February from $3.02 billion a year ago.

In the January-February period, personal remittances grew by 3.1% to $6.46 billion from $6.27 billion a year earlier.

UnionBank’s Mr. Asuncion said that he expects remittance growth “to moderate but remain positive.” 

“Faster inflation and higher fuel prices — particularly those linked to geopolitical tensions in the Middle East — could weigh on disposable income in host countries, capping near‑term growth,” he said. 

Mr. Asuncion said remittances are historically resilient, as these are supported by the steady demand for Filipino workers in the healthcare, maritime, and services sectors.

“Overall, barring a sharp deterioration in global employment conditions, remittances should continue to grow at a low‑to‑mid single‑digit pace, providing a stable buffer for the Philippine external accounts,” he added.

The Asian Development Bank last week flagged remittances as a key vulnerability of the Philippines, noting that over 17% of total remittances come from OFWs in the Middle East.

“Looking ahead, inflation, slower global growth, and higher fuel prices linked to Middle East tensions may cap remittance growth in the near term, keeping it in low single digits,”  Mr. Ravelas said. “But structurally, remittances remain resilient — OFWs tend to step up support during tough times.”

The BSP projects cash remittances to climb by 3% to $36.7 billion by yearend, slower than the 3.3% seen last year.

WASHINGTON, D.C. — The Bangko Sentral ng Pilipinas (BSP) said it has room to raise policy rates as the National Government’s planned catch-up spending is expected to cushion the economy from a sharper slowdown amid the energy crisis.

In an exclusive interview with BusinessWorld, BSP Governor Eli M. Remolona, Jr. said the country will see a wider negative output gap as inflation and economic growth face mounting pressures from the Middle East conflict and the lingering effects of last year’s flood control corruption scandal.

Still, he noted that the central bank will avoid any excessive tightening.

“We don’t want to tighten by too much,” Mr. Remolona said on the sidelines of the International Monetary Fund (IMF) and World Bank’s 2026 Spring Meetings here on Tuesday.

“But there’s room to tighten, especially because the concern about growth is not as big as before, given what we think will happen on the fiscal side,” he added.   

Last month, the BSP held policy rates steady in an off-cycle meeting as it sought to calm markets amid growing uncertainties, and cautioned that tightening immediately risks delaying economic recovery.

The latest off-cycle move marked the BSP’s first hold since June 2024, pausing its nearly two-year easing cycle where it slashed the policy rate by a total of 225 basis points. It last hiked its rates in an off-cycle announcement in October 2023.

The Philippine economy slumped last year as a corruption scandal involving flood control projects dampened investments, public spending and household consumption.

Philippine gross domestic product grew by 4.4% in 2025, the worst seen since the COVID-19 pandemic.

Mr. Remolona said faster and better government spending in the second half could help ease growth woes, allowing the central bank to focus on maintaining price stability.

“The output gap will be more negative, slightly more negative than before. But we also know that government spending will pick up in the second part of the year. And not only will it pick up, it will be better quality government spending,” he said.

“So that will help growth, which makes our job a little bit easier. Then we can worry more about the inflation side, especially with the second-round effects beginning to materialize,” he added.

Second-round price effects may also emerge sooner than expected after headline inflation breached the central bank’s target range a month ahead of their forecast, Mr. Remolona noted.

“Now we’re thinking maybe the spillover effects, and as you know we focus on spillover effects, may be happening… slightly sooner than we thought,” he said.   

In March, elevated oil prices amid the Middle East conflict drove inflation to a near two-year high of 4.1%, faster than the BSP’s 3.1%-3.9% forecast and 2%-4% target for the year.

The central bank had expected inflation to move past its target by April, though Mr. Remolona said the forecast miss was “not entirely unexpected.”

“The oil price shock itself is a global shock, and there’s very little we can do about that shock. But we worry about the spillover effects of that shock,” he said. “It would spill over into the price of transportation, the price of fertilizer, and then food prices.”

Mr. Remolona earlier said that the Monetary Board’s future policy decisions will center on tempering second-order effects.

Meanwhile, the central bank governor noted that inflation expectations remain anchored so far, adding that they intend to expand their monitoring of consumer and business expectations.

“(Inflation expectations are) so far so good. So far, they look anchored,” Mr. Remolona said. “We’re probably going to do more surveys of expectations and not just look at the next two years but maybe look at five years down the road.”

WAIT AND SEE
For now, the BSP chief said they are still assessing how long they will stick to a wait-and-see approach as they weigh more data, with core inflation and prices for the bottom 30% of households among their main focus for the April 23 policy review.

“We’re looking at the data as they come… There’s still data coming that will help us make a decision on the 23^rd,” Mr. Remolona said.

“We’re not looking at just the headline inflation. We’re focusing a bit more on core inflation, which chips out the more volatile elements in prices. And then we’re also focusing on this inflation based on the consumer basket of the lowest 30% of households,” he added.

At the same time, the Intergovernmental Group of Twenty-Four (G-24), which the Philippines is a part of, noted that developing countries’ central banks now assume a “critical balancing role” as energy shocks heighten stagflation risks.

“The central banks have a balancing act,” Olawale Edun, G-24 chairman and Nigerian Finance minister, said at a press briefing on Tuesday. “They have a really important role to play in calibrating and helping to steer the economy safely through this current energy crisis and geopolitical tensions.”

However, Akhtar Javed, G-24 first vice-chairman and executive director of the State Bank of Pakistan, said growing pressures from the energy crisis are making it “really difficult” for monetary authorities to strike a balance between taming inflation and boosting growth. 

“(T)his is a challenging time for the central bank, and especially the G-24 countries, which were already facing some pressures because of the tariffs and other related things. But this regional conflict has also put further pressures, and it’s really difficult for the central banks to strike a balance,” Mr. Javed said. 

G-24 Secretary Iyabo Masha said central banks should continue to stand pat as monetary policy tightening will have limited effects on supply-driven shocks. 

“What we’re seeing is that it’s mainly supply-side constraints on oil production, and supply-side constraints do not respond well to monetary policy like interest rate hikes,” she said.

“So, I will say that unless central banks see that some of these inflationary pressures are going into wages (and) are showing up in real growth, they should, at least on balance, wait and see and see how things evolve. But of course, everything has to be in a data-dependent manner,” she added.

This post has been updated.

In 2015, construction workers plowed through an abandoned gas station in southeastern San Diego to make way for a new, temporary fire station.  

The site, which would house a fire engine and an ambulance, was opening to improve emergency response times in the area after our reporting revealed people died of gunshot wounds and overdoses because emergency responders came too late. 

Then-Mayor Kevin Faulconer applauded the city’s efforts at a press conference outside the soon-to-be station in 2015. He made a bold promise: “In two to three years, we will begin building a permanent fire station right here on this very spot.”   

That never happened. Instead, Fire Station 51 is still a temporary fire station. The fire truck sits under a large tent and firefighters’ living quarters are a mobile trailer. 

George Duardo, president of the San Diego City Firefighters IAFF Local 145, has worked more than 100 shifts as a firefighter at Fire Station 51. He said it does not meet the standards of a “modern fire station.” 

Duardo said the station’s vinyl structure has slowly degraded, the station lacks enough bathrooms and needs an additional engine to fight brush fires. And Councilmember Henry Foster, who represents the area, says city officials prioritized other areas to build stations.  

Officials from the city’s Fire-Rescue Department said funding challenges have prevented the city from building a fire station, but that the current station provides the same level of service as other fire stations.  

“Though we keep hearing the word ‘temporary,’ I can assure you that Station 51 provides the same level of service as any of our other fire stations,” said Assistant Chief Theodore Moran in an interview with Voice. “The facility itself does not at all play into the service that we’re providing.”  

They also say emergency response times improved in the area after the station opened, but Fire-Rescue data shared with Voice of San Diego reveals response times and incident calls, in general, are higher today. 

Fire Station 51 is in the southeastern San Diego neighborhood of Skyline, a residential area surrounded by canyons. The neighborhood’s population is a majority of Black and Latino middle-class families. 

In 2011, a study identified Skyline as one of the top five neighborhoods with the highest risk of delayed emergency response times in the city.  

In response to the report, the San Diego City Council passed a plan to build five fire stations over the next five years in areas they considered to be a priority. Two years later, Voice reported that officials didn’t build the stations. Our reporting showed residents died when paramedics didn’t arrive in time to save them.  

City officials promised to do better and put funding toward two new fire stations, including one in Skyline. The estimated cost to build a permanent station in 2013 was approximately $13 million. Two years later, city officials opened the temporary Fire Station 51.  

“I haven’t received any clear information as to the why,” said Foster in an interview with Voice about building a permanent fire station. “What I’m seeing instead is an indication that this is an equity issue and it appears decisions have simply been made to prioritize other areas, which needs to change.” 

The city built other fire stations in that time. This includes Fire Station 2, opened in 2018 in Little Italy for $15 million. Fire station 50 also cost $15 million and opened in 2020 in University City. City Heights also got a new and improved fire station in 2018.  

In 2024, city officials opened the city’s “most environmentally friendly” fire station in La Jolla. UC San Diego covered most of the $22 million project and the city paid for a $2.1 million electric fire engine.  

Duardo said the station’s vinyl structure has degraded over time with the sun and elements. He said in the summer, the temperature in the tent that houses the fire engine and equipment can get up to 120 degrees. While they haven’t experienced significant flooding, he said they do get streams of water coming into the tent when it rains.  

“Having any degree of moisture – even though it really only happens during the rain, is not ideal by any means,” he said.  

He worries about how the weather can damage their equipment.  

He also said the station only has two bathrooms, which can create challenges as people are getting ready to start their shift. 

“As people come and people go, bathrooms are really important,” he said. “Enough showers are really important. A place where you can clean your equipment, get carcinogens off your protective equipment… modern fire stations facilitate that.” 

He also said with a permanent fire station, they could add an additional engine to solely fight brush fires in the area. 

Without that, he said he’s concerned about the areas above and adjacent to Fire Station 51 which include Encanto and Skyline. 

 “If you were to take Imperial all the way out and it turns into Lemon Grove Avenue — it’s everything from the end of Imperial to the 94, drive that whole area, there is no fire station in that neighborhood,” he said. 

He said these rural areas have big houses, few fire hydrants, and canyons full of brush. The other closest station would be Fire Station 12 about three miles west in Lincoln Park, or Fire Station 26, about five miles away on the other side of the 94 freeway near Chollas Park.  

“ My biggest fear is because it’s [southeastern San Diego] at the periphery of the city, and there’s a lack of fire stations and coverage… It is gonna be very hard if there were to be a canyon fire in through there,” he said. 

Candace Hadley, spokesperson with San Diego’s Fire-Rescue Department, said Fire Station 51 “is a fully operational station.” 

She said the fire engine, personal protective equipment lockers and exercises space are housed “in the sprung structure designed for long-term to permanent use.”  

When firefighters work their shifts, they stay inside the mobile trailer which has individual sleeping quarters, restrooms, a day room and kitchen.  

Moran said the most important thing is having a fire engine in that area.  

“We were able to fill that gap by identifying that location, putting in the temporary facility, knowing that funding had to have been secured and identified in the future,” he said. “We would love to build a fire station overnight or within a year. Sometimes that’s just not feasible. Really what’s important to us is providing that service to the community where we showed a need for it.”  

In 2011, the city’s emergency response time goal was six minutes, in line with national standards. This includes one minute for dispatch, one minute for the crew to leave the station, and four minutes to travel to the incident.  

Our reporting from 2013 found that nine times out of 10, the department couldn’t meet that goal even half the time. Several months later, Fire-Rescue relaxed response times to seven minutes and 30 seconds. Fire responders aimed to arrive at medical emergencies in that time frame, nine times out of 10. 

Fire-Rescue data shared with Voice shows emergency response time improved in the Skyline area after Station 51 opened in 2015. 

From 2012 to 2018, emergency response time decreased by an average of 27 seconds, from five minutes and 53 seconds to five minutes and 26 seconds. Echo-level calls, or the most critical calls, decreased by 30 seconds. 

However, additional Fire-Rescue data reveals that on average, emergency response times in Skyline are higher compared to when the station opened 11 years ago. 

The average response time in 2015 was five minutes and 34 seconds. In 2025, that went up 11 seconds, to five minutes and 45 seconds. 

Hadley said incident calls are up by approximately 27 percent citywide compared to 2015, and in Skyline, specifically, there has been a 19 percent increase. 

“There are so many variables in what can affect our response times and our response or the volume of responses that we receive. I would say in layman terms there’s really not a solid predictor of whether calls are gonna increase or decrease,” said Moran.  

Moran said things like weather, topography, and distance to the incident can affect response times. 

“Is it hot and dry and windy out — and now there’s a vegetation fire in the area that’s pulling resources that’s obviously gonna affect the response time for medical aids that occurred during that other emergency.”  

But a recent report by the city auditor’s office shows Fire-Rescue did not meet its current arrival time standard of six minutes and 30 seconds largely due to slow turnout times. Turnout times are the amount of time it takes for a crew to leave a station after receiving an emergency dispatch.  

According to the report, only 69 percent of fire units in District 4 — where Station 51 is located — arrived within the city’s standard arrival time. between fiscal year 2023 and fiscal year 2025. 

