Nov 5, 2009 12:16 pm US/Pacific
SJ Council Looks For Solutions To Looming Deficit
SAN JOSE (CBS 5 / AP) ―
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San Jose's City Hall.
CBS5
The San Jose City Council was holding a special meeting Thursday afternoon to discuss a projected $96.5 million shortfall in the city's general fund for 2010.
The projection was contained in a report released recently by City Manager Debra Figone. Thursday afternoon, council members discussed strategies for closing the budget gap.
City spokeswoman Michelle McGurk said the budget shortfall stems from a combination of factors, including dramatic drops in sales tax and property tax revenues, a declining economy, the state's raid on local resources and requirements that the city compensate for losses in its two pension funds.
Options the City Council were considering Thursday included reducing employee salaries, retirement benefits, health care and other benefits, cutting workers' compensation costs and raising fees and taxes.
They were also consider reducing or eliminating services, which would result in layoffs.
The discussion marks the beginning of budget talks, McGurk said.
"We're starting early because many strategies require negotiation with our bargaining units," she said.
The city manager's report indicates that if the projected deficit is not resolved through other means, it could lead to the elimination of more than 700 positions in the city.
The special meeting will be held at 1:30 p.m.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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