San Jose considers across the board budget cuts

Timothy Roberts
Published: May 3, 2005
Silicon Valley/San Jose Business Journal
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Facing a $58 million budget gap for the fiscal year that begins July 1, the city of San Jose is looking at making cuts in everything from public safety to redevelopment.

"The proposed budget successfully closes a $58 million shortfall but not without significant reductions in nearly every service area provided by the city," said City Manager Del Borgsdorf in a statement.

The proposed budget calls for cutting the General Fund by 8.3 percent. The cuts in public safety are the lightest -- 1.5 percent. Cuts across other city services average 8.2 percent. To meet the budget, the city would lay off 78 people and eliminate 62 unfilled positions. The personnel cuts will leave the city with 6,620 positions, about the same number that it had in the 1998-99 fiscal year.

Other proposed budget cuts include $1.1 million that would have gone to the Silicon Valley Workforce Investment Network. The cut is based on the assumption that local job cuts have leveled off.

"While downsizing has been a significant issue in the past few years, the rate of job elimination is flattening out," Mr. Borgsdorf's budget message says.

The proposed budget holds off on most development fees, but the manager's budget message warns that increases are likely in the 2006-07 fiscal year. Code enforcement faces a $278,000 budget cut, which would shift from "proactive" to "reactive," the budget plan says.

The Redevelopment Agency, funded through increases in property tax revenue from its redevelopment sites, will cut its operating budget by 7 percent to $19.5 million.

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