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City Manager Outlines Dire Potential Impacts of Next Year's Budget Deficit
 Last month, the City Council was presented with a status report on the city's dire fiscal situation. After outlining the significant impacts of the past 10 years of budget deficits, staff shared that its latest projections put next year's General Fund deficit between $78 and $115 million. To close this huge gap in FY 2012-2013, the City will likely be forced to consider even deeper and more painful cuts to basic city services next spring.
Without significant fiscal reforms, the City could be forced to:
- close all branch libraries and hub community centers;
- further reduce the number of police officers and firefighters;
- eliminate the remaining park rangers and further reduce park maintenance;
- further reduce funding for street paving and traffic light/sign maintenance; and
- eliminate General Fund subsidies for senior nutrition and wellness programs, museums, cultural facilities, the Convention and Visitors Bureau, and the Children's Health Initiative.
To mitigate these cuts, staff recommended that the City continue to pursue Fiscal Reforms that could yield $67 million in immediate General Fund savings (and tens of millions more if the voters agree to new revenues). The City continues to negotiate with its unions over many of the proposed fiscal reforms, with the goal of placing a ballot measure before the voters in a March special election.
Watch video of staff's budget presentation and the Council discussion.
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Retirement Reform Update
The City of San Jose continues to negotiate with its employee bargaining units regarding Retirement Reform ahead of the upcoming October 31 deadline. Completing negotiations by that time will allow the City Council to place a ballot measure before the voters (which would be necessary regardless of whether an agreement is reached) in a March 2012 special election. Watch this video message from Mayor Reed.
The City recently received new proposals from five of its bargaining units representing police officers, firefighters, architects and engineers, middle managers, and maintenance employees. While staff is currently analyzing the proposals and the assumptions used to calculate the estimated cost savings, Mayor Reed welcomed the proposals as a step forward in the negotiating process.
"I want to thank the leadership of San Jose Firefighters, Local 230, the San Jose Police Officers' Association, and IFPTE, Local 21 for taking seriously the depth of San Jose's pension problems," said Mayor Reed. "I look forward to seeing these proposals discussed at the bargaining table, as well as having them analyzed by our actuaries and financial experts." Read Mayor Reed's entire statement on the union proposal.
You can also read a recent editorial from the Mercury News on the need to address the city's pension problems now. |
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City Council Adopts Medical Marijuana Regulations
 In September, the City Council adopted two ordinances which established a reasonable set of regulations for medical marijuana collectives in San Jose. The ordinances cap the number of medical marijuana collectives at 10, prohibit collectives near residential areas and other sensitive uses, and require collectives to follow a number of operational guidelines in order to minimize impacts to public safety.
Once these ordinances go into effect next month, the process for selecting the 10 collectives will begin and Code Enforcement will begin contacting collectives to ensure they comply with the new ordinances.
Read this information memo from the City Manager's Office.
Some medical marijuana collectives and advocates have pledged to challenge the ordinances through a referendum. But given the City's limited resources and the lack of guidance from the state and federal government, these regulations will allow the city to gain control over the current situation, while accommodating patients with medical needs.
"It is unfortunate that some marijuana advocates are opposed to reasonable regulations that will allow safe access to medical marijuana," Mayor Reed said. "As recent events have illustrated, San Jose needs regulation to ensure that facilities operating in our city uphold the law and put patient safety at the forefront."
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Local Business and Travel Leaders:
We Need Your Help
Help us recruit more flights to San Jose's new state-of-the-art airport by filling out a short survey.
Learn more. |
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Serve on the Civil Service Commission
Apply by October 14 to fill one of 3 vacancies on this appellate body for personnel decisions affecting City employees. |
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14th Annual Walk to End Domestic Violence, 10/14
Join Mayor Reed and other local leaders as they raise awareness about domestic violence. Learn more |
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work2future Regional Job Fair, 10/12
Attend this event featuring more than 110 employers and resource agencies.
Learn more |
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Social Networking & Cyberbullying Forum, 10/22
The SJ Youth Commission & the Independent Police Auditor's Teen Leadership Council are hosting this special forum for youth and parents. Learn more |
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Silicon Valley Financial Planning Day, 10/29
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