SAN JOSE, Calif.—With the release of San Jose City Manager Debora Figone’s Proposed Operating Budget as scheduled, San Jose residents are getting a first look into the unavoidable changes in city services.
San Jose’s 2011-2012 projected general fund shortfall tops $115 million. This equates to an approximate 14 percent source imbalance to the general fund. This year’s shortfall is just $3 million shy of last year’s deficit. The total general fund for 2011-2012 is over $819 million according to the city’s proposed budget summary.
“The changes needed to balance the budget will have a significant impact on the services we are able to provide to the community,” says Mrs. Figone’s news release.
San Jose’s full time city positions will be reduced by 600, returning to levels not seen since the mid 1980’s. After full time positions peaked in 2001 at 7,500, full time positions are proposed to be reduced to 5,252 for the 2011-2012 budget.
However, San Jose’s population has not similarly decreased over the same span of time. Since 1986, San Jose’s population has increased by approximately 218,789.
“There’s going to be less library hours, less community center hours, less police officers, less firefighters, so almost every part of the city’s services are going to be reduced. Anybody who is dealing with the city in any way is going to see a change in service level,” warned Mayor Chuck Reed following one of the community meetings.
The 2011-2012 budget proposal closes the $115 million deficit with the assumption that the six remaining bargaining groups agree to the 10 percent reduction in total compensation and rollbacks of any salary increases during 2011-2012.
I am “cautiously optimistic that we are going to get it all done,” added Reed.
Out of the 11 total bargaining units, six have yet to accept the concessions. Mayor Reed mentioned that the council can impose terms on four of the six remaining bargaining units yet to step forward to ensure concessions are met.
The city manager warns that if the concessions are not achieved with all bargaining units, additional Tier 2 budget actions will be brought forward and another 450 city positions will be reduced along with the closure of all branch libraries and community centers.
The proposed budget summary indicates that over the last 10 years the city’s workforce has decreased by 30 percent and this year alone could see the loss of 370 full time positions, and 446 employees moved into potentially lower-paying positions through the seniority/bumping program.
The more outstanding changes in city services include: keeping all fire stations open, but limiting the seven San Jose fire stations with two fire companies to only one fire company; elimination of over 195 sworn police positions; elimination of 64 sworn fire positions; reduced library hours from 39 to 25 and only open three days per week; reduction of hours at “hub” community centers to 59 hours per week; and utility rate fee increases in recycling, municipal water, sewer, and storm sewer service of upwards of $2.50 per month.
San Jose Police Chief Chris Moore noted, “We are changing work hours; we are basically restructuring the department,” and warned there will be “fewer investigations of non-violent crimes.”
Moore also reassured residents that, “The priority is always going to be first response. Getting the calls and responding to them.”
“We cannot continue to cut services and lay off employees year after year. We must attack the root causes of our structural budget deficit so we can restore police and fire services, libraries, and community centers,” stated Mayor Reed about Figone’s proposed budget.
“It’s time for fiscal reform,” said Reed.
“Retirement costs are the largest single driving factor of our structural budget deficit. By 2015, San Jose is projected to be paying $400 million a year to cover the cost for commitments made to our employees and retirees,” added Reed.
“Roughly half of the deficit ($58 million) is the result of additional pension contribution costs,” states Figone in the proposed budget summary.
Reed is determined to follow through with fiscal reform. Affecting the retirement benefits of San Jose employees already retired is also on the table.
“There are vested rights, but under some circumstances we have a right to do things that may affect those vested rights,” said Reed regarding retirees’ pensions. Reed added that fiscal emergency is one of the circumstances. “If there is a fiscal emergency, for example, and we are certainly in a fiscal emergency right now,” said Reed.
The City of San Jose has averaged an approximate $68 million annual deficit over the last 10 years and projects a $78 million deficit for 2012-2013 that includes the $35 million carryover from 2011-2012.
Getting the fiscal emergency in order will take time says Chief Moore: “We did not get into this problem overnight, and it will not be fixed overnight either.”