In a statement, Duardo said the audit does not consider budgetary challenges faced by the fire department. 

 “This ‘audit’ does not take into account the significant underfunding and understaffing that’s been plaguing San Diego Fire-Rescue for years — impacting response times, plus exhaustion and burnout for the firefighters we count on to be there when lives are on the line.” 

Councilmember Foster still voiced concerns about the station remaining temporary.  

“When you have poor facilities, over time that can lead to other health issues. That creates gaps and issues with staffing,” he said. 

It’s unclear when the permanent Fire Station 51 will be built. 

In 2013, then-interim Mayor Todd Gloria announced a multi-million-dollar bond to fund the permanent fire station and other infrastructure projects. This included $1 million toward funding design plans for the station. Fire-Rescue and City Planning Department spokespeople told Voice to file a public records request for information about the money.  

City officials completed a design for a permanent station in Skyline in fiscal year 2026. The project is still pending funding. When Fire Station 51 first opened, the temporary station was a quicker and cheaper solution to reach underserved communities than building new permanent fire stations. Today, the cost to build Fire Station 51 has more than doubled to nearly $28 million according to the Fire-Rescue 2025 budget.  

“In the meantime, necessary repairs and maintenance at the existing facility will continue to ensure uninterrupted service until construction of a permanent station can begin,” said Hadley in an email statement to Voice.  

At a Feb. 19 meeting on the city’s capital infrastructure planning outlook, city officials shared fire stations have a $273.9 million shortfall of funding over the next five years.  

Last year, the city had to close a $300 million budget deficit. We asked Fire-Rescue officials if they would consider adding more temporary fire stations like Fire Station 51 around San Diego to fill coverage gaps. 

They said there’s no current plans to do that.  

“The personnel cost is really the largest expense of a fire station,” said Moran. “We’re zeroing in on the term temporary, but temporary doesn’t necessarily mean cost saving on a operational standpoint.” 

San Diego Mayor Todd Gloria is proposing a $27 million hike in funding for the Fire-Rescue department with a budget of up to $547 million this year, the Union-Tribune reported. While the increase would help fund overtime and staffing to meet response time goals, the department still faces cuts.  

Correction: This post has been updated to remove a paragraph that misstated Henry Foster’s previous position at the city of San Diego.

The post City Officials Promised to Open a Permanent Fire Station in Skyline. 11 Years Later Firefighters Are Still Running Calls Out of a Tent  appeared first on Voice of San Diego.

In the early 2010s, people were dying of gunshot wounds and overdoses in one southeastern San Diego neighborhood because emergency responders came too late. 

The mayor back then, Kevin Faulconer, declared the city would build a fire station in Skyline to help address emergency response times. More than a decade later, a fire truck is instead sitting under a large tent and firefighters are sleeping in an adjacent mobile trailer. 

The San Diego Fire-Rescue Department blames city funding woes for the unfinished promise, reports our Mariana Martínez Barba. But firefighters assure residents that, although their resources are being stored under a vinyl structure, the temporary fire station provides the same level of service as other fire stations. 

Not everyone is ok with the tent though. The president of the firefighters union and Skyline’s city councilmember both think the structure is problematic. 

Emergency response times improved after the makeshift station opened in 2015. Yet, today response times and incident calls are worsening, according to data shared with Voice of San Diego. 

Read the full story here. 

Trump Endorses Jim Desmond for 48th Congressional Seat

President Donald Trump threw his support behind San Diego County Supervisor Jim Desmond who is vying to take over the 48th Congressional District seat being vacated by Darrell Issa.

Desmond “WILL NEVER LET YOU DOWN,” Trump wrote in a social media post on Tuesday. 

“A Brave U.S. Navy Veteran, Jim knows the Wisdom and Courage required to Defend our Country, Support our incredible Military/Veterans and Ensure PEACE THROUGH STRENGTH,” Trump wrote on social media, according to reporting from the Union-Tribune. 

Shortly afterward, House Republican leadership including House Speaker Mike Johnson also endorsed Desmond. He’s running against a crowded field of Democrats vying for a seat made newly competitive under redrawn congressional maps by the State Legislature. 

Ammar Campa-Najjar, who’s running on the crowded Democrat ticket, wrote on social media that Trump’s endorsement is a “kiss of death” for Desmond.

Read the full story here. 

County Hires $10K-a-Month PR Firm Amid Contractor Scandal

The county last month hired a public relations firm as it grappled with the fallout of a criminal misappropriations case involving a former county contractor. 

A three-month, $30,000 contract with Chula Vista-based PRM Consulting signed March 16 calls for the firm to deliver as needed “full-service comprehensive public affairs services” including consulting, media training for county staff and project management. 

A county spokesperson said PRM Consulting will help the county with multiple projects – and did not single out the Harm Reduction Coalition fallout. 

“The county has an as-needed contract with a public affairs consultant to support public information and outreach across county communications activities,” a county spokesperson wrote. “It is not limited to a specific topic or issue.”

Read more here. 

In Other News

• The Trump administration has turned San Diego into a deportation hub. Human Rights First documented nearly 120 deportation flights out of San Diego International Airport and Marine Corps Air Station Miramar last year. That’s a massive increase from 2024, when there was not a single deportation flight out of San Diego. (KPBS)
• The board of directors of the Del Mar Fairgrounds abruptly fired the fairgrounds CEO Carlene Moore in a closed session meeting Tuesday. Moore’s tenure was dogged by controversy. The board appointed board member Sam Nejabat as interim CEO. (CBS 8)
• Sweetwater Union High School officials project the school district’s financial reserves will run dry in about three years. The county’s second-largest district is relying on reserves to balance its budget amidst enrollment decline and rising costs. (inewsource)
• San Diego’s Prebys Foundation and the Downtown San Diego Partnership are pressing the city to adopt an action plan for a revamped Civic Center. They recommend the city form a joint powers authority with partner agencies to advance the redevelopment of the decaying city buildings. (Union-Tribune)
• State and city leaders announced a new bill to revive California’s dying downtowns with housing. The bill would streamline the approval process for building affordable housing and mix-used developments near downtown transit hubs. The bill would also create a $500 million revolving fund offering low-interest loans to developers. (KPBS)
• A San Diego couple pleaded guilty to stealing mail from the post office and mailboxes from Bonita to Pacific Beach and using it to impersonate victims at banks and cash stolen checks. (Fox 5)

The Morning Report was written by MacKenzie Elmer and Mariana Martínez Barba. It was edited by Will Huntsberry.

The post Morning Report: Skyline’s Fire Station Is a Tent — Still appeared first on Voice of San Diego.

Last month, I watched Mayor Todd Gloria take the stage at a youth mentoring event, outlining for the crowd how important youth programming is to the city’s future.

Now, only a month later, he is threatening to completely cut the office that serves the young people he was speaking to. For Mayor Gloria, young San Diegans appear to be convenient backdrops for social media posts. While he is happy to smile for the camera, his proposal for the city’s budget tells a different story. In Gloria’s San Diego, children are treated as political clout pawns, not priorities. You cannot claim to champion youth in a press release while systematically defunding the office dedicated to their success.

If the mayor ever wants to stand alongside young San Diegans again and promise he’s building them a brighter future, then we insist he actually take action on prioritizing children and youth by reinstating the Office of Child and Youth Success.

If this storyline sounds familiar, it’s because it happened last year when the mayor proposed closing all libraries on Sundays and Mondays, slashing recreation center hours, and reducing youth tutoring programs. While the San Diego City Council reversed some of those cuts, the Office of Child and Youth Success was still hit. The mayor stripped the Office of Child and Youth Success of its independence when he moved its executive director into the Library Department. He watered down their impact by downgrading the director to a program coordinator, leaving them out of critical conversations. And he placed them in a department that has historically been targeted for cuts during challenging fiscal years. It was a strategic move designed to prepare residents for what is happening now: the total elimination of this office.

The mayor will likely cite a “tough budget year” as an explanation. It’s no secret that the city faces a severe structural budget deficit, as it’s pretty much always a topic of conversation. But, curiously, the “shared sacrifice” he demands never fully reaches the San Diego Police Department’s consistently bolstered budget or the millions poured into smart streetlights and surveillance technology.

When an office that brings in millions of dollars in external revenue is on the chopping block while police overtime remains unchecked, it’s not a fiscal issue, but an issue of character. Gloria’s budget document tells us everything we need to know about his priorities: he’d rather spend millions of dollars surveilling San Diegans than pay even a penny toward caring for youth.

The Office of Child and Youth Success was established in 2022 after decades of advocacy, and in just four years, it has transformed that community vision into tangible progress for young people, children and working families.

Despite its modest $350,000 operating budget, the office helped secure $2 million in federal funding this past year to begin implementing the use of city-owned property for child care. That vision, which is still yet to be realized, received overwhelming public support in 2022 when 68 percent of voters supported Measure H, a ballot item that opened the door for child care centers to operate in city parks and recreation centers. 

The office created the city’s first-ever Child & Youth Plan, not through a last-minute, surface-level survey, but through a deep, community-rooted input process. This plan was written by the Office of Child and Youth Success alongside hundreds of young people and families who shared their needs and demands. The office also supported the successful reinstatement of the city of San Diego’s Youth Commission. When that Commission finally has enough members to meet in January for the first time in a long time, it was the result of the heavy lifting, mentorship, and logistics by an office the mayor deems disposable.

In my time at Youth Will, I have seen the gap between City Hall and the communities it serves. Last year, in partnership with the Office of Child and Youth Success, we held seven Your City, Your Voice workshops in communities where civic engagement has historically been silenced by neglect. We met young people who didn’t know their Council District, let alone how to influence a budget or attend a City Council meeting. After just one session, these same youth felt more confident in engaging with the city and being a part of essential decision-making that impacts their lives. While Youth Will remains committed to this work, we cannot bridge this gap alone. Without an institutional partner like the Office of Child and Youth Success, the city isn’t just cutting a line item, but intentionally dismantling the bridge between local government and its youth leaders.

The mayor’s past decisions demonstrate that he does not fully understand the importance and opportunities of the Office of Child and Youth Success, but the community certainly does. With over 30 community-based orgs signing on to save the office, San Diego demonstrates that increased connection to City Hall through OCYS matters. If we lose the Office of Child and Youth Success, we lose institutionalized prioritization, success, and well-being for the 20 percent of our residents who are under the age of 24. The City Council must find the courage the mayor lacks and reject these cuts, restoring the Office of Child and Youth Success to its independent status. Every year, we fight hard for youth, children, and working families, and this year is no different. We need everyone in this fight, because when our young people and most vulnerable residents suffer, we all suffer.

Claire Snyder is the co-executive Director of Youth Will and a long-time community organizer who has spent years advocating for young people across San Diego.

The post Stop Balancing the Budget on the Backs of Our Youth appeared first on Voice of San Diego.

For over a year, Albert Einstein Academies has been rife with conflict. The rolling controversies, and community members’ perception that the charter network’s leadership hasn’t done enough to mend the rifts, have soured the relationship between some administrators, staff and parents.  

While many parents and teachers have focused their ire on Einstein’s superintendent, they’ve also identified others to blame – the charter’s board. Now, a committee has proposed changes to the board’s formulation that members hope will give the community a greater voice in decision making.  

Einstein is a charter network known for its international baccalaureate and language immersion programs serving nearly 1,500 students at an elementary and middle school. A high school is also under construction.  

The trouble at Einstein started with parent uproar over the watering down of its trademark dual language immersion program. It accelerated with the abrupt firing of a beloved principal, a decision that helped inspire a petition of no-confidence in Superintendent David Sciaretta. Most recently, Sciaretta came under fire for alleged misspending on his charter issued credit card, renewing calls for him to step down.  

Frustration with Sciaretta runs deep with some in the community, but many say the charter’s board is just as much at fault. They say board members have failed to hold Sciaretta accountable and that the board doesn’t actually represent the interests of the community. 

Unlike boards at public districts, Einstein trustees are not elected by community members. Instead, they’re screened by an internal committee made up of staff and families that makes recommendations and then appointed by the board itself. And since board members also don’t have term limits, they can stick around indefinitely. 

“The lack of shared governance has compounded this energy that anything that comes out of a board trustee’s mouth is unreliable, invalid and serving to protect the superintendent,” Sarah Peterson, an Einstein parent and educator told me earlier this year.  

To deal with the frustration, the board convened an ad hoc committee on shared governance comprised of parents, teachers and a current board member. Peterson was one of those parents. The committee, helmed by Trustee Christopher Beesley, was tasked with coming up with changes to the board’s structure that could rebuild trust.  

The committee crafted a survey that was sent out to all families of Einstein students and staff members at each of the two charter schools. The response rate was low – only about 150 of the about 2,500 people who received the survey participated – but the responses were strikingly uniform. 

More than 83 percent of respondents were not confident that the “current board structure effectively reflects the perspectives of the [Einstein] community.” Concerns about transparency, the lack of board elections, diverse representation and the need to foster trust dominated written responses. 

“The school has deteriorated because of the ever-growing distance between upper administration and the people who actually make the school,” one parent wrote. 

