By Khalida Sarwari
If the recent layoffs of more than 60 police officers and significant reductions in hours at libraries and community centers was bad, San Jose’s 2012-2013 budget could spell even more doom and gloom, according to a report presented Tuesday to the city council.
Whereas branch libraries are open four days a week now, all but one would be closed. And, locks would be placed on the doors of community centers, all of which had their hours slashed by four hours a week when the recent budget was passed.
The jobs of firefighters and police officers would once again be on the chopping block.
During their presentation of the report on next year’s budget, city staff told San Jose council members the solution to moderate this bleak outlook is to start reining in retirement costs and consider raising taxes.
“The decisions that are going to have to be made over the next few months are just going to be horrendous,” said Councilman Pete Constant. “We obviously have a dire emergency in front of us.”
San Jose’s recurrent shortfalls are being driven by two deep recessions and escalating retirement costs. The city’s 11th consecutive budget deficit next year is projected to be anywhere from $78 million to $115 million depending on increased retirement contributions, impacts from the state’s actions to eliminate redevelopment agencies, and potential changes in economic conditions. Only $15 million would be available from potential funding sources, including a future deficit reserve.
Several council members said they found the report “depressing” and “sobering.”
“That was the biggest bucket of cold water I’ve felt in a long time,” said Councilwoman Nancy Pyle.
She suggested that the city find alternative sources of revenue and switch to the California Public Employees’ Retirement System, or CalPERS, to save money.
Mayor Chuck Reed has proposed a pension reform measure that calls for setting limits on retirement benefits for new and current employees and retirees. He said the measure would rein in retirement costs and help the city avoid further cuts to services and the loss of hundreds of jobs. The measure would go before voters in March.
“We’re trying to maintain services to our people, and at the same time we’re also trying to make sure that we pay what people have earned,” he said at the council meeting. “Ultimately we have to do both.”
Reed has proposed a fiscal emergency declaration to place the measures on the ballot, but the council did not take action on the declaration at the Tuesday meeting. The Rules and Open Government Committee deferred a vote on the matter until November, when negotiations with employee unions on retirement reform and possible ballot measure language are scheduled to be completed.
