San Jose Inside

The City Council discussed one of the world’s most precious resources last week; water. The council had its annual meeting with the Santa Clara Valley Water District. In the past, the two organizations have had some turbulent conversations; however, at this meeting we were all on the same page about conservation and the future supply of water.

Although I was born and raised in San Jose, my visits to the East Side were not commonplace. As a kid, I was advised of general safety issues about the East Side and was warned not to go “there” at night. My father taught English to adult immigrants on the East Side for about half his teaching career, and I used to accompany him when my school was closed. I would sit in the back and meet his students from all over the world. In high school I would go to East Side high school sporting events, remembering that I needed to be careful—at least that is what I was told.

Weighing in on the huge payouts for unused sick leave that the City of San Jose has been paying to some public employees, the Mercury News Editorial Board argued that the expenditures are “a public employee luxury that taxpayers should not have to bankroll.” And, the editorial board rightly placed the blame where it belongs. 

...I did not actually eat breakfast with members of the Chamber of Commerce last week, but I met with them early in the morning—which is a challenge for me since I normally go to bed at 1am. The Chamber, as many of you know, is an interest group that advocates on behalf of small and large businesses. They invited me to attend their meeting for some Q-and-A.

The Chamber, like labor unions, the Democratic Party, the Republican Party, or the League of Conservation Voters, typically endorses candidates running for political office. Endorsements carry clout with some voters, but more importantly, endorsements come with monetary donations, plus independent expenditures for political mail to voters, and volunteers to walk door-to-door on your behalf. In my Council election, the Chamber endorsed my opponent and as a result, they did four independent expenditures on his behalf in addition to donating money to his campaign.

Our County Assessor was quoted on Friday as saying the downturn in real estate values is “worse than expected,” and that more than 90,000 residential parcels will be valued at less then their purchase price. We are living through historic times, with unprecedented negative growth in real estate. That has happened in Santa Clara County only a handful of times: in 1932,1933 and1936, and again in 1978 (after Prop 13) was passed. So what does that mean, other than many depressed homeowners? Well, it means that the City of San Jose’s deficit just catapulted to $77 million.

The City Manager announced Friday that we will have an additional shortfall of $14.3M due to lower property tax revenues on top of the sales tax decline which added another $3M to the deficit. I believe we will also see a sharp fall in our TOT (hotel tax) this quarter. This means less city services starting July 1, 2009 for you. But there is more…

Should San Jose City service levels be cut, and fees for services raised, so that city employees can enjoy more pay?

The Mercury News recently reported that automatic “step increases” will cost the city $10 million in FY 09-10 (almost $8 million to be paid from the city’s general fund). “It’s going to come from layoffs or reducing services…” Councilman Oliverio said…“Or, we can recognize the severity of the situation, bargaining units come together…and come up with a way to save jobs and save the city money.” (Mercury News 3/22).

Last week I responded to many of your questions with a term, “Meet-and-Confer.” This terminology is used in reference to discussions that city management has with unions about almost anything.

Once a labor contract is agreed upon, any thought of a change requires a meet-and-confer meeting. It could be a compensation freeze, sick time, vacation time, grievance, health care, retirement, education reimbursement, uniform allowance, time off with pay to conduct union activities, examining the possibility of using a non- union person to provide a city service, or even discussions about future employees who have not been hired yet, etc… So with the current budget deficit, if we want to have a discussion about city staff taking one day off without pay ($2.88M) to avoid layoffs, then there needs to be a closed-door meeting.

There’s been a lot more chatter about the A’s moving (or not) to San Jose, but you would have to look in the San Francisco Chronicle to find it. Here are some highlights (and lowlights).

Commissioner Bud Selig visited Scottsdale Stadium on Sunday and met for an hour with Giants managing general partner Bill Neukom and President Larry Baer. Baer would not discuss the meeting but hinted Selig affirmed his public stance that he will not allow the A’s to breach the Giants’ territorial rights to San Jose. “From what we could tell, there is no change in his position,” Baer said. Henry Schulman, SF Chronicle, March 16

On March 12, I hosted the second annual budget meeting in my district. My goal was to inform the community about the budget process, the size of our budget, where the revenues come from and different options on trying to deal with the current deficit.

The major message from the residents that attended the meeting was that the city needs to change employee policies and compensation (including sick leave payouts and pensions) before cutting services.

By Diane Solomon
Last November, Californians approved a $9.95 billion down payment for the first electric-powered steel-wheel-on-steel-rail high-speed train system in the nation. They voted yes to an artist’s rendition of sleek tubular trains invisibly zooming through their neighborhoods, connecting California’s major cities and taking them from San Francisco to Los Angeles, and a new green future, in less than 2.5 hours.