“We are losing families right now. Shared governance would rebuild trust and transparency and allow for more informed decision making,” wrote another. 

On Tuesday, members of the committee presented their suggestions to the board they hoped to remake. They had a couple of immediate recommendations and even more long-term ones.  

The immediate recommendations were to fill the board’s two vacant seats with an elected teacher and parent member. Per the suggestion, each member would be elected by their peers – teachers electing a teacher member and parents electing a parent member. The committee urged the board to adopt a resolution that night that would commit to moving forward with that change. 

“Taking immediate steps to fill the two vacant seats with an elected parent and an elected certificated staff member gives concrete evidence that the board hears, values, and respects the community’s voice,” the committee wrote in its presentation. 

Long term, they suggested the board consider adopting term limits and staggered appointment periods, ensuring regular turnover for trustees. They also floated the idea of increasing the number of seats from seven to nine to potentially create space for additional staff or parent trustees and creating a seat for a student trustee whose votes would be advisory, similar to San Diego Unified’s student trustees. 

“[Einstein] feels broken right now. We feel like we’re at a crossroads,” said Mary Findlay, a teacher on the shared governance committee during the presentation. “We can come back together and hear each other, and maybe we won’t all agree but just to feel heard and feel that our voice matters, I think that will go a long way.” 

Trustees pumped the brakes on immediate adoption of changes, but their concerns were largely about process: How will the elections work? Who will be eligible to vote? How would the organization put together ironclad recusal rules to prevent conflicts of interest?  

The committee relied on conversations with leadership at Helix High School, a charter school that’s long included parents and staff on the board, to develop its recommendations. During the meeting, Einstein’s trustees asked the members to also look into how other charter’s approached the practice. 

Despite the concerns, trustees seemed uniformly receptive to the changes. They wanted to see the committee to bring forward more specifics before they voted to approve them. And some trustees, like the committee, hoped to get a new system in place sooner rather than later.  

“Genuinely, I too would like to move forward with this,” said Trustee Christiana Gauger. “I’m not saying ‘We can’t go forward until everything’s perfect and ironclad,’ but I think we need to – for that trust and transparency – have these bigger conversations knowing that whatever we do is going to be a little clunky initially.” 

Sabrina Bochen, a parent who’s long been critical of Einstein’s leadership, was one of the parents included on the committee. She said she was initially skeptical that anything would come of the committee, but was pleasantly surprised with the final proposal. She was disappointed that the board didn’t immediately commit to the changes, but wrote in a text message she was “cautiously optimistic” members were serious “about becoming less insular.” 

“Getting agreement to elect two new family/staff board members before the end of the school year would have been an important symbolic gesture to the [Einstein] community,” Bochen wrote. “Many [Einstein] families wonder if the board is truly prepared for change, given the fact that they still haven’t removed or suspended the superintendent, even though he misappropriated school funds.” 

What I’m Reading 

San Diego Unified’s lil bitty payout: Two weeks ago, San Diego Unified board members did something unusual – they unanimously voted down a $1.4 million paycheck.  

That payout, offered by the City of San Diego, is part of complex legal maneuvering wherein the city is attempting to maintain control of Liberty Station and, importantly, prevent the complex’s majority leaseholder from wresting ownership away. But to accomplish that, the city would need the agencies which benefit from tax revenue generated by Liberty Station to pass up future revenue in exchange for the aforementioned payouts. 

“It’s not that I don’t trust the city, but I don’t trust the city,” Trustee Sharon Whitehurst-Payne said of the payout offered, as the Union-Tribune reported.  

The board’s decision led to some trash talking of the district by some former city folk. Turns out it was for naught. Last night, the board flipped its vote and unanimously approved the payout.  

Hackaholic: Last year, a handful of local school districts got nightmare news: PowerSchool, a software system used by school districts to store sensitive student information, had been hacked. Info like birthdays, social security numbers and medical records of students at three local districts – Santee, Ramona and Rancho Santa Fe – had been obtained by the hacker as part of what was one of the largest breaches of school information in history.  

The hacker, then-19, was later arrested in his dorm room. Now, in an interview with ABC News, he’s speaking about his experience as a hacker and … it sounds kind of awesome?  

“It’s indescribable the adrenaline you get when doing something like that. It’s way more than driving 120 miles per hour on like a back road or a highway,” hacker Matthew Lane told the outlet. 

Grossmont Union sued (again): One of San Diego County’s most frequently-sued districts is (drumroll, please) getting sued again! The first of two recently filed suits alleges the district board’s conservative majority banned books featuring queer themes and retaliated against staff who opposed those efforts. The second alleges a special education director at the district was victim of a “coordinated campaign of discrimination, harassment and retaliation,” because of her LGBTQ+ identity and advocacy. 

What We’re Writing 

San Diego Unified leaders have advertised a fix to the plumbing of the School of Creative and Performing Arts in three successive bond measures dating back to 2012. Still, despite having raised nearly $12 billion dollars from those measures, a comprehensive fix never came, leaving the school to face successive leaks and water shutoffs. As the district begins to plan for another bond measure, SCPA may have to wait years more for work on its plumbing.  

What We’re Doing

Are you way (way way) into San Diego County politics? Do you want to watch skits skewering local electeds with nerdy inside jokes? Do you like eating dinner next to the aide that writes a Chula Vista councilmember’s tweets? Well, we’ve got the event for you.  

We still have a few tickets for Off the Record 2026. The Met Gala of local civic nerdery is an exclusive night filled with community leaders, politicians and newsmakers of all types and despite my ribbing, it is pretty fun. It features everything from pre-recorded skits to roasts of local notables and even a pretty good dinner. Best part about it is we take away your phone at the door. (Seriously. I’m not joking.) 

Get your tickets now.  

The post The Learning Curve: Einstein Charter’s Board May Soon Look Different appeared first on Voice of San Diego.

“Last year’s capex was around P16 billion, and for this year, the priority is really project development, which would account for roughly 60-70% of our capex for the year,” CLI Deputy Chief Financial Officer Renz Anthony L. Canete said during a briefing on Tuesday.

The listed developer reported consolidated revenues of P18.5 billion for 2025, supported by project completions, revenue recognition, and steady construction progress across developments, according to a regulatory filing.

Excluding lot sales, real estate sales and related finance income rose 10% to P17.3 billion from P15.8 billion a year earlier, remaining the company’s main revenue driver.

CLI ended the year with residential reservations of P24.6 billion, up from P16.9 billion in 2024, supported by continued demand across its portfolio.

“Our record sales reflect a clear focus on building where demand is real and delivering on our commitments. Even through periods of volatility, we continue to deliver as planned and build developments that meet market needs and create lasting value for the communities we serve,” CLI Senior Executive Vice-President and Chief Operating Officer Jose Franco Soberano said.

CLI launched more than 4,500 residential units during the year, with a combined value of about P31.3 billion across Cebu, Cagayan de Oro, Palawan, and General Santos.

Projects such as One Manresa Place in Cagayan de Oro and Casa Mira Homes Gensan recorded strong take-up, contributing to a 91% sell-out rate across completed, ongoing, and newly launched developments.

Recurring income rose 57% to P735 million from P467 million in 2024, driven by higher contributions from hospitality, leasing, and management fees.

Hotel revenue increased 79% to P431 million, supported by higher occupancy and an expanded room inventory of 797 units from 640. Leasing revenue grew 40% to P227 million as gross leasable area expanded to 71,000 square meters from 41,000 square meters. Management fees also rose 21%.

As part of its expansion, CLI said it has secured a 70-hectare property in Dasmariñas, Cavite for a planned township development, marking its entry into the Luzon market.

The property will be developed into a mixed-use township with a predominantly residential master plan expected to deliver about 6,000 homes in multiple phases, alongside commercial, institutional, and estate components.

The site is located along Governor’s Drive and is near the Cavite-Laguna Expressway, placing it within a key growth corridor in the Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) region. Initial phases are targeted for launch between 2027 and 2028.

The company said the project will target economic and mid-market segments and is designed as a self-sustaining, integrated community.

“As we deepen our presence in VisMin and enter Luzon, we remain guided by our mission to deliver masterful real estate experiences that uplift lives, and our vision of becoming the country’s most trusted developer,” CLI Chairman and Chief Executive Officer Jose R. Soberano III said.

The company has 132 projects across residential, office, hotel, co-living, co-working, mixed-use, and township developments in 18 cities in the Visayas and Mindanao.

At the local bourse, CLI shares fell by 0.79% or two centavos to P2.50 each on Tuesday. — Alexandria Grace C. Magno and J.C.A. Gonzales

In a credit opinion on Tuesday, Moody’s cut its Philippine gross domestic product (GDP) growth projection to 4.9% this year from 5.5% previously. This is below the government’s 5-6% target for 2026.

For 2027, Moody’s trimmed its GDP growth forecast to 5.3% from 5.6% previously. If realized, this will be lower than the economic managers’ 5.5-6.5% target range for 2027.

“The conflict in the Middle East has increased downside risks to the Philippines’ economic outlook by raising global energy prices and external cost pressures,” it said.

Moody’s said it expects domestic demand and industrial activity to remain subdued due to high oil prices and fuel shortages.

“Higher energy and broader import costs are expected to erode real incomes amid high pass-through, dampen consumption, and weigh on industrial activity, reinforcing a firmer inflation trajectory,” it said.

Moody’s also noted that trade uncertainty and climate risks may also dampen economic activity.

“Our baseline assumes that the recovery in public investment will be gradual and begin only in the second half of 2026, as the government continues to take concrete measures to address the temporary slowdown. Meanwhile, higher energy import bills amid rising prices and peso depreciation, together with slower remittance growth, are expected to widen the current account deficit,” it said.

The Philippines is currently under a year-long national energy emergency as the Middle East crisis threatened its fuel supply. The government rolled out targeted subsidies and implemented energy conservation protocols.

“Together, these measures should mitigate the risk of significant supply disruptions,” Moody’s Ratings said.

Moody’s also hiked its average inflation forecasts to 3.7% in 2026 from 3% previously, and to 3.5% in 2027 from 3.2% previously, as oil prices remain elevated due to the Middle East conflict.

Moody’s forecasts are below the Bangko Sentral ng Pilipinas’ (BSP) 5.1% inflation projection this year and the 3.8% projection for 2027.

Inflation quickened to a nearly two-year high of 4.1% in March, breaching the BSP’s 2-4% target amid rising fuel and transportation costs.

“Inflation is expected to remain above the BSP’s target range, reducing policy flexibility and increasing the risk of policy tightening, even as softening growth and a negative output gap support a broadly accommodative stance in the near term,” Moody’s said. 

The BSP maintained its policy rate at 4.25% in an off-cycle meeting on March 26, noting that emerging inflation pressures are supply-driven, in which policy adjustments have little impact.

However, BSP Governor Eli M. Remolona, Jr. has said they are ready to act as needed to keep inflation expectations anchored and temper the potential effects of the oil price shock. The next policy review is on April 23. — J.I.D.Tabile

LPGMA Founder Arnel U. Ty said the nationwide demand plunged by 30% month on month in April, mainly due to high prices of LPG products.

Mr. Ty told reporters on Tuesday that the decline this year has been more pronounced than in previous years when LPG demand would drop by 15% in the summer months of March, April and May.

“That’s the reason why the inventory of LPG right now increases from 35 days to 50 days — because of demand reduction,” he said.

Mr. Ty noted consumers, especially those in rural areas, have shifted to charcoal and firewood for cooking materials as LPG costs surge.

Aside from diesel and gasoline, the Philippines is also a net importer of LPG. It sources 91.4% of its LPG supply from Asian countries.

The Middle East conflict has sent global oil prices soaring. Local LPG prices jumped by as much as P403 this month, pushing the costs to around P1,600 per 11-kilogram (kg) cylinder.

In an unexpected move, President Ferdinand R. Marcos, Jr. on Monday suspended excise taxes only on LPG and kerosene to cushion the impact of rising fuel costs on households, without halting levies on gasoline and diesel.

Scrapping excise tax on LPG is expected to bring down prices by P3.36 per kilo or P36.96 per 11-kg cylinder.

“We already implemented P3 reduction in our members’ store, composed of around 20% of the total market. So, they (consumers) can get immediate relief from the suspension of the excise tax,” Mr. Ty said.

Since the current inventory was already charged with excise tax, he said that the group may have to “absorb” costs amounting to between P50 million and P70 million.

“Because we can recoup it when the time comes that excise tax in the future will be reinstated,” Mr. Ty said.

To further beef up the country’s LPG stockpile, the Philippines has moved to procure from other countries through a government-to-government arrangement.

Mr. Ty said the government and the private sector have secured around 22 million kilos of LPG, which is set to arrive between May 15 and June 1. Around 44 million kilos of LPG is still under negotiation. — Sheldeen Joy Talavera

SUSPENDING EXCISE TAXES on diesel and gasoline would only provide limited relief compared to lifting levies on liquefied petroleum gas (LPG) and kerosene as the resulting decline in pump prices would be small, the Department of Finance said.

“The Development Budget Coordination Committee (DBCC) has determined that suspending excise taxes on diesel and gasoline would not likely provide meaningful relief, as any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics,” said Finance Secretary Frederick D. Go in a statement on Tuesday.

