It’s truly stunning how quickly the financial fortunes of our
city have changed. Gilroy has gone from $27 million in the bank and
being a stalwart example of fiscal stability to laying off 44
employees in order to stave off a full-blown fiscal meltdown in a
seeming wink of the eye.
It’s truly stunning how quickly the financial fortunes of our city have changed. Gilroy has gone from $27 million in the bank and being a stalwart example of fiscal stability to laying off 44 employees in order to stave off a full-blown fiscal meltdown in a seeming wink of the eye.
Declining property tax revenues, sharply reduced sales tax revenues and lack of fee revenue associated with new development have combined to deliver a vicious blow. Whether or not that blow is more painful now because the city declined to make budget cuts earlier is now immaterial.
The cuts will be painful, and the City Council along with City Manger Tom Haglund have to be fully aware that this might not be the end of it. Things may get worse before they get better.
If the employee unions would cooperate by renegotiating and accepting a pay cut, some of the job losses might be averted. But that’s not often the chosen path for unions. The prevailing philosophy is to sacrifice jobs for the comfort of those who remain employed.
A cursory review of Gilroy’s budget yields one glaring fact: 80 percent of the general fund budget is related to public safety – salaries and benefits for firefighters and police officers.
It’s time to take a hard look at the former. Shuttering the Sunrise Fire Station should be considered. Urgent discussions on reversing the four-firefighters-to-an-engine requirement the fire union won in arbitration should be pursued. And the city should take a long look at getting its firefighters out of the first responder business. Currently, both city firefighters and AMR ambulance teams respond to medical calls. Can we afford both in these times and into the future?
It’s time for the Council to clearly and honestly prioritize city services. Percentage cuts for all departments which formed the basis for the current cuts is a cookie-cutter approach that might not be in line with the Council’s true priorities and, more importantly, might not be in line with what’s best for residents.
Facing a city budget reality like this, especially after years of healthy financial times, is very difficult. That’s why it’s important to get down to brass tacks and keep the priorities straight.
