Budget Deep Dive: 'Setting Dollars Aside' in San José
San Jose Lets Residents Try Their Hand at Balancing the City Budget
Just How Bad is San Jose's Budget Situation, Really?
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Much of that federal aid has been spent, and cities are grappling with the economic fallout of turmoil in Silicon Valley and changing commuter habits. Elected officials often say that budgets are “statements of values.” So KQED is checking the receipts of the \u003ca href=\"https://www.kqed.org/news/tag/city-budgets\">spending plans recently passed in San Francisco, San José and Oakland\u003c/a> to see how leaders in the region’s three largest cities are prioritizing taxpayer dollars.\u003c/em>\u003c/p>\n\u003cp>In June, when San José’s City Council passed its budget for the 2023–24 fiscal year, \u003ca href=\"https://www.kqed.org/news/11952913/san-jose-council-approves-modest-shift-toward-temporary-homeless-housing\">debate largely centered on how the city should spend\u003c/a> $87 million in earmarked funds left over from previous years to reduce homelessness.\u003c/p>\n\u003cp>Mayor Matt Mahan led a controversial push to prioritize funding temporary shelter, while other Council members urged a continued focus on paying for more permanent affordable housing. The compromise reached will shift a quarter of the unspent money toward temporary housing.\u003c/p>\n\u003cp>Elsewhere in the budget, the Council broadly agreed on increasing police staffing and setting aside the city’s modest budget surplus to deal with potential shortfalls in future years.\u003cbr>\n\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957433\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1.png\" alt=\"\" width=\"1640\" height=\"430\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-800x210.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-1020x267.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-160x42.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-1536x403.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>Unlike San Francisco and Oakland — which have both suffered from a steep decline in downtown commuters — San José is less reliant on a surge in daytime population, helping to land the city in a projected budget surplus of $35.2 million for the fiscal year beginning July 1.\u003c/p>\n\u003cp>In its proposed operating budget, the city manager’s office wrote that “key economic areas remain strong, including robust employment figures, rebounding hotel occupancy and room rates, and growing sales tax activity levels.”\u003c/p>\n\u003cp>Mahan said the city’s diversified economy also helped shield the budget from the fallout of tech layoffs that began surging at the end of 2022.\u003c/p>\n\u003cp>“Almost one in five jobs in the city are in manufacturing, so when you see these big top-line layoff numbers, they aren’t actually impacting San José as much,” Mahan told KQED. “We’re also a very residential-heavy city, which gives you a bit more stability in terms of revenues.”\u003c/p>\n\u003cp>\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957434\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1.png\" alt=\"\" width=\"1640\" height=\"898\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-800x438.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-1020x559.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-160x88.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-1536x841.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>The city is not planning a spending spree with its $35 million surplus. Again, in the grand scheme of things, it’s a pretty modest windfall — just 2% of the entire general fund — and city leaders are opting to use it conservatively, putting the majority of it, $19 million, into a reserve to prepare for an anticipated $18.8 million \u003cem>deficit \u003c/em>next fiscal year (more on that below).\u003c/p>\n\u003cp>“We are setting dollars aside, and have consistently, in rainy day funds,” Mahan said. “We have not overextended ourselves.”\u003c/p>\n\u003cp>The next largest surplus expenditure, $8 million, is for the BeautifySJ program. That initiative, launched in 2017, funds neighborhood clean-ups and staffing to respond to graffiti and illegal dumping complaints.\u003c/p>\n\u003cp>\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957437\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1.png\" alt=\"\" width=\"1640\" height=\"496\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-800x242.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-1020x308.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-160x48.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-1536x465.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>San José budget officials aren’t expecting the good times to last for long. The City Manager’s office is projecting this year’s surplus to be followed by a $18.8 million deficit next year, followed by roughly balanced books in the fiscal year beginning in July of 2025.\u003c/p>\n\u003cp>The current projections, according to the city’s operating budget document, are “built on the assumption of a moderate recession beginning in summer 2023, which impacts several economically sensitive categories.”\u003c/p>\n\u003cp>Clearly, things can (and have) changed. Despite a long-feared recession, the national and local economy has continued to motor along. On the flip side, the city’s ongoing labor \u003ca href=\"https://www.kqed.org/news/11956630/thousands-of-san-jose-city-workers-to-vote-next-week-on-strike-authorization\">tensions with its largest employee unions\u003c/a> could add some unforeseen costs in future budgets. Unlike the federal government, cities and states are not allowed to pass budgets with deficits, so if San José faces a shortfall, the books will need to be balanced with cuts or taxes — or as bureaucrats lovingly refer to them: savings and revenues.\u003c/p>\n\u003cp>\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957387\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2.png\" alt=\"\" width=\"1640\" height=\"1194\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-800x582.