In contrast, suspending the excise taxes on kerosene and LPG would directly ease the burden on Filipino families and small businesses by helping them meet basic energy needs, he said.

On Monday, President Ferdinand R. Marcos, Jr. approved the suspension of excise taxes on LPG and kerosene while keeping levies on gasoline and diesel unchanged.

Republic Act No. 12316 grants the President the authority to suspend or reduce excise taxes on petroleum products. Excise tax is a tax imposed on the production, sale or consumption goods manufactured or produced in the Philippines and to imported goods.

“This relief is focused on the most vulnerable,” said Mr. Go, citing savings of around P36.96 per 11-kilogram cylinder for LPG and P5.56 per liter of kerosene due to the suspension.

The Philippine Statistics Authority’s 2023 Family Income and Expenditure Survey showed that 48% of total kerosene consumption is attributed to the bottom 30% of households, while 55.7% of LPG users come from the bottom 70%.

“This measured and targeted response is designed to deliver immediate relief, ensuring that support reaches those who need it most, while preserving fiscal space to sustain essential public services and respond to an unpredictable global environment,” Mr. Go said.

The Philippines is under a one-year national energy emergency, giving the government expanded powers to secure fuel supplies and shield the economy from rising oil prices amid the war in the Middle East.

FOREGONE REVENUES
The government is anticipating around P4.1 billion in foregone revenue over the next three months due to the suspension of excise taxes on LPG and kerosene, Finance Undersecretary Karlo Fermin S. Adriano told a news briefing at the presidential palace on Tuesday.

But the impact could be partly offset by about P13 billion in additional value-added tax (VAT) collections if crude oil prices average $100 per barrel over the three-month period, he said.

Mr. Adriano said the government would have incurred P43.6 billion in foregone revenues if the President had also approved the suspension of diesel and gasoline excise taxes.

He noted the excise tax on diesel is only around P6 per liter, which would have a “relatively small” impact on the current diesel price of around P100 per liter.

“If we eliminate [excise tax on] diesel, the ones who benefit the most are the ones who consume the most, which is the richest,” Mr. Adriano added in Filipino. “That’s why the DBCC’s recommendation is P10 [diesel discount for public utility jeepneys], which is targeted at those who are most affected by our current situation.”

Francisco Cid L. Terosa, an associate professor and former dean of the School of Economics of the University of Asia and the Pacific, said that food remains the largest household expense, making tax relief for LPG and kerosene more impactful.

“From an economic standpoint, suspending excise taxes on LPG and kerosene is more effective in easing consumer costs because both are directly used by individuals and households on a daily basis,” he said in a Viber message.

While suspending excise taxes on gasoline and diesel could lower transport costs, Mr. Terosa said it would directly benefit those who drive vehicles daily.

Jose Enrique “Sonny” A. Africa, executive director of the think tank IBON Foundation, however, argued that transport costs are embedded in the prices of goods and services.

“The Finance department’s ‘economists’ are being disingenuous. They argued that the excise taxes on diesel and gasoline weren’t removed because poor households don’t consume much of these — unlike LPG and kerosene,” he said in a Viber message.

“But they didn’t mention how most fuel is consumed by commercial users like trucking, inter-island shipping, and other transport services, so the fuel tax is passed on to the price of rice, vegetables, and fish; to jeepney and tricycle fares; and to other goods and services,” he added.

Mr. Africa said that diesel and gasoline account for 73% of petroleum product demand, while LPG and kerosene account for just 13%.

“Oil excise tax collections are some P400 billion annually — there’s a 100% chance that the transport sector or poor families won’t get P400 billion in fuel subsidies,” he added.

According to IBON Foundation’s estimates, the poorest family decile pays P442 monthly in oil excise taxes, while the richest decile pays P834 monthly.

“Measured as a share of income, the burden is two to four times greater for the poorest than the richest,” Mr. Africa said.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the estimated revenue loss from the excise tax suspension on LPG and kerosene is “relatively modest and manageable,” especially as it is offset by stronger VAT collections.

“However, the key consideration is duration. If elevated energy prices persist and such measures are extended, the cumulative revenue impact could become more significant,” he said via Viber.

“The move is defensible as a short-term relief measure, but it highlights the need to balance targeted support with fiscal sustainability.”

Noel M. Baga, co‑convenor of the Center for Energy Research and Policy, said the suspension of excise taxes on LPG and kerosene will provide relief to households and small businesses dependent on cooking fuel.

“The President must now impose price ceilings on diesel and gasoline under the Price Act,” Mr. Baga said in a Viber message.

“That is where the crisis is being felt most directly by most people. Excise tax adjustments reduce prices at the margins. Price ceilings address the core problem.”

THE International Monetary Fund (IMF) now expects Philippine economic growth this year to fall far below the government’s target as the oil shock from the Middle East war adds to the impact of a graft scandal that stalled public spending.

The IMF slashed its 2026 gross domestic product (GDP) growth forecast to 4.1% from 5.6% in January, its latest World Economic Outlook (WEO) released on Tuesday showed.

This is way lower than the government’s 5%-6% target and also slower than the 4.4% full-year expansion in 2025, which was a post-pandemic low due to a corruption scandal involving flood control projects.

“Growth in the Philippines is revised downward by 1.5 percentage points for 2026, relative to January, with the war shock compounding the negative base effects from a weaker-than-expected 2025 outturn related to a sharp decline in public investment and confidence,” the IMF said.

Meanwhile, the IMF kept its 2027 growth projection at 5.8%. This is within the government’s 5.5%-6.5% growth goal.

“Risks to growth are tilted to the downside while inflation risks are tilted to the upside, reflecting the risk of a prolonged war in the Middle East, further escalation of geopolitical tensions, and higher trade policy uncertainty,” the IMF said.

Domestic risks stem from the impact of the corruption scandal, extreme climate events, and “weaker-than-expected reform momentum,” it added.

The 2026 forecast for the Philippines matches its expected growth pace for ASEAN-5, which includes Indonesia, Malaysia, Singapore, and Thailand.

For the Southeast Asian economies with specific forecasts in the WEO, the Philippines’ GDP growth this year is expected to trail Vietnam’s 7.1%, Indonesia’s 5%, and Malaysia’s 4.7%. It is only expected to expand faster than Thailand (1.5%) and Singapore (3.5%) this year.

“In several South and Southeast Asian economies, disruptions in the Middle East are expected to reduce tourism and remittance inflows, thereby weakening domestic demand,” it said.

This comes as the IMF also cut its global growth projection for this year as it expects the Middle East conflict to threaten the outlook, with the highly volatile situation also leading it to outline several scenarios depending on how long the war lasts or if it expands further.

Under its reference forecast, which assumes that the war’s duration, intensity, and scope will be limited and mean that disruptions could recede by midyear, the IMF sees the global economy growing by 3.1% this year, down from 3.3% in January. It retained its 2027 forecast at 3.2%.

“The global outlook has abruptly darkened following the outbreak of war in the Middle East on Feb. 28, 2026. The closure of the Strait of Hormuz and serious damage to critical production facilities in a region central to global hydrocarbon supply could cause an energy crisis on an unprecedented scale,” IMF Economic Counsellor and the Director of Research Pierre-Olivier Gourinchas said in the report’s foreword.

“The war interrupted what had been a steady growth trajectory… The duration and scale of the conflict and the time it will take for energy production and transit to normalize after the end of hostilities will determine the ultimate size of the shock to the global economy.”

READY TO TIGHTEN
Meanwhile, the IMF expects Philippine headline inflation to average 4.3% this year and 3.2% in 2027. Both are faster than the 2.8% and 3% estimates it gave following the conclusion of its Article IV Consultation in December last year.

The Bangko Sentral ng Pilipinas (BSP) expects the consumer price index to average 5.1% this year, above its 2%-4% target and last year’s 1.7% outturn as it expects higher global oil prices due to the war to drive up domestic food, fuel, energy, and transport costs. For 2027, its forecast is 3.8%.

Philippine headline inflation already breached the central bank’s goal in March, coming in at 4.1%, which was the fastest pace in nearly two years or since the 4.4% in July 2024 — also the last time that the monthly print was above target. This was also higher than the BSP’s own 3.1%-3.9% forecast for the month.

In the three months to March, inflation averaged 2.8%.

“An accommodative monetary policy stance remains appropriate amid a widening negative output gap; but the BSP should be ready to tighten monetary policy if risks of de-anchoring inflation expectations arise,” the IMF said.

In an off-cycle meeting last month, the Monetary Board left benchmark interest rates unchanged, but said that they remain vigilant about potential price risks amid the war.

BSP Governor Eli M. Remolona, Jr. has said that monetary policy has limited effectiveness against the supply-driven spikes in prices, but added that they are ready to act as needed to keep inflation expectations anchored and temper the potential effects of the oil price shock.

The BSP last hiked benchmark rates in October 2023. Its policy rate now stands at 4.25% following 225 basis points worth of cuts since it began its now-paused easing cycle in August 2024.

The IMF said policymakers will need to find the balance between preserving growth and keeping inflation in check, while also ensuring that they have enough fiscal ammo to support those that will be hit by rising costs due to the energy shock.

“Central banks should be ready to act decisively in line with their mandates. Monetary policy should preserve price stability and be carefully attuned to spillovers from actual inflation to inflation expectations, especially in the medium- to long-term horizon,” the multilateral lender said.

“With the memories of the post-pandemic inflation surge still fresh, second-round effects could possibly be larger than they were in 2021-2022. At the same time, tightening prematurely could be destabilizing, if financial conditions tighten further… or consumer and business confidence declines. Reacting strongly to flexible commodity prices, when supply constraints are present only in the related sectors, brings down inflation fast but risks a recession later.”

Meanwhile, the IMF sees the Philippines’ current account deficit widening to -4.4% of GDP this year from -3.3% in 2025. For 2027, the gap is seen at -3.5% of economic output. Both are bigger than the -3.4% and -3.1% forecasts published in December.

Since last summer, when state officials gave the go-ahead, city workers have cleared homeless encampments on patches of Caltrans-owned land adjacent to freeways nearly 500 times. City workers have cleared one encampment near Imperial Avenue, for example, nearly 70 times. 

And the sweeps aren’t cheap. Since early March alone, the city has spent more than $650,000 on the actions, $400,000 of which was reimbursed by the state. That big spending comes even as the city grapples with a massive budget deficit.

Still, despite the sweeps, the people who live in those makeshift camps are continually returning. For many, they return because they simply have nowhere else to go. 

City homeless shelters are still packed, and placement rates continue to drop. In July, only 12 percent of people who requested shelter in the previous fiscal year received a bed. During the latest fiscal year, the rate has dropped to nine percent. 

“It’s like they’re just hustling us around — it’s like they’re moving cattle,” one man said. “It seems totally unnecessary.”  

Read the full story here.

Environment Report: The Tijuana River’s Toxic Gas Problem

Residents in South Bay woke up Monday morning to news that toxic gas from the sewage-polluted Tijuana River had once again invaded the neighborhoods of Nestor and San Ysidro. 

Unfortunately, it’s news the community is used to. That’s why State Sen. Steve Padilla wants the state to update its standards when it comes to toxic levels of hydrogen sulfide coming from the Tijuana River.

He’s proposing a bill that would lower the danger threshold for hydrogen sulfide, which means local air pollution control districts could alert the public of toxic gas danger much earlier. Research suggests that the current threshold is set too high.

The bill would also require the state to hold public workshops and give more power to air pollution control districts to protect the public from harm, though it doesn’t specify how.

Read the Environment Report here.

Cops and Fire Budgets to Increase — Despite Deficit

Mayor Todd Gloria is proposing to increase the police and fire budgets — even as many cuts are expected, reports the Union-Tribune. 

The city is facing a $120 million budget deficit and the mayor is set to present his full budget on Wednesday. 

In the meantime, news has been dribbling out. The mayor also hopes to increase funding for streetlight and pothole repair, even as general road repair funding would decrease by almost 20 percent. 

Gloria wants to add $27 million to the Fire-Rescue budget and $14 million to the police budget. Even with those minor increases, police and fire will both have to make some cuts. 

But as David Garrick at the U-T reports that will “mean painful cuts elsewhere.” Those cuts haven’t been fully unveiled yet. 

If the last two budget years have been any indication, the City Council may fight Gloria hard on his spending plan. 

• More budget: A tentative deal would give more than 5,000 city of San Diego white-collar workers pay raises, which would be offset by forced one-week furloughs. The furloughs would offset the financial impact of 2 percent pay raises in the contract’s first year, but not the further raises that would come in 2028 and 2029. (Union-Tribune)

In Other News

• An independent review of San Diego City Hall by the San Diego Taxpayers Association reveals misspending and a bloated staff, including an alarming 461 percent increase in the number of middle managers working at City Hall in the last 15 years. The report says the city has consistently approved new positions, salary increases and new programs without properly weighing them against the city’s growing budget deficit. (Union-Tribune)
• Federal immigration data shows local hospitals treated significantly more ICE detainees last year, under the Trump administration, than they did in the year prior, under the Biden administration. (Union-Tribune)
• Law enforcement officials will hold a gun buyback event in San Marcos this weekend in an effort to get unwanted firearms off the streets. (KPBS)

The Morning Report was written by Jakob McWhinney, Tigist Layne and Will Huntsberry. It was edited by Will Huntsberry.

