Budget Figures Tell the Tale
Ah, it’s springtime in San Jose. The sun is out, the birds are chirping, and the roses at the Rose Garden are…well, never mind.
It’s also budget season, and the preliminary budget numbers coming from the San Jose city government are not exactly encouraging. The sources for the information that follows are: The City Manager’s Budget Message, The 2007-2008 Proposed Operating Budget, and the city’s transportation department. Read ‘em and weep:
—The city’s budget deficit is not $16 million, but $19.9 million. (There’s a $3.9 million shortfall projected for the General Fund cost recovery development fee programs) “...including the fee program shortfall…the total gap addressed in the Proposed Budget is $19.9 million.”
—“Sales tax revenue estimate for 2007-2008 has been revised downwards by $3.85 million to reflect the combination of lower than anticipated actual collections in the 2nd quarter of ‘06-‘07, lower growth assumptions for the remainder of ‘06-‘07, and lower growth assumptions for ‘07-‘08.”
—Fiscal year 2007-08 represents a 6.3 percent reduction in the General Fund from the previous year.
—Re: employee pensions and other long term obligations: “The only way to address the long term and enduring structural deficit is to increase revenues or decrease the cost of employees…while San Jose is better off than most local governments…the cost of the GASB 43/45 accounting change is still projected to be in the range of $100 million annually…A $2 million down payment on this future obligation is included in this proposal.”
—“Current estimates indicate that $460 million will be needed to fix the transportation maintenance backlog, with another $23-29 million needed to annually keep our streets and related infrastructure in good condition over the long term.”
—Re: other unmet infrastructure needs: “A large backlog of unmet infrastructure needs exists in areas such as transportation and information technology, vehicle replacement, and maintenance at city parks and building facilities. The total needs were estimated
at approximately $445 million with the annual ongoing funding requirement to keep that infrastructure maintained estimated to be approximately $20-25 million.”
—The projected budget deficit for 2008-2009 is $25.5 million. The projected budget deficit for 2009-2010 is $34.3 million!
John McEnery is on vacation this week and will return next Friday.
It’s too bad the city wasted all of that money on the Mexican Heritage Plaza, the Rep, the Grand Prix et. al. while starving basic services. They keep jacking up prices on basics like garbage and sewer rates while funding non-essential frills like those listed above.
If “—“Current estimates indicate that $460 million will be needed to fix the transportation maintenance backlog,” and if ““A large backlog of unmet infrastructure needs exists in areas such as transportation and information technology, vehicle replacement, and maintenance at city parks and building facilities. The total needs were estimated
at approximately $445 million” that tells me the budget deficit needs to be increased by $905 million.
By not putting these two HUGE numbers IN THE BUDGET (keeping them unbudgeted needs) cities do a wonderful fiscal sleight of hand. All you need to do to reduce the deficit is to keep a need—like roads, parks, etc.—out of the budget. If you don’t budget it, it simply doesn’t count to our public servants. It’s like it’s not even there.
Transportation and infrastructure are “in the hole” to the tune of $905 million. It’s a debt. The $20-$25 million spent annually is just so many fingers in the dike.
We can no longer afford spending a quarter million here and a quarter million there on consultants to tell inept and inefficient boards of non profits how to do their bloody jobs. Our road suck, but we want to spend BILLIONS on BART, which will have measley ridership while most of us bump along on our third worl roads and highways.
At the State level it’s even worse. We have gas tax $$ that we voted to be inviolate—a vote we had to make, since previous governors just kept stealing the $$ to prop up the general fund. Now The Governator wants to steal tens of millions more.
This nonsense has got to stop before we go BK.
Hon Lien makes Williams and Campos seem like Einsteins.
But, No Joke #2, Chu didn’t answer the question either. He just defined what owner occupied and rental housing is, and a couple of characteristics of the persons in each; but never addressed the question of the BALANCE between the two.
District 4 is in for a rough ride no matter which of these two gets elected.
Chuck’s endorsement of Hon Lien is mystifying. Is she just Vic Ajlouny’s girl and Chuck went along?
HJ#3—absolutely right! Well, we did get a mile of good road out of the Grand Prix. But I’d rather they had fixed up Alma betwen Monterey Highway and Minnesota—it’s like driving over railroad ties.
C’mon everybody, let’s look at the bright side. While the roads are fit only for tracked military vehicles, the City trees go without care, the streets go unswept, retiree medical benefits go unfunded, etc., we do have a shiny new half billion dollar City Hall!
Gosh, and all of those hugely expensive consulting contracts are absolutely necessary because the City employees who should be doing the job evidently cannot think their way out of a paper bag.
Thanks for that concise accounting, Pete. For years there I thought our Village was in real serious financial trouble.
A few garage & cake sales, and we’ll have this thing beat.
We have the talent now to get things done. Let’s do it.
Bike to Work Day was a blast. Police escort to City Hall, Fish Tacos at El Sabroso. A wonderful raffle and free beer event at Gordon Burch in the afternoon. Sweet!
I hope the Salmon are biting tomorrow!
“Hope is Happening”
Gil Hernandez
Man oh man, Hon Lien was in meltdown last night, answering “I don’t know” to far too many questions at the district 4 forum.
She did not understand a question about balancing rental and owner units in District 4, even after the question was given to her twice…..
See it for yourself:
http://www.youtube.com/watch?v=istuoCavFZE
It was painful to watch the blank look on her face as she struggled to understand what the issues were in district 4.
#6 That’s all true, but just be thankful you are safe.
… er wait a minute. Lemme doublecheck that with an authority on safety.
Dave Cortese, are we non-illegal, non-La Raza types safe too?
Man..it gets worse. I just found these on YouTube, words fail me.
Hon Lien needs to sue Reed and Ajlouny for what they have done to her.
Longer one from forum, three questions:
http://www.youtube.com/watch?v=OWEhlRC1va4
Shorter one from forum, question on Alviso:
http://www.youtube.com/watch?v=vlPxgSfHzXQ
JMO in #4 said: “This nonsense has got to stop before we go BK.”
In looking at that budget, with the unfunded infrastructure backlogs conveniently not written into it, it’s entirely reasonable to conclude that San Jose is already functionally BK.
Good point, JD#9. Can we sell the Taj Gonzal and take the cash to get some decent roads and the parks maintained?
Dear sj,
Is that you Downtown Brown or Reality Check?
OK – fine lots of Cities are in trouble, but they are in trouble because the people elected idiots to lead those cities.
There are also many cities that have very good financial standings that have even managed their unions to a degree possible allowed by State law. Many smaller cities in ths county are included in that bunch.
The unions asked, but the policy makers agreed. Elected better policy makers.
You can be socially moderate or even liberal, but when it comes to finances, always, always be conservative.