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-1020x743.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-160x116.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-1536x1118.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>To address economic uncertainty during the pandemic, San José city services were bolstered by an unprecedented level of aid from the federal government — most notably, the American Rescue Plan Act, signed by President Joe Biden in March of 2021, which delivered some $213 million to the city.\u003c/p>\n\u003cp>For the last two years, those funds have allowed the city to maintain its staff, while expanding waste pickup, rental assistance, housing for people experiencing homelessness and food distribution.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>But now, those federal dollars are running out, with: only $38 million remaining in the pot.[aside label=\"Related Stories\" postID=\"news_11957602,news_11952913\"]In budget terms, the sunsetting of funds like these is not technically a cut. But it feels that way for organizations like Loaves and Fishes Family Kitchen, a nonprofit meal provider that relied on that money to ramp up its delivery service to residents in need.\u003c/p>\n\u003cp>“That contract that we were asked to create meals for, it represents about 500,000 meals,” said David Hott, the group’s CEO.\u003c/p>\n\u003cp>Hott said that infusion of funding allowed his organization to deliver meals to a variety of service providers, including the Alum Rock School District, churches and local housing groups.\u003c/p>\n\u003cp>“The pandemic activities have lessened and the funding has ceased,” Hott said. “That does not mean the need has ceased, and that’s the struggle that we face now.”\u003c/p>\n\u003cp>But with no more federal relief coming in, Hott said they could be forced to scale back, and stop these expanded services.\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"Unlike Oakland and San Francisco, San José relies less on a surge in daytime population, helping to land the city in a projected budget surplus of $35.2 million for this fiscal year.","status":"publish","parent":0,"modified":1691596178,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":26,"wordCount":945},"headData":{"title":"Budget Deep Dive: 'Setting Dollars Aside' in San José | KQED","description":"Unlike Oakland and San Francisco, San José relies less on a surge in daytime population, helping to land the city in a projected budget surplus of $35.2 million for this fiscal year.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/11957368/san-jose-budget-deep-dive-setting-dollars-aside","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cem>After three years of economic growth and historic federal pandemic relief, local budgets in the Bay Area are looking a little different this year. Much of that federal aid has been spent, and cities are grappling with the economic fallout of turmoil in Silicon Valley and changing commuter habits. Elected officials often say that budgets are “statements of values.” So KQED is checking the receipts of the \u003ca href=\"https://www.kqed.org/news/tag/city-budgets\">spending plans recently passed in San Francisco, San José and Oakland\u003c/a> to see how leaders in the region’s three largest cities are prioritizing taxpayer dollars.\u003c/em>\u003c/p>\n\u003cp>In June, when San José’s City Council passed its budget for the 2023–24 fiscal year, \u003ca href=\"https://www.kqed.org/news/11952913/san-jose-council-approves-modest-shift-toward-temporary-homeless-housing\">debate largely centered on how the city should spend\u003c/a> $87 million in earmarked funds left over from previous years to reduce homelessness.\u003c/p>\n\u003cp>Mayor Matt Mahan led a controversial push to prioritize funding temporary shelter, while other Council members urged a continued focus on paying for more permanent affordable housing. The compromise reached will shift a quarter of the unspent money toward temporary housing.\u003c/p>\n\u003cp>Elsewhere in the budget, the Council broadly agreed on increasing police staffing and setting aside the city’s modest budget surplus to deal with potential shortfalls in future years.\u003cbr>\n\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957433\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1.png\" alt=\"\" width=\"1640\" height=\"430\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-800x210.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-1020x267.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-160x42.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Uon0q-san-jos-2023-2024-budget-1-1536x403.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>Unlike San Francisco and Oakland — which have both suffered from a steep decline in downtown commuters — San José is less reliant on a surge in daytime population, helping to land the city in a projected budget surplus of $35.2 million for the fiscal year beginning July 1.\u003c/p>\n\u003cp>In its proposed operating budget, the city manager’s office wrote that “key economic areas remain strong, including robust employment figures, rebounding hotel occupancy and room rates, and growing sales tax activity levels.”\u003c/p>\n\u003cp>Mahan said the city’s diversified economy also helped shield the budget from the fallout of tech layoffs that began surging at the end of 2022.\u003c/p>\n\u003cp>“Almost one in five jobs in the city are in manufacturing, so when you see these big top-line layoff numbers, they aren’t actually impacting San José as much,” Mahan told KQED. “We’re also a very residential-heavy city, which gives you a bit more stability in terms of revenues.”\u003c/p>\n\u003cp>\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957434\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1.png\" alt=\"\" width=\"1640\" height=\"898\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-800x438.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-1020x559.