Layoffs Likely As San Jose Faces 10th Year Of Budget Shortfalls

SAN JOSE (KCBS) – The San Jose City Council started budget discussions Thursday, and it looks like there could very likely be more layoffs and concessions for city workers next year.

San Jose Mayor Chuck Reed said that what’s most troubling is that the budget shortfall is already larger than expected.

”We’re looking at more difficulties in next year’s budget starting on July 1st,” said San Jose Mayor Chuck Reed. “It’s going to have a shortfall gap of about $70 million, so it’s looking pretty ugly already.”

KCBS’ Mike Colgan Reports:

City Manager Debra Figone said that additional concessions will also be needed from city employees.

”Our recommendation to the council is to continue to pursue a total compensation reduction of 10 percent with our employees,” said Figone. “That would go a long way towards satisfying about $50 million of the $70 million problem. We will also need to look at service reductions and eliminations. There’s probably not a lot of hope for large new revenues.”

Two hundred city employees were laid off earlier this year, including 49 firefighters.

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