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The county last month hired a public relations firm as it grappled with the fallout of a criminal misappropriations case involving a former county contractor. 

A three-month, $30,000 contract with Chula Vista-based PRM Consulting signed March 16 calls for the firm to deliver as needed “full-service comprehensive public affairs services” including consulting, media training for county staff and project management. The county contract does not mention work on county media strategies tied to the scandal surrounding the Harm Reduction Coalition of San Diego.  

PRM Consulting is led by Tanya Mannes Castaneda, a former Union-Tribune reporter who once served as the Port of San Diego’s spokesperson.  

Voice of San Diego and other news outlets have been digging into the county’s handling of its two contracts with the Harm Reduction Coalition after its former chief operating officer was criminally charged with allegedly misappropriating at least $210,000 in public funds for everything from plastic surgeries to family vacations. 

In response to questions from Voice of San Diego, county spokesperson Tammy Glenn wrote that PRM Consulting will help the county with multiple projects – and did not single out the Harm Reduction Coalition fallout. 

“The county has an as-needed contract with a public affairs consultant to support public information and outreach across county communications activities,” Glenn wrote in an email. “It is not limited to a specific topic or issue.” 

The county’s contract with PRM Consulting allows for an up to six-month contract extension and thus up to $90,000 in compensation. 

The post County Hires $10K-a-Month PR Firm Amid Contractor Scandal appeared first on Voice of San Diego.

President Donald Trump threw his support behind San Diego County Supervisor Jim Desmond who is vying to take over the 48th Congressional District seat being vacated by Darrell Issa.

Desmond “WILL NEVER LET YOU DOWN,” Trump wrote in a social media post on Tuesday. 

“A Brave U.S. Navy Veteran, Jim knows the Wisdom and Courage required to Defend our Country, Support our incredible Military/Veterans and Ensure PEACE THROUGH STRENGTH,” Trump wrote on social media, according to reporting from the Union-Tribune. 

Desmond responded on X.

“Thank you, Mr. President. We’re going to win this race, bring common sense back to California, and make this state affordable for working families again. The people deserve nothing less,” he wrote.

Shortly afterward, House Republican leadership including House Speaker Mike Johnson endorsed Desmond. He’s running against a crowded field of Democrats vying for a seat made newly competitive for that party under redrawn congressional maps by the state Legislature. 

“It’s like Darrell Issa never left, just another rubber stamp,” Ammar Campa-Najjar, who’s running on the crowded Democrat ticket, wrote on social media, calling Desmond’s backing from top Republicans a “kiss of death.”

Palm Springs economist Brandon Riker and San Diego City Councilmember Marni von Wilpert are other Democrats in the race for the 48th.

“Now it’s crystal clear: a vote for Jim Desmond is a vote for more of Trump’s chaos, corruption and rising costs,” von Wilpert wrote in a statement. “Jim Desmond isn’t really running to represent this community, he’s running to represent Trump and that will mean more dysfunction, more inflation, more ICE violence and more reckless foreign wars America can’t afford.”

The post Trump Endorses Jim Desmond for 48th Congressional Seat appeared first on Voice of San Diego.

SUSPENDING excise taxes on diesel and gasoline would only provide limited relief compared to lifting levies on liquefied petroleum gas (LPG) and kerosene as the resulting decline in pump prices would be small, the Department of Finance said.

“The Development Budget Coordination Committee (DBCC) has determined that suspending excise taxes on diesel and gasoline would not likely provide meaningful relief, as any reduction in retail pump prices would be marginal and largely offset by prevailing market dynamics,” Finance Secretary Frederick D. Go said in a statement on Tuesday.

In contrast, suspending the excise taxes on kerosene and LPG would directly ease the burden on Filipino families and small businesses by helping them meet basic energy needs, he said.

On Monday, President Ferdinand R. Marcos, Jr. approved the suspension of excise taxes on LPG and kerosene while keeping levies on gasoline and diesel unchanged.

“This relief is focused on the most vulnerable,” said Mr. Go, citing savings of around P36.96 per 11-kg cylinder for LPG and P5.56 per liter of kerosene due to the suspension.

The Philippine Statistics Authority’s 2023 Family Income and Expenditure Survey showed that 48% of total kerosene consumption is attributed to the bottom 30% of households, while 55.7% of LPG users come from the bottom 70%.

“This means the benefits extend beyond the poorest households to also support middle-income families. For these families, every peso saved on fuel costs means more resources for food, education, and healthcare,” he added.

Meanwhile, the government will continue to provide additional targeted and managed subsidies for the most vulnerable sectors, including public transit operators and drivers, commuters, and farmers and fisherfolk, the Finance chief said.

“This measured and targeted response is designed to deliver immediate relief, ensuring that support reaches those who need it most, while preserving fiscal space to sustain essential public services and respond to an unpredictable global environment,” he said.

“The DBCC will continue to closely monitor global oil market developments and stands ready to adjust its policy response as needed.”

The Philippines is under a one-year state of national energy emergency, giving the government expanded powers to secure fuel supplies and shield the economy from rising oil prices amid the war in the Middle East.

THE Department of Public Works and Highways (DPWH) said it has approved the award of the P7.78-billion Boracay bridge project to San Miguel Holdings Corp. (SMHC), the infrastructure arm of San Miguel Corp. (SMC).

“We are pleased to notify SMHC that on March 25, 2026, the DPWH approved the resolution by the Public-Private Partnership (PPP) prequalification, bids, and awards committee (PBAC) for PPP recommending the award of the contract to San Miguel Holdings Corp.,” Public Works Secretary Vivencio B. Dizon said in a notice of award dated March 30.

SMHC secured the project after no competing bids were submitted by the deadline.

The company holds original proponent status for the unsolicited project, which involves the financing, design, construction, operation, and maintenance of a 2.54-kilometer bridge system, including a 1.14-kilometer limited-access bridge linking Caticlan in Malay, Aklan, to Boracay Island.

Under project guidelines, the contract is awarded to the original proponent if no comparative proposal is found to be superior.

The bridge will include access for public transport, pedestrian lanes, bikeways, and provisions for utilities such as power, telecommunications, water supply, and sewerage, according to the PPP Center.

The DPWH said the project aims to provide all-weather access between Boracay and Caticlan, improve emergency response, address solid and liquid waste management concerns, and support the island’s tourism-driven economy.

Separately, SMC is upgrading the Godofredo P. Ramos Airport in Caticlan through its unit Trans Aire Development Holdings Corp., with Megawide Construction Corp. undertaking the design and construction of the new passenger terminal building.

Meanwhile, Mr. Dizon said SMC has committed to partially opening a section of the P58.42-billion South Luzon Expressway Toll Road 4 (SLEX TR4) by 2026.

“For San Miguel, RSA (Ramon S. Ang) has committed that they will finally open part of TR4 by the end of 2026,” Mr. Dizon told reporters on the sidelines of an event last week.

Package A of the SLEX TR4 project is scheduled for completion by December 2026, based on DPWH data. The 11.32-kilometer segment covers Sto. Tomas, Batangas, to Makban, Laguna.

The full project, which is divided into six packages, is targeted for completion by June 2029. SLEX TR4 is being implemented by SMC SLEX, Inc., formerly South Luzon Tollways Corp.

The project has an estimated cost of P58.42 billion, excluding Package F, the final segment spanning 9.96 kilometers from Tayabas to Mayao, Lucena, Quezon.

SLEX TR4 is a 66.74-kilometer, four-lane toll road from Sto. Tomas, Batangas, to Tayabas and Lucena City in Quezon province.

The project is expected to improve the movement of goods and services between Metro Manila and southern provinces by reducing travel time and easing congestion along the Pan-Philippine Highway.

“And then after (TR4) we will then move to TR5. These things will take time but with the right push, we can get things done,” Mr. Dizon said.

The SLEX TR5 project is an extension of SLEX TR4. It is a four-lane toll road spanning about 420 kilometers from the terminal point of SLEX TR4, according to the DPWH.

The project aims to link Quezon and Bicol provinces and provide access to roll-on/roll-off ports.

SLEX TR5 consists of eight segments and is being implemented by South Luzon Toll Road 5 Expressway Corp. Segment 1 is estimated to cost about P22.6 billion.

SEVERAL OIL FIRMS are rolling back prices beyond the government’s initial projections, with diesel prices expected to drop by up to P23 per liter.

In separate advisories on Monday, fuel retailers announced a reduction in the prices at the pump starting April 14 (Tuesday), reflecting the sharp drop in global oil prices amid the ceasefire in the Middle East.

Shell Pilipinas Corp. is implementing the biggest rollback, with a reduction of P6.50 per liter for gasoline, P23 per liter for diesel, and P11.50 per liter for kerosene.

Unioil Petroleum Philippines, Inc. will slash gasoline and diesel prices by P4.50 per liter and P20.90 per liter, respectively.

Petron Corp. will reduce gasoline prices by P4.43 per liter, diesel by P20.89 per liter, and kerosene by P8.50 per liter.

Jetti Petroleum, Inc. said it is only reducing diesel prices by P2 per liter as it did not implement the P18.60 hike that the firm was supposed to implement last week. It will not adjust gasoline prices.

Seaoil Philippines, Inc. will cut gas prices by P4.43 per liter, diesel by P20.89 per liter, and kerosene by P8.50 per liter.

Flying V likewise will reduce gas prices by P4.50 per liter, biodiesel by P20.90 per liter, and kerosene by P8.50 per liter.

This marked the first rollback in recent months and providing a slight relief to consumers after weeks of consecutive price hikes.

Some of the announced price rollbacks are slightly higher than the Department of Energy’s earlier estimates, which projected minimum reductions of P20.89 per liter for diesel and P4.43 per liter for gasoline.

“I had a meeting with the oil companies… They have confirmed they will do the rollback as prescribed,” Energy Secretary Sharon S. Garin told DZMM radio on Monday.

However, oil prices face renewed upward pressure following US President Donald J. Trump’s announcement the US military will begin a blockade in the Strait of Hormuz after talks with Iran collapsed.

Reuters reported that the US military’s Central Command later said the blockade would only apply to ships going to or from Iran, including all Iranian ports on the Gulf and Gulf of Oman. US forces would not impede freedom of navigation for vessels transiting the Strait of Hormuz to and from non-Iranian ports and additional information would be provided, it said.

Iran’s Revolutionary Guards responded to Mr. Trump by warning that military vessels approaching the strait would be considered a ceasefire breach and dealt with harshly and decisively.

With the renewed threat to oil prices, Ms. Garin said they will monitor the five-day international trading to determine its impact and identify measures.

Jetti President Leo P. Bellas said the US blockade in the Strait of Hormuz may escalate the six-week-old conflict.

“If the US does successfully block vessels from Iranian ports, the economic pressure on Iran due to lost revenue may push the country to launch more attacks on energy infrastructures,” Mr. Bellas said in a Viber message. 

“Further attacks by Iran on export facilities that bypass the Strait of Hormuz would inflict maximum damage to the already shaky crude oil markets, and may result to further increase on prices,” he added.

SUBSIDIES
At the same time, the Federation of Philippine Industries (FPI) said the rollback in pump prices provides temporary relief for manufacturers that have been grappling with soaring costs since the Iran war started.

FPI Chairperson Elizabeth H. Lee in a statement urged the government to provide subsidies for manufacturers that have been affected by high oil prices.

“Philippine industries cannot plan around geopolitical windfalls — we need durable energy policy,” she said.

Despite the pump price rollback, Ms. Lee said pump prices are far from pre-Iran war levels.

“A P20 rollback today can be reversed by a P20 hike next week if the ceasefire collapses and the conflict escalates or persists,” she added.

Ms. Lee said the government should support local manufacturers by institutionalizing fuel subsidies for micro, small, and medium enterprises (MSMEs) and logistics players.

“Targeted, time-bound support should complement tax measures by assisting employed workers and firms in the most affected sectors, particularly MSMEs and energy-intensive industries such as manufacturing,” she said.

Ms. Lee also said there is a need to reduce the country’s reliance on imports and leverage a “buy local strategy.”

“This approach supports local enterprises, particularly MSMEs, while retaining value within the economy, sustaining employment, and strengthening our capacity to withstand global disruptions,” she said.

Ms. Lee said the conflict in the Middle East continues to affect manufacturers beyond oil prices. She cited lost or delayed export contracts, deferred capital investment, and workforce adjustments.

Meanwhile, Management Association of the Philippines President Donald Patrick L. Lim said businesses should resume continuity planning in case of another oil price spike.

“Businesses should view this as temporary and remain cautious, as the rollback only partially offsets recent increases and global oil markets remain volatile,” he said in a Viber message.

“Companies should continue planning for resilience by improving efficiency, reviewing supply chains, revisiting flexible work arrangements, and preparing contingency plans in case fuel prices rise again,” he added. — with Beatriz Marie D. Cruz and Reuters

ELISA T. IFURUNG still imagines the day she can stop packing belongings into rented rooms. The 69-year-old retired household helper has moved five times as landlords raised rents beyond what her family could afford, each transfer shrinking the chances of settling down in a home she can call her own.

