Santa Clara County Faces $80 Million Budget Deficit
SAN JOSE (KCBS) – Santa Clara County officials had a tough pill to swallow on Wednesday, following a bleak report on the county budget.
County Executive Jeff Smith said the San Jose Redevelopment Agency owes the county three years of back payments totaling almost $63 million.
“In addition, you’ll notice that we also have some deficits in projection for property taxes and a significant problem in the increase of expenditures that are over-budgeted for this year,” Smith said.
KCBS’ Mike Colgan Reports:
In total, the county is facing a revenue shortfall of almost $80 million, meaning they could have trouble paying both bills and employees.
Santa Clara County Supervisor Mike Wasserman, who is a Certified Public Accountant, said the numbers have put them in a tough spot.
“The situation is bleak. We don’t have the cash flow. We had a time a few months ago where we barely met payroll,” said Wasserman. “We’ve got that upcoming concern now. We’ve got one time funds that aren’t coming this time around like they did a year ago. We don’t know what the state’s going to do. That’s out of our control. And the federal funding that we got a year ago is not coming anymore.”
The county could be facing a year-end budget deficit of between $46-67 million and Wasserman said they are being attacked from all sides.
(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)