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June 30, 2010
By John Woolfolk
SAN JOSE — The San Jose City Council gave the final
sign-off on its budget Tuesday — a week later than expected
— with one member phoning in from a fishing trip in
Mexico and labor unions making a last pitch to save janitorial
jobs.
The 8-3 vote on a budget that was passed in concept June 17
officially approved appropriations for the 2010-11 fiscal
year, which begins today. The final budget deal was delayed
a week so the council could accept last-minute concessions
from five employee unions.
Council members Ash Kalra, Nora Campos and Kansen Chu were
opposed, saying the hundreds of job cuts in the budget affecting
everything from police and fire to janitorial services could
be lessened by tapping more reserve funds.
"I don't think the heartache we're causing is worth it,"
Kalra said.
Most council members, however, said the city faced grim choices.
Employee costs have risen more than three times faster than
revenues in the past decade, driving nine straight years of
deficits, with more in the future. To balance this year's
$954 million operating budget, the council had to close a
record $118.5 million deficit.
"The city of San Jose cannot print money," Councilwoman
Rose Herrera said. "It has to balance its budget."
To help balance the books, the council and executive management
reduced their compensation 10 percent, and six employee unions
representing some 1,600 workers agreed to equivalent cuts,
saving 107 jobs.
A building-inspectors union on which the council had previously
imposed 5 percent cuts has also offered a 10 percent concession,
which the council may approve in August.
Still, the budget eliminates 783 city jobs, and while some
of those are vacant, 400 to 500 employees who can't find work
elsewhere in the city are expected to be laid off unless other
unions agree to concessions.
Concession talks are continuing with police and firefighters,
whose arbitration rights in the city charter prevent the council
from imposing pay cuts. Talks also are ongoing with two other
unions, one of which represents custodians the city has decided
to outsource.
Union leaders on Tuesday bitterly protested outsourcing the
custodial jobs, calling it unfair to some of the city's lowest-paid
employees.
Their work will be taken over by unionized contract cleaners
who earn the city's "living wage" but still cost
half as much, in part because taxpayers aren't directly on
the hook to provide benefits.
Chu, who had originally supported the budget, voted against
it Tuesday, citing concerns about outsourcing.
But Councilman Sam Liccardo noted that other important city
employees, including youth outreach workers, recreation leaders
and regional park aides, earn less than custodians and that
the city would have to lose them to keep the janitors.
"We're in extremely difficult times," Liccardo said.
Recognizing that, Councilman Pete Constant — who dialed
in from a preplanned Mexico trip — said he would pay
for the long-distance call himself.
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