City Budget

The guide to local government budget madness

2009-06-30T02:49:02Z

I’ve learned a few lessons recently about how and why local government budgets don’t make sense. Over the past month, I’ve reported on the city budget and asked government officials and union representatives many questions about financial figures and numbers of layoffs. While the officials answered my questions, some budget figures remained nonsensical. I would like to share with The Sacramento Press' readers the following Guide to Local Government Budget Madness.

Rule #1: The number of “positions” being removed is not the number of “people” being laid off.

Back in May, city officials wrote that that they would cut 387 positions. The budget document said that cuts included the “unfunding of 387 FTE.” (FTE stands for full-time equivalent position.) You might think that means 387 layoffs, but don’t be fooled! The “387 FTE” figure included vacant positions. So, in May, the city estimated it would need to lay off 189 people because 198 positions were vacant, according to acting city spokeswoman Wendy Klock-Johnson. So, 387 positions=189 layoffs.

Here are my two cents for people who write budget documents: Include the number of positions to be deleted along with the numbers of actual layoffs. That way people won’t read 387 FTE and think it means 387 layoffs.

I’m using the 387=189 example to illustrate the logic of budget documents, but those numbers don’t even exist anymore. Sacramento approved its budget earlier this month, and the number of layoffs is now 168.

Rule #2: Budget numbers change all the time, and different groups disagree on the numbers.

To be fair, it makes sense that budget numbers change constantly. The government agencies working with the numbers are trying to find ways to close budget gaps and lower the number of layoffs. The day-to-day number crunching is part of the budget process.

What doesn’t make sense, though, is how clashing groups interpret numbers for budget cuts. Let’s take the example of the failed negotiations between city officials and Sacramento Area Firefighters Local 522. Layoffs of firefighters are part of the city’s budget cuts.

Klock-Johnson said earlier this month that the city sent 68 layoff notices to firefighters. But Local 522 said in a June 17 press release that “at least 70” pink slips were sent to firefighters. The number of layoff notices was a point of contention between the two groups earlier this month.

Rule #3: You can always count on local governments to bash the state government.

Before the city balanced its budget earlier this month, it faced a $50 million deficit. Sacramento County confronted an even larger budget gap of $180 million before the Board of Supervisors adopted a proposed budget June 17.

But in terms of deficits, the state’s $24.3 billion budget gap takes the cake.

The locals have reason to be upset with the state. It’s the state, after all, that’s saying it wants to borrow $2 billion from local governments to help balance its budget.

Disputes between local governments and the state government prompt local officials to unleash their anger through cliche-laden statements. An aggrieved Mayor Kevin Johnson showed off his way with words in an e-mail to The Sacramento Press in May.

“The very last option should be robbing our city of its fair share of state aid, because that’s just robbing Peter to pay Paul,” he said.

But the state’s problems are so huge they cannot fully be addressed in The Guide to Local Government Budget Madness--the state’s budget nonsense deserves its own guide.

Rule #4: There is no such thing as objective reality when dealing with budgets, layoffs and negotiations between managers and unions.

Language in contracts is always open for interpretation. Assistant City Manager Gus Vina and Local 522 spokeswoman Robin Swanson took wildly opposite views of a recent firefighters’ contract proposal.

Here’s the controversial sentence from the proposal: “Effective June 19, 2010, salary ranges in terms of bi-weekly rates shall be adjusted by five (5%), and are set forth in Exhibit A-2.”

To Vina, the sentence means that firefighters were trying to clinch a 5 percent salary increase that would begin June 19, 2010.

But to Swanson, the proposed contract’s language means that firefighters want to start negotiating for a 5 percent raise in 2010. The union had also been willing to give up a scheduled 5 percent increase for July 2009.

Vina viewed the contract as setting the 2010 raise in stone, while the union viewed it as a starting point for future negotiations. The City Council voted down the proposal.

So, you ask, is there anything in this example that makes sense? Yes, what makes sense are these facts of civic life: Managers and unions live on different planets. Everything is up for debate. And budget numbers -- especially those that refer to people losing jobs -- are not objective. Not now, not ever.