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-160x88.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/ghwys-where-is-san-jos-s-surplus-going-1-1536x841.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>The city is not planning a spending spree with its $35 million surplus. Again, in the grand scheme of things, it’s a pretty modest windfall — just 2% of the entire general fund — and city leaders are opting to use it conservatively, putting the majority of it, $19 million, into a reserve to prepare for an anticipated $18.8 million \u003cem>deficit \u003c/em>next fiscal year (more on that below).\u003c/p>\n\u003cp>“We are setting dollars aside, and have consistently, in rainy day funds,” Mahan said. “We have not overextended ourselves.”\u003c/p>\n\u003cp>The next largest surplus expenditure, $8 million, is for the BeautifySJ program. That initiative, launched in 2017, funds neighborhood clean-ups and staffing to respond to graffiti and illegal dumping complaints.\u003c/p>\n\u003cp>\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957437\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1.png\" alt=\"\" width=\"1640\" height=\"496\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-800x242.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-1020x308.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-160x48.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2024/08/Pn8ak-san-jos-s-projected-surplus-deficit-in-upcoming-fiscal-years-1-1536x465.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>San José budget officials aren’t expecting the good times to last for long. The City Manager’s office is projecting this year’s surplus to be followed by a $18.8 million deficit next year, followed by roughly balanced books in the fiscal year beginning in July of 2025.\u003c/p>\n\u003cp>The current projections, according to the city’s operating budget document, are “built on the assumption of a moderate recession beginning in summer 2023, which impacts several economically sensitive categories.”\u003c/p>\n\u003cp>Clearly, things can (and have) changed. Despite a long-feared recession, the national and local economy has continued to motor along. On the flip side, the city’s ongoing labor \u003ca href=\"https://www.kqed.org/news/11956630/thousands-of-san-jose-city-workers-to-vote-next-week-on-strike-authorization\">tensions with its largest employee unions\u003c/a> could add some unforeseen costs in future budgets. Unlike the federal government, cities and states are not allowed to pass budgets with deficits, so if San José faces a shortfall, the books will need to be balanced with cuts or taxes — or as bureaucrats lovingly refer to them: savings and revenues.\u003c/p>\n\u003cp>\u003ca href=\"https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2.png\">\u003cimg decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-11957387\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2.png\" alt=\"\" width=\"1640\" height=\"1194\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2.png 1640w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-800x582.png 800w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-1020x743.png 1020w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-160x116.png 160w, https://ww2.kqed.org/app/uploads/sites/10/2023/08/0q52a-how-san-jos-spent-its-american-rescue-plan-arpa-money-nbsp-nbsp-2-1536x1118.png 1536w\" sizes=\"(max-width: 1640px) 100vw, 1640px\">\u003c/a>\u003c/p>\n\u003cp>To address economic uncertainty during the pandemic, San José city services were bolstered by an unprecedented level of aid from the federal government — most notably, the American Rescue Plan Act, signed by President Joe Biden in March of 2021, which delivered some $213 million to the city.\u003c/p>\n\u003cp>For the last two years, those funds have allowed the city to maintain its staff, while expanding waste pickup, rental assistance, housing for people experiencing homelessness and food distribution.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But now, those federal dollars are running out, with: only $38 million remaining in the pot.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","postid":"news_11957602,news_11952913"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>In budget terms, the sunsetting of funds like these is not technically a cut. But it feels that way for organizations like Loaves and Fishes Family Kitchen, a nonprofit meal provider that relied on that money to ramp up its delivery service to residents in need.\u003c/p>\n\u003cp>“That contract that we were asked to create meals for, it represents about 500,000 meals,” said David Hott, the group’s CEO.\u003c/p>\n\u003cp>Hott said that infusion of funding allowed his organization to deliver meals to a variety of service providers, including the Alum Rock School District, churches and local housing groups.\u003c/p>\n\u003cp>“The pandemic activities have lessened and the funding has ceased,” Hott said. “That does not mean the need has ceased, and that’s the struggle that we face now.”\u003c/p>\n\u003cp>But with no more federal relief coming in, Hott said they could be forced to scale back, and stop these expanded services.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11957368/san-jose-budget-deep-dive-setting-dollars-aside","authors":["227"],"categories":["news_1758","news_8"],"tags":["news_32983","news_17968","news_18541","news_1887","news_1268"],"featImg":"news_11957180","label":"news"},"news_11649449":{"type":"posts","id":"news_11649449","meta":{"index":"posts_1591205157","site":"news","id":"11649449","score":null,"sort":[1518454716000]},"guestAuthors":[],"slug":"san-jose-lets-residents-try-their-hand-at-balancing-the-city-budget","title":"San Jose Lets Residents Try Their Hand at Balancing the City Budget","publishDate":1518454716,"format":"audio","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cp>Think it's hard putting together your personal budget? Try doing it for the largest city in the Bay Area.