SAN JOSE
– County officials have approved a balanced budget for 2003-2004
last week, but it may not be balanced for long.
SAN JOSE – County officials have approved a balanced budget for 2003-2004 last week, but it may not be balanced for long.
Officials cut services and employed other measures to help offset a $156 million shortfall mainly caused by slumping tax revenues. But they’ll now cross their fingers but start preparing for impacts expected to come down as the state tries to rectify its own $38-plus billion shortfall.
“We now have to prepare for a second round of cuts in anticipation of the impact from the state’s budget problems,” said Acting County Executive Pete Kutras.
The budget, which begins July 1, totals roughly $3.3 billion.
A total of 845 positions – 290 filled – have been cut from the budget, but 180 employees are being transferred to existing vacancies with no loss in pay. Another 73 have already left the county and 37 face demotions or layoffs.
County officials said they were able to stave off at least 400 layoffs – at least during the short term – after the county’s largest employee union voted to delay part of a previously negotiated pay increase. County executive managers soon agreed to forego any pay increases during the coming year.
The county also employed measures such as deleting vacant positions, tapping reserves, a hiring freeze and $10 million in one-time bridge funding to help offset the deficit.
Santa Clara County officials have estimated they could take a hit of as much as $100 million or more in lost revenues if the state withdraws payments it makes to local governments to help offset the effects of a previous decrease in the car tax or Vehicle License Fee.
State officials have proposed tripling the tax to restore it to 1998 levels and help plug their budget hole, but opponents promise to pursue a legal challenge or ballot referendum.
County officials said this year’s budget balancing actions are difficult because they follow $102 million of reductions and other strategies used to balance the budget in the 2002-2003 fiscal year.