Evening public hearing meetings will be held at the San Jose City Hall Chamber on May 17 and June 13. Contact your local district councilmember for more information on the upcoming study sessions.
San Jose’s 2011-2012 projected general fund shortfall tops $115 million. This equates to an approximate 14 percent source imbalance to the general fund. This year’s shortfall is just $3 million shy of last year’s deficit. The total general fund for 2011-2012 is over $819 million according to the city’s proposed budget summary.
“The changes needed to balance the budget will have a significant impact on the services we are able to provide to the community,” says Mrs. Figone’s news release.
San Jose’s full time city positions will be reduced by 600, returning to levels not seen since the mid 1980’s. After full time positions peaked in 2001 at 7,500, full time positions are proposed to be reduced to 5,252 for the 2011-2012 budget.
However, San Jose’s population has not similarly decreased over the same span of time. Since 1986, San Jose’s population has increased by approximately 218,789.
“There’s going to be less library hours, less community center hours, less police officers, less firefighters, so almost every part of the city’s services are going to be reduced. Anybody who is dealing with the city in any way is going to see a change in service level,” warned Mayor Chuck Reed following one of the community meetings.
The 2011-2012 budget proposal closes the $115 million deficit with the assumption that the six remaining bargaining groups agree to the 10 percent reduction in total compensation and rollbacks of any salary increases during 2011-2012.
I am “cautiously optimistic that we are going to get it all done,” added Reed.
Out of the 11 total bargaining units, six have yet to accept the concessions. Mayor Reed mentioned that the council can impose terms on four of the six remaining bargaining units yet to step forward to ensure concessions are met.
The city manager warns that if the concessions are not achieved with all bargaining units, additional Tier 2 budget actions will be brought forward and another 450 city positions will be reduced along with the closure of all branch libraries and community centers.
The proposed budget summary indicates that over the last 10 years the city’s workforce has decreased by 30 percent and this year alone could see the loss of 370 full time positions, and 446 employees moved into potentially lower-paying positions through the seniority/bumping program.
The more outstanding changes in city services include: keeping all fire stations open, but limiting the seven San Jose fire stations with two fire companies to only one fire company; elimination of over 195 sworn police positions; elimination of 64 sworn fire positions; reduced library hours from 39 to 25 and only open three days per week; reduction of hours at “hub” community centers to 59 hours per week; and utility rate fee increases in recycling, municipal water, sewer, and storm sewer service of upwards of $2.50 per month.
San Jose Police Chief Chris Moore noted, “We are changing work hours; we are basically restructuring the department,” and warned there will be “fewer investigations of non-violent crimes.”
Moore also reassured residents that, “The priority is always going to be first response. Getting the calls and responding to them.”
“We cannot continue to cut services and lay off employees year after year. We must attack the root causes of our structural budget deficit so we can restore police and fire services, libraries, and community centers,” stated Mayor Reed about Figone’s proposed budget.
“It’s time for fiscal reform,” said Reed.
“Retirement costs are the largest single driving factor of our structural budget deficit. By 2015, San Jose is projected to be paying $400 million a year to cover the cost for commitments made to our employees and retirees,” added Reed.
“Roughly half of the deficit ($58 million) is the result of additional pension contribution costs,” states Figone in the proposed budget summary.
Reed is determined to follow through with fiscal reform. Affecting the retirement benefits of San Jose employees already retired is also on the table.
“There are vested rights, but under some circumstances we have a right to do things that may affect those vested rights,” said Reed regarding retirees’ pensions. Reed added that fiscal emergency is one of the circumstances. “If there is a fiscal emergency, for example, and we are certainly in a fiscal emergency right now,” said Reed.
The City of San Jose has averaged an approximate $68 million annual deficit over the last 10 years and projects a $78 million deficit for 2012-2013 that includes the $35 million carryover from 2011-2012.
Getting the fiscal emergency in order will take time says Chief Moore: “We did not get into this problem overnight, and it will not be fixed overnight either.”
Evening public hearing meetings will be held at the San Jose City Hall Chamber on May 17 and June 13. Contact your local district councilmember for more information on the upcoming study sessions.
