SAN JOSE (KCBS) – There’s good news to report about San Jose’s budget deficit. San Jose may not have to close libraries and community centers next year because the city’s shortfall has been slashed – thanks to new pension figures.

You could call it an early Christmas present for San Jose, in the form of a budget deficit reduction from $80 million to about $25 million. New pension numbers show the city’s costs have been lowered dramatically after 10% pay cuts for city staff, combined with hundreds of layoffs.

That has some calling for Mayor Chuck Reed to hold off on declaring a fiscal emergency, something he has said he wanted to do.

“I’m hoping that his announcement to do that is premature and that he’ll reconsider that once he sees our next proposals,” said Jim Unland, president of the San Jose Police Officers’ Association.

Various labor unions have been negotiating with San Jose for months, hoping to avoid a public vote on pension reform.

KCBS’ Matt Bigler Reports:

For his part, Reed was optimistic yet cautious about the revised budget.

“This is just one projection for one year, we don’t know the impact on future years, so I think we will delay consideration of the fiscal emergency,” he suggested.

(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)


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