SAN JOSE
– Santa Clara County released a proposed budget for next fiscal
year that incorporates more than 400 layoffs – among other measures
– to balance a $156 million deficit.
And with the economy still in the doldrums and potential impacts
from the state’s budget shortfall still unknown, the likelihood is
things will get worse before they get better.
SAN JOSE – Santa Clara County released a proposed budget for next fiscal year that incorporates more than 400 layoffs – among other measures – to balance a $156 million deficit.
And with the economy still in the doldrums and potential impacts from the state’s budget shortfall still unknown, the likelihood is things will get worse before they get better.
“The economic storm is here,” said acting County Executive Pete Kutras in his budget message.
The county’s $1.9 million general fund pays mainly for services. The total budget, including capital improvements, special programs and reserves, totals $3.3 billion.
The proposal includes some $116 million in spending cuts and new revenues and also uses $20 million in reduced employee benefit costs, $10 million in one-time bridge funding and at least $7 million in reserves. Individual departments were asked to slash between 12 and 14 percent of their budgets.
If it stands, a net of 839 positions – just over half of them filled – will be eliminated. The county has roughly 16,000 employees, including over 10,000 who work full time.
Like local governments everywhere, the county faces slumping revenues from the slow economy that followed the Silicon Valley boom. Rising employee benefit costs are also an issue.
But 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 which ends June 30. Many of the stop-gap and one-time solutions officials said they employed this year to dodge major layoffs or dramatic service cuts have been used up.
Meanwhile, officials said Monday’s proposal doesn’t solve the potential impacts of the state’s own $30-plus billion shortfall. The county could see another $135 million drop in revenue if the state cuts revenues from car tax or the so-called Vehicle License Fee.
If current trends continue, the county expects to face another $80 million “local” deficit in 2004-2005.
The county also outlined a series of workshops next week before supervisors to review the recommendations. Budget hearings and final decisions will occur in June.
Next week’s schedule is as follows:
• May 12 at 1:30 p.m. – budget overview and most general government.
• May 12 at 7 p.m. – public safety, including District Attorney, Public Defender, Pretrial Services, Sheriff, Corrections, Probation and Medical Examiner/Coroner.
• May 13 at 1:30 p.m. – General Services, Assessor, Employee Services, Finance, Environmental Resources.
• May 13 at 7 p.m. – health and hospital system, including Valley Medical Center, Mental Health, Public Health, Drug and Alcohol Services, Custody Health and Community Outreach.
• May 14 at 1:30 p.m. – Social Services, Child Support Services.
Hearings occur in the board chambers at the County Government Center, 70 W. Hedding St. in San Jose.
