Sick leave payouts are part of the City of San Jose budget deficit problem. These payouts do not discriminate; every employee including management accrues sick leave, and if employed with the City long enough, will be eligible for sick leave payout when they retiree. One exception is that councilmembers do not accrue sick leave.

Most of Mayor Chuck Reed’s State of the City Address, delivered at the Civic Center this evening, dealt—in sometimes painful detail—with the budget mess that the mayor has been forced to deal with since he took office.

He began by defending the city’s Redevelopment Agency, which, like RDA’s throughout the state, is under attack from Sacramento.

The Budget Valentine will be visiting with the Council today at 1:30pm. The Council is having a public study session that will be streamed on the Internet and broadcast on Channel 26. This meeting will include discussion of what cuts will be required based on the budget shortfall.

The murder of shopkeeper Vahid Hosseini and the ensuing charges against Williams Rodriguez were a turning point in the political career of former District Attorney Dolores Carr. Now that Jeff Rosen is DA, the problem with Carr’s involvement in the case through her husband has vanished. But the State Attorney General’s office announced yesterday that it has decided to drop the case.

In my opinion, the Council made two great investments two weeks ago for our tax base and jobs. The Council provided $500,000 of Redevelopment Agency (RDA) funds each to Sunpower and Maxim, totaling a one million dollar investment for economic development. These two companies compete globally, therefore they could have chosen any other location in the world. 

Just when the South Bay live music gets back on its own two feet again, along comes something new to kick a leg out from under it. VooDoo Lounge, the 300-capacity nightclub that’s brought the most diverse mix of shows to downtown San Jose for the last 11 years, is closing at the end of February.

Jerry Brown’s plan to dismantle the state’s redevelopment agencies would make things a lot worse for San Jose’s staggering deficit—and eliminate the funding source for the salaries of Mayor Chuck Reed and the San Jose city council.

As you may remember, two weeks ago I shared that the City of San Jose contracted with a public opinion organization to conduct a telephone poll of 1,000 residents. These residents were asked survey questions from Jan. 13 to Jan .17. In comparison to my web survey, the City did a “scientific survey” which means they called men and women from all council districts, different age groups, ethnically diverse, homeowners and renters who are likely voters. The company responsible is instructed to get a group that mirrors San Jose.

Very rarely does our region get mentioned for innovation outside of the high technology sector. Pres. Obama should take note on what is going on behind the scenes in Silicon Valley, in public education and charter schools, and mention it tonight in his State of the Union Speech.

It is pretty common to hear from residents, when discussing our City budget: “But i pay my property taxes.” As I have covered before on a prior blog post, your property tax bill does not flow 100 percent to the City. Much of it is taken by the school districts, County, community colleges and special districts. (This does not include various parcel taxes, school bonds, hospital bonds, that are collected via your property tax bill.) Even with all these other government entities taking nearly 90 percent of your property tax, this remaining portion is the number-one source of revenue, by a large measure, for the City of San Jose.

Having handily knocked off Dolores Carr in November’s election, District Attorney Jeff Rosen has so far delivered on his promise to make changes big and small in his department. In addition to reinstating the Cold Case Unit, Team Rosen is reinvigorating the Government Integrity Unit, a do-nothing department under Carr, which has been renamed the Public Integrity Unit and put in the hands of John Chase. Rosen also circulated a memo that bars blanket challenges on judges—a pointed (and entirely symbolic) gesture referencing one of his predecessor’s most controversial ploys.

Dean Singleton announced yesterday that he is stepping down as CEO of MediaNews Group—the Denver based company that owns the San Jose Mercury News along with most of the newspapers in the Bay Area. Amid speculation that the move was forced on him by a New York hedge fund that controls the company, Singleton insisted that he wants to focus on strategic planning and leave day-to-day management behind.

It started with a fruit stand more than seven decades ago, and emerged as one of the landmark local grocery stores in San Jose, with branches in Silver Creek and Santa Clara. On February 8, Cosentino’s will be shutting its doors one last time. The reason, according to Dominic Cosentino, is not just the economy but the shifting purchasing habits of Americans over the last few decades: “Everything is favoring the big-box stores today.”

Times have changed since Jerry Brown was last Governor. These days he’s faced with a $28 billion deficit and the realization that he’s going to have to cut somewhere. One possibility is the state’s Redevelopment Agencies, which consume about $5.5 billion in property tax revenues. It won’t be easy. While transferring that money to schools, for instance, could prove popular, the same voters who elected him also approved Proposition 22, which prevents the state from raiding local funds.

More than a year ago, the San Jose City Council was presented with renewing its Microsoft desktop licenses. This can be an expensive line item. We have spent over seven figures in the past for licensing alone on this item.  I thought to myself, and later spoke at the Council meeting, that there is no real competition for this purchase we were about to approve and wondered if we could do better. In the end, we got a government discount from a Microsoft reseller, but it was not truly competitive since Microsoft did not have any competition at City Hall.

Two weeks before Mark Zuckerberg was named Time magazine’s “Person of the Year,” The Mercury News reported on Zuckerberg’s intention to donate much of his wealth to charity. I’d like to offer the following suggestions to Mark, and to any other billionaires looking for charity investment ideas.