\u003c/p>\n\u003cp>San Jose has put together \u003ca href=\"http://sanjose.abalancingact.com/\" target=\"_blank\" rel=\"noopener\">a new website\u003c/a> where residents can try to balance the city's budget for the upcoming year using a program called \u003ca href=\"http://abalancingact.com/about\" target=\"_blank\" rel=\"noopener\">Balancing Act\u003c/a>.\u003c/p>\n\u003cp>On the website, residents can see the city's revenue streams (such as property and sales taxes) alongside what the city spends on things like public safety, parks and housing. They then have to try to decide what spending they would eliminate to balance the budget.\u003c/p>\n\u003cfigure id=\"attachment_11649458\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut.jpg\">\u003cimg class=\"size-medium wp-image-11649458\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-800x424.jpg\" alt=\"Residents using the Balancing Act website must decide what spending to cut in order to balance the budget.\" width=\"800\" height=\"424\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-800x424.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-160x85.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-1020x541.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-1180x626.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-960x509.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-240x127.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-375x199.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-520x276.jpg 520w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut.jpg 1279w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Residents using the Balancing Act website must decide what spending to cut in order to balance the budget. \u003ccite>(Balancing Act)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Mayor Sam Liccardo said one of the issues the city faces when it comes to balancing the budget is that more residents live in the city than work there, reducing the taxes the city can bring in.\u003c/p>\n\u003cp>\"We’re challenged here in San Jose because as a city with the worst jobs-to-housing balance of any major city in the country, we know we need more jobs in order to provide services,\" Liccardo said at a community event on Saturday. \"On the other hand, there a lot of folks who are pretty fed up with growth, and we understand why they are.\"\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Liccardo will lay out his priorities for the city's 2018-19 city budget in mid-March, but before then he's using this website to see where residents would like the city to focus its spending. Around 40 San Jose residents listened to Liccardo as he walked them through last year's budget, explained the breakdown of city funds, and discussed some of the budget constraints at the Mayfair Community Center over the weekend.\u003c/p>\n\u003cfigure id=\"attachment_11649454\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1.jpg\">\u003cimg class=\"size-medium wp-image-11649454\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-800x600.jpg\" alt=\"San Jose Mayor Sam Liccardo directs residents to a new website where they can tell the city how they would build a city budget.\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">San Jose Mayor Sam Liccardo directs residents to a new website where they can tell the city how they would build a city budget. \u003ccite>(Alyssa Jeong Perry/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>After his presentation, residents were on their own to craft their San Jose budget.\u003c/p>\n\u003cp>\"I'm concerned about police funding. I know San Jose has had trouble with the police funding,\" said South San Jose's Kevin Kelleher. So he chose to give more money to police by cutting money for transportation, but he still ended up with a deficit of $3 million.\u003c/p>\n\u003cp>Liccardo says allowing residents to try to balance the budget themselves helps them understand the intricacies of running a city with restricted funding.\u003c/p>\n\u003cp>\"We're required to make trade-offs, as we do in life in our own personal budgets,\" he said. \"It's important for us to really get a clear picture of priorities within that constrained budget rather than a wish list.\"\u003c/p>\n\u003cp>When they're done crafting their own San Jose budget online, residents can submit their proposals, giving Liccardo and his staff a picture of what the public would like to see done with city funds.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"It's helpful to enable us to understand whether what we think the community wants is really what the community wants,\" Liccardo said.\u003c/p>\n\n","blocks":[],"excerpt":"A new website allows residents to tell city leaders how they would like to see city funds spent.","status":"publish","parent":0,"modified":1518483898,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":14,"wordCount":509},"headData":{"title":"San Jose Lets Residents Try Their Hand at Balancing the City Budget | KQED","description":"A new website allows residents to tell city leaders how they would like to see city funds spent.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"11649449 https://ww2.kqed.org/news/?p=11649449","disqusUrl":"https://ww2.kqed.org/news/2018/02/12/san-jose-lets-residents-try-their-hand-at-balancing-the-city-budget/","disqusTitle":"San Jose Lets Residents Try Their Hand at Balancing the City Budget","audioUrl":"https://www.kqed.org/.stream/anon/radio/RDnews/2018/02/SanJoseBudget.mp3","path":"/news/11649449/san-jose-lets-residents-try-their-hand-at-balancing-the-city-budget","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Think it's hard putting together your personal budget? Try doing it for the largest city in the Bay Area.\u003c/p>\n\u003cp>San Jose has put together \u003ca href=\"http://sanjose.abalancingact.com/\" target=\"_blank\" rel=\"noopener\">a new website\u003c/a> where residents can try to balance the city's budget for the upcoming year using a program called \u003ca href=\"http://abalancingact.com/about\" target=\"_blank\" rel=\"noopener\">Balancing Act\u003c/a>.