Her son, who works at a business process outsourcing company, pays P4,000 a month for a one-bedroom house in Quezon City, where they live quietly and keep expenses tight. Buying a house, Ms. Ifurung said, no longer feels reachable.

“What matters is we are able to put food on our table everyday — other material things don’t matter, for now,” she told BusinessWorld in an interview.

She has heard of state-backed housing projects but said the paperwork, fees, and long repayment periods discourage her from even trying.

“Owning a house availed from government housing will take years to pay for,” she said. “These days, everything is so expensive.”

Her doubts play out against a deepening shelter gap. Government estimates place the Philippines’ housing shortage at 2.2 million units, driven by urban migration, land scarcity and wages that lag living costs. The Pambansang Pabahay Para sa Pilipino (4PH) program was designed to cut that backlog but has delivered far fewer homes than planned.

Since 2022, the program has completed 423,430 socialized housing units, well short of the original target of 6.5 million units by 2028, and below the revised goal of 1.1 million. Funding constraints, permitting delays, and affordability limits have slowed progress.

Marife M. Ballesteros, vice-president at the Philippine Institute for Development Studies (PIDS), said the program’s reliance on a build-and-sell model shuts out many intended beneficiaries.

“Most workers seeking a home are low-skilled, have low wages and are mobile,” she said in an e-mailed reply to questions. “The government should consider lifecycle-adjusted housing interventions.”

Nathaniel A. von Einsiedel, former president of the Chamber of Real Estate and Builders’ Associations, Inc., said household earnings simply don’t match housing prices.

“While the population continues to increase, the income of the people is not rising commensurately with the increase in cost of the housing units,” he said by telephone.

In Metro Manila, where the daily minimum wages range from P658 to P695, many urban poor households rely on informal jobs with unstable pay and short-term contracts, reducing their capacity to carry long housing loans.

Price caps meant to make socialized housing reachable have also stretched. House-and-lot packages are capped at P844,440 for units measuring at least 24 square meters, while slightly bigger units can cost as much as P950,000. Socialized condominium projects carry a maximum selling price of P1.8 million.

Implementing rules allow additional charges of as much as P200,000 linked to zonal values, pushing total prices close to P2 million. For families near or below the poverty line, those figures remain out of reach.

Dino Mari G. Palanca, director for marketing and research at Savills Philippines, said Metro Manila’s supply does not match demand.

“Much of the unmet demand comes from lower- and middle-income households, while a large portion of new supply — particularly in Metro Manila — has been concentrated in middle- to upper-income condominium developments,” he said in an e-mailed reply to questions.

Colliers Philippines data showed about 30,000 unsold ready-for-occupancy units in Metro Manila as of last year, equal to roughly eight years of inventory. Most carry price tags of at least P1.8 million.

“Its price is significantly higher than what homeless Filipinos could afford,” Mr. Palanca said. He added that higher fuel prices tied to geopolitical risks add pressure on both builders and buyers.

“Higher fuel costs typically feed into construction materials, logistics, and the price of everyday consumer goods, which reduces household purchasing power and raises development costs at the same time,” he pointed out.

Land scarcity keeps costs high, particularly in the capital. Mr. von Einsiedel said land policy often works against public housing goals.

Declaring government land alienable and disposable allows private ownership, which later forces the state to repurchase plots at higher prices.

“If the government retains ownership of land by not declaring it alienable and disposable, then it will have enough land for public housing,” he said.

A 2025 study by the PIDS found that urban growth in Metro Manila has intensified spatial inequality. Township developments and renewal projects raised land values and displaced low-income residents toward fringe areas.

“While urban revitalization can drive growth and attract investments, it may also lead to gentrification and uneven development, reinforcing existing social and spatial divides,” wrote Ms. Ballesteros, PIDS Supervising Research Specialist Tatum P. Ramos and PIDS Research Specialist Jenica A. Ancheta.

Only eight socialized housing projects and 14 economic housing projects have been approved in Metro Manila over the past decade, according to the study. Low-income workers form a large share of the capital’s labor force, yet housing supply there skews toward higher-income buyers.

Relocation tied to development often pushes informal settler families into nearby provinces. Philippine Statistics Authority data show households in the bottom 30% of income deciles earn P11,940 to P17,369 a month, levels that leave little room for formal housing costs.

AFFLUENT ENCLAVES
Mr. von Einsiedel said redevelopment of former state-owned land illustrates the imbalance. Projects such as Bonifacio Global City in Taguig and Newport City in Pasay evolved into high-end districts.

Development in these areas catered to the rich, leaving low-income families to cluster around cheaper land on the edges, he pointed out.

Chester Antonino C. Arcilla, associate professor at the University of the Philippines-Manila’s Department of Social Sciences, said urban-poor groups should take part in planning housing solutions.

“In the last decade, they have advocated for a ‘people-planning’ approach to ensure that housing location, design, financing and estate management are suitable and sustainable for urban-poor lives,” he said in an e-mailed reply to questions.

The 4PH program has expanded to include house-and-lot packages, rental housing and subsidized financing. It revived the Community Mortgage Program, which lets organized communities buy the land they occupy.

The state has also distributed certificates of entitlement to informal settler families on land reserved for housing under presidential proclamations.

“We hope that the expanded 4PH program’s openness translates to inclusive and sustainable housing for the Filipino urban poor,” Mr. Arcilla said.

Under the revised rules, the Social Housing Finance Corp. raised the loan cap to P400,000 per household to cover land purchase with basic site development. Final loan amounts depend on property value, selling price, and borrower income.

Rafael Vicente V. Dimalanta, technical adviser for human settlements at the Philippine Resource Center for Inclusive Development, said the cap remains thin against land and building costs.

“Not all urban-poor households fall under the same income decile, so it does not address the financial limitations of the poorest of the poor,” he said by telephone.

He said the Social Housing Finance Corp. should play a stronger role in land negotiations. “Nongovernmental organizations typically help in negotiating land acquisitions, but they can only do so much,” he said.

Ursula G. Orapa, a 41-year-old housewife, shares a studio-type home in Meycauayan, Bulacan province north of the capital with her husband, uncle, sister and niece.

Her husband built the structure using plywood and metal roofing on a small rented lot that costs P1,100 a month. Cabinets divide the room into a sleeping area and kitchen.

Four years ago, the family left Marilao after the landowner reclaimed the plot. “Under these written agreements, if the owner needs their lot back, we always have no choice but to leave and find another place to stay,” Ms. Orapa said by telephone in mixed English and Filipino.

She said public housing sites often lie far from jobs. Travel costs and long commutes erase the appeal, even when units appear cheaper.

More Filipinos now live with relatives to share expenses, a shift not reflected in public housing design, Ms. Ballesteros said. PIDS data show 29% of Philippine households no longer fit the nuclear family model.

Families that can support extended arrangements tend to have steadier incomes, she said, leaving others exposed when rents rise or jobs disappear.

Alternative housing types remain scarce. Budget support has also stayed thin. Housing has received about 0.3% of the national budget over the past decade, according to the Department of Human Settlements and Urban Development.

Lawmakers cut funding for the 4PH program to P35 million this year from the agency’s P700-million proposal.

“For almost every President, housing is not given a very high priority, hence the low budget,” Mr. von Einsiedel said.

Ms. Ifurung said corruption further weakens trust in public programs. “The money stolen by corrupt officials could have been used to provide housing for the poor,” she said.

She remains settled for now but still imagines permanence. “Hopefully, when we get a bigger budget,” she said.

THE PHILIPPINES dropped two spots to 18^th out of 25 emerging markets in the 2026 Foreign Direct Investment (FDI) Confidence Index by global management consulting firm Kearney. 

The Philippines posted a score of 1.4635 in the index, which ranks markets that are likely to attract the most FDI in the next three years.

This was the third straight year the Philippines’ ranking declined in the index. It ranked 16^th in 2025, 13^th in 2024 and 12^th in 2023.

“The index reflects a three-year outlook, so the shift points to softer medium-term investor confidence, rather than any single short-term factor,” Kearney Senior Partner, Philippines Country Head & APAC Communications, Media & Technology Lead Marco de la Rosa said in an e-mail interview.

“At the same time, recent Philippine-specific developments, including headlines last year around infrastructure spending and political challenges, may have weighed on investor sentiment, alongside a more risk-sensitive global environment, making the country a relatively less attractive destination for FDI,” he added.

The Philippines was rocked by a corruption scandal last year that linked government officials, lawmakers, and public contractors to anomalous flood control projects.

In 2025, the Philippines saw its FDI net inflows drop 17.1% year on year to $7.791 billion. This was the lowest yearly FDI level since 2020.

The downtrend continued at the start of this year as January FDI net inflows slid to a four‑month low of $443 million, 39.2% lower compared with the same month a year ago.

Conducted in January 2026, the FDI Confidence Index uses primary data from a proprietary survey of 507 senior executives of the world’s top corporations.

“China, the United Arab Emirates, and Saudi Arabia lead the emerging market ranking for the third consecutive year,” Kearney said.

Among emerging markets, the Philippines fell behind regional peers such as Thailand (6^th), Malaysia (7^th), Indonesia (13^th) and Vietnam (16^th).

“Other ASEAN (Association of Southeast Asian Nations) markets have become more attractive, particularly those benefiting from supply chain shifts and stronger positioning in innovation,” Mr. de la Rosa said. “Thailand and Malaysia are benefiting from China+1 diversification, while Vietnam stands out for linking talent to a clear sector strategy, particularly in semiconductors.”

Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes said that the steady decline in the index is not driven by a single factor but rather by the Philippines’ relative underperformance versus peers and persistent structural constraints.

“The index is relative, so even if the Philippines is stable, (the fact) that other countries are rising faster pushes it down,” he said in a Facebook Messenger chat.

According to Kearney, investors cited the Philippines’ labor talent as its strongest asset (32%), followed by natural resources (28%) and economic performance (27%). 

A fourth of the investors have identified the country’s tech innovation and ease of doing business as top reasons for investments, while 22% cited transparent governance. Only 12% cited infrastructure quality.    

However, a small percentage or 2% said that there were no strong reasons at all to invest in the Philippines.   

“What it suggests is that, for a small group of investors, the Philippines’ strengths may not yet be coming through as distinctly as some peers,” Mr. de la Rosa said.

Mr. Peña-Reyes said that the country continues to show weaknesses in the areas that investors are focusing on.

“Our innovation ecosystem is still lagging versus our peers. Our bureaucracy and regulatory complexity remain huge concerns. Our infrastructure gaps persist despite improvements,” he said. “Nevertheless, if the Philippines improves execution, specialization, and policy clarity, it can realistically reverse the trend within a few years.”

Mr. Peña-Reyes said that the Philippines can no longer rely on its talent pool, as other countries are highly competitive. For instance, 40% of investors view India’s talent pool as its strongest asset, while 34% cited the same for Vietnam.

“To stay competitive, [the Philippines] needs to differentiate, upgrade, and support talent. If it does these things well, it can remain highly attractive, even against larger players like India and fast-rising ones like Vietnam,” he said.

The survey showed investor sentiment in the Philippines had a score of -2, with 22% pessimistic about the Philippines’ three-year economic outlook compared with 20% optimistic.

Two other countries with negative optimism scores were Malaysia and Russia, which had -7 and -10, respectively.

“For the Philippines, the implication is clear. Even if its talent advantage remains strong, it must reduce uncertainty, improve execution, and signal stability to convert interest into actual inflows,” Mr. Peña-Reyes said.

While the survey was conducted before the Iran war, Kearney said investors already expected an increase in geopolitical tensions (36%), a rise in commodity prices (30%), and political instability in a developed market (30%) to occur in the next year. 

“When the survey was in the field in January, there was incredible instability in the global operating environment that likely drove a rise in geopolitical tensions to the top of the rankings,” Kearney said.

The report pointed to global instability, citing military operations in Venezuela, protests in Iran, and reports about the US potentially using force to acquire Greenland.

Kearney said that these tensions are likely to have contributed to greater concerns over increased political instability and rising commodity prices “which often occurs amid conflict-induced supply chain disruptions, as in the current Middle East conflict.”

Meanwhile, Kearney said that industrial policy is becoming an extremely important determinant in where investors put their investments, especially for information technology, heavy industry, telecommunication sectors, and healthcare firms.

“Investors recognize industrial policy as an important factor in making FDI decisions: 84% say industrial policy is “extremely” or “very” important,” it said.   

“Predictability, grounded in clear and consistent industry policy frameworks, is key to sustaining investor confidence and strengthening industrial policy outcomes,” it added.

In particular, the report identified infrastructure development (80%) and tax incentives (78%) as the most positively viewed industrial policy tools.

PRESIDENT Ferdinand R. Marcos, Jr. on Monday said he approved the suspension of excise taxes on liquefied petroleum gas (LPG) and kerosene to soften the impact of rising fuel costs on households, while leaving levies on gasoline and diesel unchanged.

The selective suspension is expected to provide modest relief to household budgets but may have limited effect on transport costs and inflation, which are more sensitive to diesel prices.

“We have reduced the tax on petroleum products that are directly used in the daily lives of our countrymen under the power given to us by law… meaning lower costs for cooking and the daily needs of each family,” he told a briefing in Filipino.