Kathleen Haley is a staff reporter for The Sacramento Press.

Budget Update: City layoffs to occur in about two weeks

2009-06-17T20:59:59Z

The City Council has changed its original plan to lay off 168 workers Friday, and now layoffs are expected to take place in about two weeks, according to acting city spokeswoman Wendy Klock-Johnson.

The number of layoffs is in flux and may soon change depending on negotiations with five city unions.

On Tuesday, the city adopted its 2009/2010 fiscal year budget and closed out a gap of more than $43 million. The budget that was approved comes with major cuts to city services. Changes to the budget will be amendments because the budget has been adopted.

City officials continued to say Tuesday that many cuts and layoffs could be averted if the unions make concessions.

Negotiations between city managers and Sacramento Area Firefighters Local 522 continue to be controversial. The City Council did not approve the latest agreement with the firefighters’ union, Klock-Johnson said.

The layoff dates are being extended to allow the city more time to come to concessions with unions, she said. The city is lengthening the deadline for layoffs to all 168 workers, including those who are not represented by unions.

City/County Budget Crisis: The weekly roundup

2009-06-08T01:55:25Z

City Distributes 168 Pink Slips

Many city employees learned last week that their last day of work may be June 19. The city distributed 168 pink slips Monday, June 2.

The 168 figure is not set in stone. City officials said fewer people may be laid off if unions make concessions. The city is dealing with a budget deficit in excess of $43 million.

Firefighters Nix Labor Agreement with City

City managers and the local firefighters’ union both said Friday they are willing to head back to the bargaining table after firefighters voted down a labor deal last week.

The city’s decision to distribute layoff notices to firefighters is a key dispute between city management and Sacramento Area Firefighters Local 522. The preliminary agreement that firefighters tossed out would have kept Sacramento Fire Department jobs and cut firefighters’ upcoming cost-of-living salary increase.

The union said the city’s layoff notices were an intimidation tactic. But city managers said they were being straightforward in their negotiations with the union.

The jobs of 68 employees in the Sacramento Fire Department are at stake. Of the 68 employees, 50 are firefighters, nine are engineers and nine are captains.

County Budget Released

Sacramento County released its proposed 2009/2010 budget Friday night. Look for our coverage on the county budget this week.

Kathleen Haley is a staff reporter for The Sacramento Press.

City budget crisis: The weekly roundup

2009-05-25T02:23:36Z

The past week saw several major developments in Sacramento’s budget crisis, from the city’s forecasts of major deficits in 2010 to a campaign by residents against proposed budget cuts to local parks.

Here’s a roundup of the past week’s budget news:

Huge deficit predicted for 2010
The Sacramento City Council is studying a slew of proposed cuts to resolve its $50 million deficit. But once the city deals with the current $50 million deficit, it will face a projected $30 million deficit for the 2010/2011 fiscal year, according to Leyne Milstein, the city’s finance director.

“Gap will grow to $30 million as revenues continue to decline and expenses increase in FY 2010/2011,” Milstein wrote in her recent report to the city council.

Read Milstein’s budget forecast here. Her presentation begins on page 59 of the document.

State may take local funds
On May 19,Californians voted down propositions that aimed to lessen the state’s budget crisis. Gov. Arnold Schwarzenegger’s office said that the failure of the propositions – five of the six died at the polls – means that the state’s budget gap of $15 billion has risen to $21 billion.

Schwarzenegger recently proposed to borrow $2 billion in local funds from local governments if the propositions fail. Local governments, including Sacramento, are afraid the state will take their funds. Schwarzenegger's office told The Sacramento Press May 20 that Schwarzenegger’s proposal to borrow from local governments is still on the table.

The Sacramento City Council declared the city was in a “fiscal crisis” with the aim of telling the state to stay away from Sacramento’s revenues.

Residents create group to oppose planned cuts to parks
A group of residents is challenging the city’s planned cuts to the Department of Parks and Recreation. The group, which is called Rescue Sacramento Parks, is pitching alternative actions the city could take instead of slashing parks services.