\u003c/p>\n\u003cp>On the website, residents can see the city's revenue streams (such as property and sales taxes) alongside what the city spends on things like public safety, parks and housing. They then have to try to decide what spending they would eliminate to balance the budget.\u003c/p>\n\u003cfigure id=\"attachment_11649458\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut.jpg\">\u003cimg class=\"size-medium wp-image-11649458\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-800x424.jpg\" alt=\"Residents using the Balancing Act website must decide what spending to cut in order to balance the budget.\" width=\"800\" height=\"424\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-800x424.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-160x85.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-1020x541.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-1180x626.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-960x509.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-240x127.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-375x199.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut-520x276.jpg 520w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/RS29377_SJ-Budget-qut.jpg 1279w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">Residents using the Balancing Act website must decide what spending to cut in order to balance the budget. \u003ccite>(Balancing Act)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Mayor Sam Liccardo said one of the issues the city faces when it comes to balancing the budget is that more residents live in the city than work there, reducing the taxes the city can bring in.\u003c/p>\n\u003cp>\"We’re challenged here in San Jose because as a city with the worst jobs-to-housing balance of any major city in the country, we know we need more jobs in order to provide services,\" Liccardo said at a community event on Saturday. \"On the other hand, there a lot of folks who are pretty fed up with growth, and we understand why they are.\"\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Liccardo will lay out his priorities for the city's 2018-19 city budget in mid-March, but before then he's using this website to see where residents would like the city to focus its spending. Around 40 San Jose residents listened to Liccardo as he walked them through last year's budget, explained the breakdown of city funds, and discussed some of the budget constraints at the Mayfair Community Center over the weekend.\u003c/p>\n\u003cfigure id=\"attachment_11649454\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003ca href=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1.jpg\">\u003cimg class=\"size-medium wp-image-11649454\" src=\"https://ww2.kqed.org/news/wp-content/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-800x600.jpg\" alt=\"San Jose Mayor Sam Liccardo directs residents to a new website where they can tell the city how they would build a city budget.\" width=\"800\" height=\"600\" srcset=\"https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-800x600.jpg 800w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-160x120.jpg 160w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-1020x765.jpg 1020w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-1920x1440.jpg 1920w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-1180x885.jpg 1180w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-960x720.jpg 960w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-240x180.jpg 240w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-375x281.jpg 375w, https://ww2.kqed.org/app/uploads/sites/10/2018/02/Image-uploaded-from-iOS-1-1-520x390.jpg 520w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">San Jose Mayor Sam Liccardo directs residents to a new website where they can tell the city how they would build a city budget. \u003ccite>(Alyssa Jeong Perry/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>After his presentation, residents were on their own to craft their San Jose budget.\u003c/p>\n\u003cp>\"I'm concerned about police funding. I know San Jose has had trouble with the police funding,\" said South San Jose's Kevin Kelleher. So he chose to give more money to police by cutting money for transportation, but he still ended up with a deficit of $3 million.\u003c/p>\n\u003cp>Liccardo says allowing residents to try to balance the budget themselves helps them understand the intricacies of running a city with restricted funding.\u003c/p>\n\u003cp>\"We're required to make trade-offs, as we do in life in our own personal budgets,\" he said. \"It's important for us to really get a clear picture of priorities within that constrained budget rather than a wish list.\"\u003c/p>\n\u003cp>When they're done crafting their own San Jose budget online, residents can submit their proposals, giving Liccardo and his staff a picture of what the public would like to see done with city funds.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\"It's helpful to enable us to understand whether what we think the community wants is really what the community wants,\" Liccardo said.\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11649449/san-jose-lets-residents-try-their-hand-at-balancing-the-city-budget","authors":["11334"],"programs":["news_6944"],"categories":["news_1758","news_8","news_13"],"tags":["news_6413","news_18541","news_1887"],"featImg":"news_11649457","label":"news_6944"},"news_40879":{"type":"posts","id":"news_40879","meta":{"index":"posts_1591205157","site":"news","id":"40879","score":null,"sort":[1316814946000]},"guestAuthors":[],"slug":"just-how-bad-is-san-joses-budget-situation-really","title":"Just How Bad is San Jose's Budget Situation, Really? ","publishDate":1316814946,"format":"aside","headTitle":"News Fix | KQED News","labelTerm":{"term":6944,"site":"news"},"content":"\u003cfigure id=\"attachment_40888\" class=\"wp-caption alignright\" style=\"max-width: 250px\">\u003ca href=\"http://www.flickr.com/photos/mamboman/261375741/\">\u003cimg class=\"size-full wp-image-40888\" title=\"sanjosecityhallSM\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/09/sanjosecityhallSM.jpg\" alt=\"\" width=\"250\" height=\"188\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">San Jose City Hall (Photo: Rainer Hungershausen)\u003c/figcaption>\u003c/figure>\n\u003cp>On Wednesday of this week, one could read an \u003ca href=\"http://www.mercurynews.com/bay-area-news/ci_18940474?nclick_check=1\">account of the previous day's San Jose City Council meeting\u003c/a> in the Mercury News that started this way:\u003c/p>\n\u003cblockquote>\u003cp>Every San Jose branch library shuttered. All city community center programs shut down. No more school crossing guards or park rangers. Even fewer cops.