Mr. Marcos said the reduction is equivalent to P3.36 per kilo of LPG or about P37 per tank and P5.60 per liter of kerosene.

LPG prices are currently around P1,000 to P1,600 per tank, while kerosene prices are around P154 to P177.19 per liter.

Republic Act No. 12316, which took effect on April 13, granted the President emergency powers to cut or suspend excise taxes on fuel products.

Mr. Marcos said the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) Committee will still convene on Tuesday morning to decide on the possible reduction or suspension of excise taxes on gasoline and diesel.

“What we will do [on April 14] is to make sure… [we have] the supply of oil, food products and all the other raw materials [needed to] continue the running of the economy,” the President said.

The country is under a year-long energy emergency as the Middle East crisis threatens its fuel supply. Mr. Marcos established the UPLIFT Committee, an inter-agency body responsible for managing the government’s response to the war’s impact on the economy.

Excise taxes are capped at P6 a liter for diesel and P10 a liter for gasoline and other petroleum products, with a 12% value‑added tax applied broadly to goods and services.

FOOD SUPPLY
Meanwhile, Mr. Marcos said he ordered the Department of Agriculture (DA) and the Tariff Commission to lessen duties on imported food to make them cheaper for Filipino consumers, but he did not expound on the specific rates.

“We will protect consumers, farmers and the industry. That is the balance we are looking for because… the economy is a complicated system,” he added.

The DA and local governments are also expected to buy from local farmers.

“The government will catch this, so the harvest is not wasted, our farmers do not lose money, and our consumers benefit,” he said, adding the government will also expand its flagship Benteng Bigas Program.

The government also moved to expedite the processing of permits, such as the Sanitary and Phytosanitary Import Clearance  and the Certificate of Necessity to Import, to lessen costs.

Mr. Marcos also ordered the removal of fees at fish ports.

The Philippine Ports Authority also set the “RoRo” (roll-on, roll-off) terminal fee for vessels carrying agricultural products to P1.

“Our goal is to maintain adequate supply, prevent price increases, and ensure that our countrymen continue to earn a living,” Mr. Marcos said.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said the impact of the excise tax suspension on kerosene and LPG will be modest and targeted rather than broad-based.

Mr. Rivera said the move can bring immediate relief to households but the overall effect on inflation and total household spending will be limited.

“Global price movements will still be the dominant driver of local prices. So, it helps at the margin especially for vulnerable households, but it is not enough on its own to significantly offset broader cost-of-living pressures,” he said via Viber.

TAX CREDIT SCHEME
Meanwhile, lawmakers are pushing a tax credit scheme to allow immediate fuel price cuts, challenging the Department of Finance’s (DoF) position that suspending excise taxes may only apply to future imports.

Marikina Rep. Romero Federico “Miro” S. Quimbo, who heads the Committee on Ways and Means, said the government should ensure the public feels the relief “right away.”

He proposed at a House of Representatives hearing on Monday that fuel companies be granted tax credits for excise taxes already paid on existing inventories so they could cut pump prices without waiting for new shipments.

He estimated potential reductions of about P10 per liter for gasoline, P6 for diesel and P4.50 for kerosene as early as the day after a presidential directive.

The proposal runs counter to the DoF’s position that applying tax relief to fuel already in the country would be difficult.

“It will be hard with regard to administrative feasibility, the removal of the excise stocks, the inventories that are here in the Philippines,” Finance Undersecretary Rolando T. Ligon, Jr. told the hearing. The direction they are looking at is to apply it to “upcoming importations.”

Mr. Ligon said implementing tax relief on fuel already in storage poses technical and administrative challenges, citing the complexity of adjusting taxes on existing inventories.

He said once a directive is signed, implementation could take effect within one to two days through issuances from the Bureau of Customs.

Mr. Quimbo also asked the DoF to explain why a tax credit scheme would be unworkable, noting that the Bureau of Customs maintains records of inventory and tax payments.

Discussions on fuel tax measures come as volatility persists in global oil markets amid tensions linked to the Strait of Hormuz and the US-Israel war on Iran.

Energy Undersecretary Alessandro O. Sales said diesel prices are expected to drop by P20 to P21 per liter on Tuesday due to market movements, but warned that conditions remain unstable.

He said prices could climb to P130 to P170 a liter if hostilities resume, while a longer-term resolution could bring diesel prices down to P75 to P90 a liter over several months.

VAT REMOVAL UNLIKELY
Meanwhile, Mr. Marcos rejected calls to cut or suspend value-added tax (VAT) on fuel products, saying revenues from VAT collection are needed to fund aid programs for the public.

“If we take away the VAT on petroleum products, it will only help the petroleum market. What we need is funding to help the entire society,” he said.

“Right now, the cost-benefit analysis between the VAT collections and the benefit to people, ordinary people, still favors that we collect VAT and we use the extra funds.”

The DoF also expressed reservation regarding proposals to reduce the VAT on fuel to 10% from 12%.

Mr. Ligon said the removal or reduction of the VAT on petroleum products would result in a revenue loss of approximately P120 billion, further straining the national budget.

Joseph J. Capuno, undersecretary at the Department of Economy, Planning, and Development, said the Executive branch favors targeted subsidies over a uniform reduction in VAT.

“Targeted subsidies rather than uniform reduction in taxes that will compromise our ability to raise revenues to support those subsidies,” Mr. Capuno said, noting that broad tax cuts benefit all segments of the population rather than just the vulnerable.

In response, Cagayan de Oro Rep. Rufus B. Rodriguez called for a temporary reduction of the VAT to 10% only until the market price of oil drops below $80 per barrel, calling the current situation as a pressing emergency.

Mr. Rodriguez also pushed for a joint session of Congress to enact a “Bayanihan 3” package to address the energy crisis, similar to the one implemented during the coronavirus pandemic. — with Erika Mae P. Sinaking

Our Nadia Lathan visited the California Republican Party’s convention in San Diego Friday and Saturday and got a feel for conservatives and their cautious optimism.

“Liquor in hand, they rubbed shoulders alongside a small crowd of strategists, advocates and podcasters who were in a bit of a glow,” Lathan wrote after attending the Republican Party’s annual convention. 

Mostly they were just stoked to be watching a longtime antagonist, U.S. Rep. Eric Swalwell, fall apart.

Forty-five percent of voters are registered as Democrat in the state and President Donald Trump’s unpopular choices are likely to lead to a blue wave. 

So, how do they feel? They are hopeful. 

GOP leaders insist that what’s happening nationally has nothing to do with how Californians feel about how Dems are running the show. They are also aware there are a few key races and areas they need to focus on. Read more in the Sacramento Report. 

And the San Francisco Chronicle, followed by CNN, rocked the race for governor by publishing allegations that Swalwell, a Democrat running for governor, had sexually assaulted a former staffer and had sent unwanted photos and much more to several other women. The fallout and cancelling happened at lightning fast speed.  

Our editor Scott Lewis has more on the Politics Report. Read it here. 

About that: Swalwell suspended his gubernatorial campaign Sunday. However, his name will still be on the ballot.

More: The Republicans were not able to make an endorsement in the race for governor. Chad Bianco, the sheriff of Riverside County, had slightly more support at the convention in San Diego than Steve Hilton, the former Fox News host. And Bianco may have been able to take it had President Trump not endorsed Hilton last week.

Ironically, the Republicans’ reluctance to coalesce around one candidate means they are in a better position to deliver the Democrats’ nightmare: two Republicans making it through to the runoff election in November.

We Helped Defuse SeaWorld’s Fireworks

Two years after bird bodies washed up on Mission Bay shores following a barrage of fireworks shows, SeaWorld San Diego says it will switch to using mostly drones instead.

Voice of San Diego first reported that elegant tern adults, chicks and damaged eggs had washed ashore Kendall-Frost Marsh Reserve days after SeaWorld and Discover Mission Bay set off over 500 pounds of explosives on July 4, 2024. Upon taking over as San Diego City Council president, Joe LaCava declared war on pyrotechnics. 

“When I became council president I realized I had a louder voice to make that change,” LaCava told Environment Reporter MacKenzie Elmer during a Friday interview. “You were really the first one to hear me say this and made a big deal about it.”

On Thursday, SeaWorld and LaCava announced that the marine life entertainment business filed a permit application with the California Coastal Commission to launch large-scale drone shows for two years. The commission votes on the application April 15.

Read more here. 

VOSD Podcast: So Not Transparent

San Diego County Supervisors are making big moves to bolster transparency…or are they? 

Board Chair Terra Lawson Remer rolled out a much-awaited slate of proposals pitched at increasing government accountability. They include extending term limits, giving supervisors the ability to confirm and fire department heads and establishing an ethics commission. 

But if they are really concerned about, and committed to, transparency, there’s one thing they could do without a ballot measure: stop fighting our legitimate public records requests and forcing us to take them to court.

Plus: Catch up on the messy saga of Liberty Station and all the chisme in Chula Vista’s newly competitive mayoral race.

Listen to the whole episode here.

In Other News 

• Everyone needed some good news and the astronauts of Artemis II delivered. (Union-Tribune) 
• A judge has put a date on the books for the trial over the future of San Diego’s trash fee. (ABC 10) 

The Morning Report was written by Andea Sanchez-Villafana and Jakob McWhinney. It was edited by Scott Lewis. 

The post Morning Report: GOP Giddy About Dem Downfall appeared first on Voice of San Diego.

Manuel Cazanas has been living in a tent near a freeway on-ramp for more than a month. The 49-year-old moved to the area near Interstate 5 after suffering a spinal cord injury that cost him his job and apartment.  

Despite his limited mobility, every few days he has to pack up his green tent and lug the rest of his belongings across the street. It’s a common routine for Cazanas and other homeless people in the area. 

According to officials with the city’s Environmental Services Department, they have conducted almost 500 sweeps along freeway entrances and exits since the city got permission to remove encampments on state property last summer. 

In the three-block area where Cazanas lives, which includes a freeway on-ramp and off-ramp near 19th Street and Imperial Avenue, city employees conducted 67 sweeps from July 2025 to March 30, 2026. That area and ramps near 17th Street have seen the most sweeps, said Matthew Hoffman, spokesperson with the city’s homelessness services department.  

Last summer, the city entered into an agreement with Caltrans that allowed city workers to enter state property to clear encampments. But many homeless people keep going back to the same spots workers clear. Some people, like Cazanas, are waiting for a shelter bed spot to open, while others, a city outreach worker said, aren’t ready to accept services. 

“I’ve been waiting 45 days for a bed, but they don’t have a bed,” said Cazanas in Spanish, seated on his rolling walker as he looked out at the street. 

Since early March, city officials have spent more than $650,000 on removing encampments on state property. This includes costs for staff, contractors, trash disposal and more. Caltrans reimbursed the city $400,000 for that work, but city officials estimate that the city will spend up to $800,000 by July 2026, when the agreement ends.  

The city and Caltrans officials are in discussions about the future of the agreement, but no decisions have been made, a Caltrans spokesperson said.  

In Mayor Todd Gloria’s announcement of the agreement, he said the city would commit financial resources to the effort. City officials said they plan to keep doing the encampment sweeps despite the city’s own budget challenges.  

“For the remainder of the fiscal year, we’re going to continue as much as we can,” said Franklin Coopersmith, deputy director of the city’s Environmental Services Department in an interview with Voice. “We are in budget crunch time, so we are gonna’ have to do our best to balance our approach.” 

Since Mayor Gloria pushed for a camping ban in 2023, some homeless people have moved to harder to reach areas like canyons and freeways to avoid enforcement.  

The agreement with Caltrans cleared the way for city workers to enter state territory. The goal was to clean up trash and connect people with services, Gloria said. 

“We’re doing [outreach] in the state right of ways as a very prioritized and focused lens … because it is a public health and safety risk,” said Ketra Carter, program manager at the city’s Homelessness Strategies and Solutions Department in an interview with Voice. 

The agreement applies to a five-mile stretch of freeways that run through Little Italy, Barrio Logan, Downtown, Sherman Heights and East Village. 

Since the agreement began, city officials have received more than 1,000 reports related to homeless encampments in the area.  

They have removed more than 260 tons of waste. Hoffman, the spokesperson for the city’s homelessness services, said that as of early March, staff connected 13 people with housing and 44 people enrolled in the city’s Safe Sleeping Program. Encampment fires in the area have also dropped by 39 percent, according to the San Diego Fire-Rescue Department.  

City officials need to give a 48-hour notice to people in the area prior to a sweep. In that time, the city’s homelessness outreach team will go out to the area and try to connect people with services. 

Cazanas said he attempted to get a shelter bed through the homelessness outreach team each time they visited the area. 

“I tell them I’m disabled, I’m hurt, I need to leave the streets. Help me,” he said.  

He said they will jot down his name, date of birth, make some calls and find out there are no beds. He’s been stuck in the same cycle for over a month and a half. 

“They [outreach workers] have power,” said Cazanas. “But I don’t know why they [outreach workers] pick up some people more quickly than others.” 

Lt. Matthew Botkin of San Diego Police Department’s Homeless Outreach Team said there can be “limiting factors” such as the need to accommodate an individual’s particular needs.  

