City Manager Debra Figone held a press conference late last night to announce that the San Jose budget deficit, long estimated at $116 million, is the result of an accounting error and a misplaced decimal point. The real deficit is one order of magnitude smaller—just $11.6 million. Figone attributed to the error to the furloughs imposed on city employees: “With fewer employees and less time, no one has gone over the figures until now. It really does make a difference where you put the decimal point in your Excel spreadsheet.”

Mayor Chuck Reed had originally wanted to wait until November to consider a proposal to regulate medicinal cannabis collectives. Before yesterday’s vote, Reed said he wanted to see if voters would approve a state initiative that would legalize marijuana for recreational use. But after the proposal’s author, Councilmember Pierluigi Oliverio, agreed to include some flexibility on zoning, taxes and the timing of the final City Council vote on the matter, Reed agreed to support it.

I am so proud to be a resident of San Jose. With all the draconian budget cuts, layoffs in government and education it is easy to be depressed. Yet, San Jose is a shining example of a city that can still think strategically in down times while inspiring hope for a better future for all. This municipal strength is thanks in large measure to the organizing skills of People Acting In Community Together.

In SJI’s weekly Rants and Raves column, thoughts on any topic are welcome. What’s on your mind?

A statewide labor group sent out a sharply worded letter yesterday indicating that it has blacklisted local Democratic political consultant Jude Barry and his company, Catapult Strategies. In the letter, Art Pulaski of the California Federation of Labor (CFL) attacks Barry for “supporting the efforts of an anti-union committee” seeking to qualify a so-called “paycheck protection” initiative.

Rather than lay off workers due to budgetary constraints, the state decided last year to impose mandatory furloughs, which effectively meant a 15 percent pay cut. These furloughs were overturned yesterday by a Superior Court Judge, Frank Roesch, of Alameda County. Some 70,000 workers at 66 agencies will now be going back to work full time. They account for about one-third of state employees who have been subject to compulsory furloughs for the past year.

DA Dolores Carr is pointing an accusatory finger at challenger Deputy DA Jeff Rosen regarding the use of San Jose Mercury News articles on his campaign website. Carr released a statement today charging that Rosen may have violated state campaign finance rules and federal copyright laws. Her campaign also said the use of the articles might be seen as an in-kind contribution that exceeds campaign contribution limits. UPDATED 1:55PM

RESPONSE FROM ROSEN CAMPAIGN POSTED FRIDAY 9AM.

At last night’s City Council meeting, Mayor Chuck Reed asked all city employees to accept a 10 percent cut to their salaries. Without this, he said, either 450 workers will have to be laid off, or hours at the city’s parks, libraries, and community centers would be “cut dramatically.” Though some City Councilmembers countered with a sliding scale proposal, the Mayor’s request received the Council’s support by a vote of 8-3. The proposed cut would affect all city workers, including police officers and firefighters.

In a surprising turn of events, newbie San Jose District 5 candidate Magdalena Carrasco has proven herself a contender by pulling impressive fundraising numbers since February.
Carrasco reported yesterday that she’s raised $20,647 thus far in the race, $3,925 more this quarter than her closest competitor for Nora Campos’ soon-to-be vacant seat on city council.

There seems to be no end in site for San Jose’s budget woes. On Wednesday, city officials announced that because of market losses pension costs for city employees will jump up as much as 43 percent—$60 million—in the coming budget year. This year retirement expenses were $138 million.

Mayor Chuck Reed had some grim news for City Council yesterday. “Although this is the ninth year we’ve faced a significant budget shortfall, this year is by far the worst.” He went on to warn that the city’s expenses are expected to exceed its revenues for many years to come. The only solution, he suggested, is to cut services to community centers and libraries, and to reduce pay and/or benefits to municipal employees.

A sea of blue surged around the Fairmont Hotel last week as the California Police Chiefs’ Association gathered for its annual training symposium. The keynote was a talk on racially-biased policing from Dr. Phil Goff, lead researcher on the Consortium for Police Leadership in Equity (CPLE), the very same expert brought in by the city council last year to see if San Jose police are, in fact, engaged in racially-biased policing).

Larry Pegram, president and co-founder of evangelical group Values Advocacy Council, today declared his candidacy for the District 9 seat on the San Jose City Council, which is being vacated by termed-out Judy Chirco. Pegram was a member of the City Council from 1974 to 1980. His most recent political venture was a short-lived run for the GOP nomination in the 11th Congressional District.

Education is the great equalizer, and as society we must continually work toward improving equity for all students. Even though we continue to make significant strides we have a long way to go. The new muscle being exerted by the Department of Education with enforcement of equity issues is welcome, but will increase the headaches of already resource-depleted schools and their administrations

This is SJI’s weekly open forum, where any topic is fair game. What’s on your mind?

If it is passed, the Proposition 16 amendment on this year’s ballot will require local governments to obtain two-thirds voter approval before they can provide electricity to new customers or expand their services. In other words, citizens could block attempts by their city councils to expand the service area for existing public utilities or create new ones.