\u003c/p>\n\u003cp>That will likely be the reality for San Jose residents next summer if city officials don't raise taxes or trim employee pensions and perks, city administrators told San Jose's elected leaders Tuesday.\u003c/p>\u003c/blockquote>\n\u003cp>It doesn't take much reading of the news these days to realize what a dearth of dollars persists in local, state, and federal government. But as sky-is-falling scenarios are frequently advanced on both sides of any political issue, you always wonder just how much currency to give particularly bleak narratives like the one purveyed here. Further down in the Merc article, for example, you get this:\u003c/p>\n\u003cblockquote>\u003cp>(T)he early budget look was also a strategic move by Mayor Chuck Reed to shore up support for his controversial pension reform proposals -- which he says are critical in preventing San Jose from sliding into \"service-level insolvency.\"\u003c/p>\u003c/blockquote>\n\u003cp>So I asked longtime San Jose political reporter Janice Rombeck, editor and publisher of KQED News Associate \u003ca href=\"http://www.neighborwebsjdev.com/\">\u003cstrong>NeighborWebSJ\u003c/strong>\u003c/a>, just how seriously she was taking the dire predictions of severe cuts for fiscal year 2012-13 that are even more dire than those already enacted.\u003c/p>\n\u003cp>Very seriously, it turns out... \u003c!--more-->\u003c/p>\n\u003cp>Here's an edited transcript of my interview with her:\u003c/p>\n\u003cblockquote>\u003cp>\u003cstrong>What happened at the City Council meeting Tuesday?\u003c/strong>\u003c/p>\n\u003cp>The city budget director painted three pretty grim scenarios. The first was if no new revenue comes in and if the fiscal reforms that Mayor Chuck Reed has proposed don't get enacted. This is what the city is facing under that scenario: all libraries closed, all community centers closed or leased out to private directors, more police officers cut, no improvement done to city streets, maintenance and parks outsourced or just not done.\u003c/p>\n\u003cp>City Manager Deb Figone said \"this is no way to run a city of a million people.\"\u003c/p>\n\u003cp>\u003cstrong>\u003c/strong>\u003c/p>\n\u003caside class=\"pullquote alignleft\">There was a push to sound the alarm and let people know this is for real, this is not political posturing.\n\u003cp>\u003cstrong>\u003c/strong>\u003c/p>\u003c/aside>\n\u003cp>Is this just political posturing or do these numbers really add up? \u003c/p>\n\u003cp>I think the numbers are real.This is much earlier than they usually start on budget projections. I think it's because the outlook is grim, but also because they want support for these fiscal reforms, including the reduction of pension costs, the main expense that is driving these deficits. And they want to go to the ballot box probably not in June but maybe November 2012, to get a city charter change so that they can reduce pension benefits.\u003c/p>\n\u003cp>\u003cstrong>If they get these pension reforms, the draconian cuts need not take place? \u003c/strong>\u003c/p>\n\u003cp>There probably will still be cuts in the short term because some of these cost savings won't be realized until later on, but it won't be as dramatic as portrayed in scenario 1. But the city is still facing cuts beyond what we've had here before.\u003c/p>\n\u003cp>\u003cstrong>What is the status of Reed's pension reform plan? \u003c/strong>\u003c/p>\n\u003caside class=\"pullquote alignleft\">The city has run out of options.\u003c/aside>\n\u003cp>Most of it still needs to be negotiated with the 11 unions that make up city employees. That will be the difficult part. The ballot measure will allow the city to impose reductions in benefits if it can't be negotiated.\u003c/p>\n\u003cp>The city cut benefits and salaries of city employees by 10% last year, to help close the deficit in the current budget. But the Police Officers Association has filed a complaint. They want the cut to be for just one year; the city wants the cuts to be ongoing. That's in arbitration right now, and it could be devastating to the budget if the arbitrator comes back and says the city can't impose it again next year.\u003c/p>\n\u003cp>\u003cstrong>How does the public feel about pension reform?\u003c/strong>\u003c/p>\n\u003cp>The public is supportive of pension reform. But there was a lot of discussion at the council meeting about the public not understanding the reality of what the city is facing, and among some of the councilmembers there was a push to sound the alarm and let people know this is for real, this is not political posturing.\u003c/p>\n\u003cp>There has been pushback from some parts of the community who say the numbers are wrong, the actuarials are wrong, and the pension estimates and the costs are wrong. Independent auditors and insurance experts have said that's not true, these costs are going to escalate.\u003c/p>\n\u003caside class=\"pullquote alignleft\">\n\u003cp>It used to be journalists were kind of skeptical about early projections...That's not the case anymore.\u003c/p>\n\u003c/aside>\n\u003cp>The city has run out of options. They don’t' feel they can cut any more employees and continue to run the government and city services. They are going to try to increase the sales tax; they just passed a medicinal marijuana ordinance that will bring in additional revenue, maybe a couple of million dollars. They're looking under every nook and cranny. But it's just not popular to raise taxes in a recessionary economy in which people are hurting and out of work.