“The perception of picking up others is anomalous to our primary goal to place anyone who is ready, willing, and able to be placed,” said Lt. Botkin in an email statement to Voice. 

Due to Cazanas’ limited mobility, he needs a bottom bunk bed.  

“That is by far the most limited resource we have,” said Carter. 

However, January 2026 data from the San Diego Housing Commission shows the top reason for an incomplete request for shelter is because no top bunks were available.  

Ray Byars, 42, also lives in the encampment. He became homeless after his small business was forced to shut down during the pandemic and his only relative in San Diego passed away from brain cancer. 

He said the constant clean ups make it hard to keep track of his things. He also struggles moving back and forth because of chronic pain in his legs. Like Cazanas, he’s been trying to connect with services. 

“ The homeless team’s a joke. You’ll go to them and ask them for help – like for references for the tent city and stuff like that,” he said. “They tell you literally to wait here. If we get a bed for you, if there’s a bed open, then we’ll come back, but just wait here in this area. And you wait there in that area and then they never come back.” 

Lt. Botkin said if space is available and an individual clears the required checks, the city’s homelessness outreach team “will always transport to the appropriate service provider.”  

He said some people may not be in the area when they come back. He explained people may go to the bathroom or move to another area during the time it takes for the team to come back.  

“If you really are intent on getting off the streets or even taking small steps towards that, perhaps waiting four or five hours for us to come back while we’re doing other things might not be the best strategy,” said Lt. Botkin in an interview with Voice. “You may want to go out and engage our other partners and other resources in the city which I promise you, we are delivering ad nauseum to everyone every time we interact with them.” 

Carter said they have two dedicated outreach workers that go out to Caltrans land every Monday, Wednesday and Friday. They work separately from the homelessness outreach team and sweeping team to try to connect people with resources.  

Beds continue to be limited across the city of San Diego shelter system. When we first reported on the agreement in July, only 12 percent of requests for shelter were filled in the previous fiscal year.  

As of this fiscal year, more than 16,000 referrals were made for shelter beds. Only nine percent of requests for shelter were filled.  

“If it’s a male availability, top or bottom, we’re in single digits. If we’re in female availability, we’re in single digits. So that has to do with a bed that has come available because someone has exited that bed. We generally are operating at 98 to 99 percent occupancy throughout our shelter system,” said Carter. 

Carter also said some people are not ready to accept services. She said it takes time to build trust with some people, while others may be dealing with mental health issues.  

“One of our challenges is when they say they’re ready, the resource isn’t ready,” said Carter. 

On an early Wednesday morning David Joseph Caron, 50, scrambled to get his belongings together.  

He camps out at the other area near 17th Street and Imperial Avenue that city officials say they consistently sweep. A green notice to leave the area in 48 hours hangs on a nearby fence. 

A barefoot woman runs up to Caron and other people packing up their stuff. “Hey guys, I’ll pay you guys to borrow this shopping cart,” she pleaded. “We have to move. We’re going to lose all of our shit if we don’t move it right now. I need a shopping cart, wagon, or something.”  

The woman took off with a black cart and some other people to help her. Caron secured a strap across a stuffed black suitcase before he made his way off the strip of land. Clean-up trucks and police cars started to arrive across the street.  

“It’s like they’re just hustling us around — it’s like they’re moving cattle,” said Caron. “It seems totally unnecessary and it’s like busy work.”  

The post City Crews Have Cleared a Freeway Encampment Nearly 70 Times. People Keep Returning appeared first on Voice of San Diego.

Toxic gas invaded South Bay again Sunday night.  

Levels of hydrogen sulfide spewing from the sewage-polluted Tijuana River exceeded what the state says is safe for sensitive groups like children and the elderly in Nestor and San Ysidro. The San Diego Air Pollution Control District alerted the community, but that’s the extent of the authority air pollution cops say they have. 

That could change if the California Legislature approves a bill by State Sen. Steve Padilla, a Democrat representing District 18.  

Padilla’s bill, SB 58, would require the state Office of Environmental Health Hazard Assessment to develop a new public health hydrogen sulfide standard, direct the state to hold public workshops on the matter locally, and give more power to local air pollution control districts to protect the public from harm. (The bill doesn’t specify how, though).  

“We don’t have a standard that reflects the current science,” Padilla told the State Senate Committee on Environmental Quality in January. The state needs to “lower the standard and strengthen enforcement,” Padilla said. 

Right now, the San Diego’s Air Pollution Control District alerts the community if hydrogen sulfide reaches a concentration of 30 ppb – meaning 30 particles of hydrogen sulfide per billion particles of air. 

But research suggests that threshold is way too high. EPA officials have said that prolonged exposure to just 1.4 ppb of hydrogen sulfide could make people sick. One local public health expert says that should be the new standard. 

But there is no official federal standard for regulating hydrogen sulfide – the oil and gas industry (the largest man-made source of the gas) made sure of that in the early 1990s. Without federal guidance, almost every U.S. state that regulates the gas disagrees on how much hydrogen sulfide is dangerous over a given period of time. 

The best science available comes from old experiments on rats exposed to hydrogen sulfide for six hours a day for 10 weeks. Those rats developed lesions in their nostrils. Few scientific studies, beyond the rat tests, have shown what could happen to the human body under such low-level gas exposure conditions over months to a year.      

I found no agreement among federal, state or local public health officials back in December over how much hydrogen sulfide gas exposure is too much.  

With improved scientific techniques for monitoring hydrogen sulfide, the people of South Bay are now, unfortunately, the new proverbial lab rats.  

Data is pouring in from hydrogen sulfide sensors in the Tijuana River Valley and the Salton Sea, a drying desert lake fed by agricultural runoff in Imperial Valley, both hydrogen sulfide hotspots in Padilla’s district. We now know the extent of the problem.  

But Padilla’s bill could face challenges from the energy industry. Calpine Corporation, a privately-held natural gas and geothermal power company, logged concerns at the committee hearing.  

“We just want to watch this and make sure it doesn’t have implications to the geothermal industry,” said Theo Pahos, representing Calpine at the January hearing.  

The bill already passed the Senate on January 26. It awaits hearings in the California Assembly. 

In Other News 

• inewsource ran a three-part series unpacking the story behind the developer of the proposed, highly controversial data center in Imperial Valley and its impact on the community.  

• Birch Aquarium has a brood of red octopi that may be the first of its kind to procreate in an aquarium. (KPBS) 

• The San Diego County Water Authority sold more of its water supplies, this time to Eastern Municipal Water District of Southern California. (NBC 7) 

• Capital and Main look at how the drying Colorado River could impact Imperial Valley’s massive agricultural economy which has legal rights to river water despite the mounting threat of climate change-fueled drought.  

• San Diego Mayor Todd Gloria’s proposed budget includes increased funding for tree trimming, which supposedly helps the city meet its climate action goals. (Union-Tribune) 

• SeaWorld San Diego wants to cut its fireworks shows down by a lot, following our previous reporting on bird deaths. You’re welcome. (Voice of San Diego) 

• Battery developer AES pulled out of its proposed installation outside Escondido after mounting local opposition to the project. (Canary Media) 

• Maura Fox at the Union-Tribune had a bone-cruncher of a trail report describing how scientists from the San Diego Natural History Museum stumbled upon a rare, lunching snake species.  

• And finally, as we all nurse our necks from hopelessly craning to spot the Artemis II splashdown, this week is “Dark Sky Week.” Fox has a rundown of nighttime activities to celebrate when the world is dark and quiet. (Union-Tribune) 

The post Environment Report: Tijuana River’s Toxic Gas Gets Legislated appeared first on Voice of San Diego.

CHINESE electric carmaker BYD Cars Philippines is ramping up inventory in anticipation of stronger electric vehicle (EV) demand in the country, as rising oil prices are expected to push more consumers to shift to EVs.

Global oil prices have risen in recent weeks, with Brent crude averaging around $100.75 per barrel as of April 12, driven by disruptions caused by tensions in the Middle East.

In the Philippines, pump prices have increased by a cumulative P52.30 per liter for gasoline and P100.50 for diesel since Feb. 28, based on Department of Energy (DoE) data.

Higher fuel prices tend to raise the operating cost of conventional vehicles, which may make electric vehicles a more cost-efficient option over time.

“We didn’t know that this would be happening in our country, but we had the inventory on hand,” BYD Cars Philippines Executive Director Bob Palanca told reporters on the sidelines of the Manila International Auto Show last week.

“We can easily react because our manufacturing plant is just two hours away from the Philippines, so it would be very easy for us to access vehicles,” he added.

Mr. Palanca said all BYD vehicles are sourced from China and sold in the Philippines by Ayala-led AC Mobility Holdings, Inc., its official distributor.

He said the Philippine team is preparing for a possible increase in EV demand amid the ongoing oil crisis.

“We’re prepared to provide all the vehicles the market requires, no matter how huge that is.”

The company has sold more than 30,000 EV units in the Philippines so far.

Mr. Palanca said demand varies by location. Subcompact EVs are more popular in Metro Manila, while electric pickup trucks see stronger demand in provincial markets.

BYD Cars Philippines reported a 446% increase in retail sales to 26,122 units in 2025.

Electric vehicles still account for a small share of total vehicle sales in the Philippines, estimated at 7.25% as of end-February, but adoption has been gradually increasing, according to a joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. and the Truck Manufacturers Association.

Industry players have noted that rising fuel costs can influence consumer interest in alternative mobility options, including electric vehicles.

Mr. Palanca said the company is preparing for another vehicle launch this year but did not provide further details.

He said the planned launch had been set before the recent increase in EV demand.

“We need to ensure that we have the full lineup for the Philippine market. We’d like to cater to every need of the Filipino — from an affordable vehicle, subcompact, hatchback, all the way to our pickups,” Mr. Palanca noted.

The company currently has 79 dealerships nationwide, he said.

“I think that’s sufficient enough to support all our UIOs or units in operation as well as the services that we can cater to the customers,” Mr. Palanca said.

However, wider EV adoption in the Philippines continues to face challenges such as high vehicle prices and limited charging infrastructure, according to industry players.

Mr. Palanca said retail prices of BYD vehicles remain steady, but he did not indicate whether adjustments may be made.

ALLOWING economic zone locators to adopt work-from-home (WFH) arrangements for one year will help sustain business growth and preserve jobs amid external headwinds, the Philippine Economic Zone Authority (PEZA) said.

The Fiscal Incentives Review Board (FIRB) on April 10 approved a resolution that temporarily allows registered business enterprises (RBEs) to implement WFH arrangements without affecting their fiscal and non-fiscal incentives amid the national energy emergency.

“I am sure the economic zone locators will be happy with FIRB’s prompt approval of their request for increased WFH allowance — albeit up to 90% WFH limit only,” PEZA Director-General Tereso O. Panga told BusinessWorld.

“This will be a big relief already, in light of the anticipated shortage in fuel and electricity supply in the country given the worsening war conflict in the Middle East,” he added.

The FIRB said the resolution will be in effect one year from March 24, unless the state of national energy emergency is extended or lifted by President Ferdinand R. Marcos, Jr.

Mr. Marcos on March 23 declared a one-year state of national energy emergency, giving the government expanded powers to shield the economy from surging oil prices triggered by the war involving Iran, Israel and the US.

Under the FIRB measure, RBEs can adopt WFH arrangements for up to 90% of their total workforce or the employees engaged in the registered project or activity.

Prior to this measure, implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act provide that RBEs may implement up to a 50% WFH arrangement but subject to the rules of the concerned investment promotion agencies (IPAs).

Mr. Panga said that the FIRB’s move allows RBEs to help mitigate the impact of the rising cost of transport, logistics, electricity, and basic goods.

He said that the remaining 10% of the workforce that needs to work on-site ensures that on-premises servers, critical equipment, tech support, and even payroll processing are managed properly.

“It is a fair policy as it promotes business continuity for both the economic zone developers and locator companies,” Mr. Panga said.

“In all these, the government wants economic zone developers and locators to continue to operate to be able to sustain the jobs and growth amid headwinds.”

The FIRB resolution also allows concerned IPAs to set a lower on-site work threshold, based on operational needs and specific circumstances, provided it is not less than 50% of the total workforce.

However, Mr. Panga said that the agency will “leave it up to the RBEs and their workers to fix their firm-level flexi-work arrangements without having to compromise the business objectives.”

Trade Secretary and PEZA Chair Ma. Cristina A. Roque said that the measure will benefit business process outsourcing (BPO) companies and even some manufacturing companies.

“This will allow RBEs located in economic zones full-flexibility to adopt WFH as a measure to maintain their cost-competitiveness and equally important, ease the burden of higher fuel prices, on their workforce — particularly, for example, those in the BPOs and the administrative workers of electronics companies,” she said in a Viber message.

The IT & Business Process Association of the Philippines (IBPAP) said that it proposed the measure to PEZA “as a practical business continuity measure for information technology and business process management companies and their workforce.”

“This recommendation was put forward to help manage potential disruptions linked to rising transportation costs, while supporting the well-being and productivity of employees who rely on daily commuting,” IBPAP said.

“It allows the industry to remain agile, sustain service delivery, and continue meeting the demands of global clients amid a shifting operating environment.”