\u003c/p>\n\u003cp>Part of the other result of this is that residents are going to have to do a lot more that they have been relying on the city to do. Graffiti removal is one -- the city relies on volunteers to do that. It's not going to be business as usual in San Jose.\u003c/p>\n\u003cp>It used to be that journalists were kind of skeptical about early projections. There always seemed to be a little bit of crying wolf. Then when budget time came around they'd come up with the money. But I don't see that; that's not the case anymore. These are real numbers and real tough decisions that are going to have to be made.\u003c/p>\n\u003cp>We've already seen it in this current budget: the anti-gang task force, the \u003ca href=\"http://www.strongneighborhoods.org/\">Strong Neighborhoods\u003c/a> initiative, anti-graffiti and anti-litter programs that are nationally known and have been held up as models for providing city services have been decimated or at least drastically cut. There are no sacred cows, there are no easy ways to balance this budge anymore.\u003c/p>\u003c/blockquote>\n\u003cp>You can \u003ca href=\"http://sanjose.granicus.com/MediaPlayer.php?view_id=2&clip_id=5314\">watch an archive of Tuesday's City Council meeting\u003c/a> at the San Jose web site.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>\u003cem>Update Sep 27\u003c/em> Janice Krombeck received this email from Mayor Reed's office today:\u003c/p>\n\u003cblockquote>\u003cp>(We) want to point out...that the Mayor, and many of his colleagues on the Council, are currently targeting a March 2012 special election for\u003cbr>\nfiscal reforms (not June or November). If we get voter approval in March, we'll have just enough time to implement the pension changes in time to achieve savings in FY 12-13. \u003c/p>\n\u003cp>We've been trying to do our best to make sure the media (and through them, our employees and the public) are aware of the timeline we're working on. Esp. since the whole reason for doing this is to try\u003cbr>\nand get the savings needed to avoid those devastating impacts next June.\n\u003c/p>\u003c/blockquote>\n\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1317143424,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":34,"wordCount":1213},"headData":{"title":"Just How Bad is San Jose's Budget Situation, Really? | KQED","description":"On Wednesday of this week, one could read an account of the previous day's San Jose City Council meeting in the Mercury News that started this way: Every San Jose branch library shuttered. All city community center programs shut down. No more school crossing guards or park rangers. Even fewer cops. That will likely be","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"disqusIdentifier":"40879 http://ww2.kqed.org/news/?p=40879","disqusUrl":"https://ww2.kqed.org/news/2011/09/23/just-how-bad-is-san-joses-budget-situation-really/","disqusTitle":"Just How Bad is San Jose's Budget Situation, Really? ","path":"/news/40879/just-how-bad-is-san-joses-budget-situation-really","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cfigure id=\"attachment_40888\" class=\"wp-caption alignright\" style=\"max-width: 250px\">\u003ca href=\"http://www.flickr.com/photos/mamboman/261375741/\">\u003cimg class=\"size-full wp-image-40888\" title=\"sanjosecityhallSM\" src=\"http://ww2.kqed.org/news/wp-content/uploads/sites/10/2011/09/sanjosecityhallSM.jpg\" alt=\"\" width=\"250\" height=\"188\">\u003c/a>\u003cfigcaption class=\"wp-caption-text\">San Jose City Hall (Photo: Rainer Hungershausen)\u003c/figcaption>\u003c/figure>\n\u003cp>On Wednesday of this week, one could read an \u003ca href=\"http://www.mercurynews.com/bay-area-news/ci_18940474?nclick_check=1\">account of the previous day's San Jose City Council meeting\u003c/a> in the Mercury News that started this way:\u003c/p>\n\u003cblockquote>\u003cp>Every San Jose branch library shuttered. All city community center programs shut down. No more school crossing guards or park rangers. Even fewer cops.\u003c/p>\n\u003cp>That will likely be the reality for San Jose residents next summer if city officials don't raise taxes or trim employee pensions and perks, city administrators told San Jose's elected leaders Tuesday.\u003c/p>\u003c/blockquote>\n\u003cp>It doesn't take much reading of the news these days to realize what a dearth of dollars persists in local, state, and federal government. But as sky-is-falling scenarios are frequently advanced on both sides of any political issue, you always wonder just how much currency to give particularly bleak narratives like the one purveyed here. Further down in the Merc article, for example, you get this:\u003c/p>\n\u003cblockquote>\u003cp>(T)he early budget look was also a strategic move by Mayor Chuck Reed to shore up support for his controversial pension reform proposals -- which he says are critical in preventing San Jose from sliding into \"service-level insolvency.\"\u003c/p>\u003c/blockquote>\n\u003cp>So I asked longtime San Jose political reporter Janice Rombeck, editor and publisher of KQED News Associate \u003ca href=\"http://www.neighborwebsjdev.com/\">\u003cstrong>NeighborWebSJ\u003c/strong>\u003c/a>, just how seriously she was taking the dire predictions of severe cuts for fiscal year 2012-13 that are even more dire than those already enacted.\u003c/p>\n\u003cp>Very seriously, it turns out... \u003c!--more-->\u003c/p>\n\u003cp>Here's an edited transcript of my interview with her:\u003c/p>\n\u003cblockquote>\u003cp>\u003cstrong>What happened at the City Council meeting Tuesday?\u003c/strong>\u003c/p>\n\u003cp>The city budget director painted three pretty grim scenarios. The first was if no new revenue comes in and if the fiscal reforms that Mayor Chuck Reed has proposed don't get enacted. This is what the city is facing under that scenario: all libraries closed, all community centers closed or leased out to private directors, more police officers cut, no improvement done to city streets, maintenance and parks outsourced or just not done.\u003c/p>\n\u003cp>City Manager Deb Figone said \"this is no way to run a city of a million people.\"\u003c/p>\n\u003cp>\u003cstrong>\u003c/strong>\u003c/p>\n\u003caside class=\"pullquote alignleft\">There was a push to sound the alarm and let people know this is for real, this is not political posturing.\n\u003cp>\u003cstrong>\u003c/strong>\u003c/p>\u003c/aside>\n\u003cp>Is this just political posturing or do these numbers really add up? \u003c/p>\n\u003cp>I think the numbers are real.This is much earlier than they usually start on budget projections. I think it's because the outlook is grim, but also because they want support for these fiscal reforms, including the reduction of pension costs, the main expense that is driving these deficits. And they want to go to the ballot box probably not in June but maybe November 2012, to get a city charter change so that they can reduce pension benefits.\u003c/p>\n\u003cp>\u003cstrong>If they get these pension reforms, the draconian cuts need not take place? \u003c/strong>\u003c/p>\n\u003cp>There probably will still be cuts in the short term because some of these cost savings won't be realized until later on, but it won't be as dramatic as portrayed in scenario 1. But the city is still facing cuts beyond what we've had here before.\u003c/p>\n\u003cp>\u003cstrong>What is the status of Reed's pension reform plan? \u003c/strong>\u003c/p>\n\u003caside class=\"pullquote alignleft\">The city has run out of options.\u003c/aside>\n\u003cp>Most of it still needs to be negotiated with the 11 unions that make up city employees. That will be the difficult part. The ballot measure will allow the city to impose reductions in benefits if it can't be negotiated.\u003c/p>\n\u003cp>The city cut benefits and salaries of city employees by 10% last year, to help close the deficit in the current budget. But the Police Officers Association has filed a complaint. They want the cut to be for just one year; the city wants the cuts to be ongoing. That's in arbitration right now, and it could be devastating to the budget if the arbitrator comes back and says the city can't impose it again next year.\u003c/p>\n\u003cp>\u003cstrong>How does the public feel about pension reform?\u003c/strong>\u003c/p>\n\u003cp>The public is supportive of pension reform. But there was a lot of discussion at the council meeting about the public not understanding the reality of what the city is facing, and among some of the councilmembers there was a push to sound the alarm and let people know this is for real, this is not political posturing.\u003c/p>\n\u003cp>There has been pushback from some parts of the community who say the numbers are wrong, the actuarials are wrong, and the pension estimates and the costs are wrong. Independent auditors and insurance experts have said that's not true, these costs are going to escalate.\u003c/p>\n\u003caside class=\"pullquote alignleft\">\n\u003cp>It used to be journalists were kind of skeptical about early projections...That's not the case anymore.\u003c/p>\n\u003c/aside>\n\u003cp>The city has run out of options. They don’t' feel they can cut any more employees and continue to run the government and city services. They are going to try to increase the sales tax; they just passed a medicinal marijuana ordinance that will bring in additional revenue, maybe a couple of million dollars. They're looking under every nook and cranny. But it's just not popular to raise taxes in a recessionary economy in which people are hurting and out of work.\u003c/p>\n\u003cp>Part of the other result of this is that residents are going to have to do a lot more that they have been relying on the city to do. Graffiti removal is one -- the city relies on volunteers to do that. It's not going to be business as usual in San Jose.\u003c/p>\n\u003cp>It used to be that journalists were kind of skeptical about early projections. There always seemed to be a little bit of crying wolf. Then when budget time came around they'd come up with the money. But I don't see that; that's not the case anymore. These are real numbers and real tough decisions that are going to have to be made.\u003c/p>\n\u003cp>We've already seen it in this current budget: the anti-gang task force, the \u003ca href=\"http://www.strongneighborhoods.org/\">Strong Neighborhoods\u003c/a> initiative, anti-graffiti and anti-litter programs that are nationally known and have been held up as models for providing city services have been decimated or at least drastically cut. There are no sacred cows, there are no easy ways to balance this budge anymore.\u003c/p>\u003c/blockquote>\n\u003cp>You can \u003ca href=\"http://sanjose.granicus.com/MediaPlayer.php?view_id=2&clip_id=5314\">watch an archive of Tuesday's City Council meeting\u003c/a> at the San Jose web site.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003cem>Update Sep 27\u003c/em> Janice Krombeck received this email from Mayor Reed's office today:\u003c/p>\n\u003cblockquote>\u003cp>(We) want to point out...that the Mayor, and many of his colleagues on the Council, are currently targeting a March 2012 special election for\u003cbr>\nfiscal reforms (not June or November). If we get voter approval in March, we'll have just enough time to implement the pension changes in time to achieve savings in FY 12-13. \u003c/p>\n\u003cp>We've been trying to do our best to make sure the media (and through them, our employees and the public) are aware of the timeline we're working on. Esp. since the whole reason for doing this is to try\u003cbr>\nand get the savings needed to avoid those devastating impacts next June.\n\u003c/p>\u003c/blockquote>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/40879/just-how-bad-is-san-joses-budget-situation-really","authors":["80"],"programs":["news_6944"],"tags":["news_728","news_152","news_118","news_18541","news_1887","news_1268"],"label":"news_6944"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. 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