Kathleen Haley is a staff reporter for The Sacramento Press. Send your tips about local politics to kathleen@sacramentopress.com.

Firefighters say a deal with city is near

2009-05-29T01:56:14Z

The local firefighters’ union may complete its contract negotiations with the city next week, according to Chris Harvey, spokesman for Sacramento Area Firefighters Local 522.

The union is still confident it will be able to reach an agreement with the city “that’s beneficial to the citizens of Sacramento, as well as the firefighters,” Harvey said.

Gus Vina, the Sacramento assistant city manager negotiating with the union, was not available to immediately return a phone call Thursday.

The city’s $50 million deficit would be resolved through cuts in the proposed budget. The fire department would face cuts of 50 positions and $5 million, the budget document states. Vina has said that the planned cuts to the fire department would not take place if the firefighters decide to give up scheduled pay increases.

Now public: Details on failed deal between city, firefighters

2009-06-27T02:57:58Z

City managers and the local firefighters’ union have widely different views of the most recent failed proposal for the firefighters’ contract. The Sacramento Press readers can join the debate by reading official memos from the recent contract proposal here.

Contract negotiations between Sacramento Area Firefighters Local 522 and city officials failed earlier this week. After the most recent deal flopped, the City Council decided to move ahead with its budget cut to fire 68 firefighters. The last day of the work for the 68 firefighters is July 2, and they will be paid through July 3, according to acting city spokeswoman Wendy Klock-Johnson. The union points out that the firefighters will be laid off prior to the Fourth of July holiday, which means there are higher public safety risks.

The two sides disagreed over the meaning of the language in the latest contract proposal. The proposal includes language referring to a 5 percent pay cut in the 2009/2010 fiscal year, a 5 percent pay raise in the 2010/2011 fiscal year and paid time off.

City officials and union representatives both agree that firefighters were willing to give up the 5 percent salary increase scheduled for next month. However, the groups are divided on how they view the language referring to a pay increase in the 2010/2011 fiscal year.

The paragraphs in the proposal that referred to the 5 percent pay raise in June 2010 were not mentioned in Local 522’s June 23 statement that was sent to media outlets. The statement sent out by Local 522 is available here.

“Effective June 19, 2010, salary ranges in terms of bi-weekly rates shall be adjusted by five (5%), and are set forth in Exhibit A-2, ” according to the proposal for the agreement.

Assistant City Manager Gus Vina contends that the proposal’s language means that firefighters were asking for a 5 percent raise that would kick in on June 19, 2010. He also raised objections to another sentence in the proposal, which states: “This agreement shall remain in full force and effect from June 20, 2009 to, and include June 19, 2010.”

By using the word “include” in the sentence, Local 522 is again saying that the raise would start on June 19, 2010, Vina says.

Local 522 spokeswoman Robin Swanson strongly disagreed with Vina’s arguments about the proposed contract language. "It’s very disappointing that they would put that out there,” Swanson said. “It’s very clear that the firefighters have been willing to give up their raise.”

Swanson also commented on the language that refers to the 5 percent salary increase in 2010. She said the language means that firefighters want to come back to the negotiating table in one year, and negotiate from the same starting point, which was a 5 percent increase.

Swanson raised concerns about public safety. “Sixty-eight firefighters laid off the day before the Fourth of July: That’s crazy,” she said.

Vina responded that the city and Local 522 have been involved in complicated negotiations for months. He said he had “absolutely no level of comfort or confidence” that there could be a successful deal to eliminate the 5 percent raise in 2010 if it was put into the contract.

Vina said the agreement would have meant the city would have to pay firefighters a 5 percent raise in 2010 while other unions receive less.

He said he had a challenge for the union: If Local 522 is honestly saying that the 5 percent raise in 2010 is “up for grabs,” why did the union put the language for the raise in the proposal?

The proposal also had language relating to time off for firefighters: “Employees will receive forty (40) hours, or fifty-six (56) hours in suppression, of paid time off on June 20, 2009.”

The Sacramento Press was able to view the proposal documents after negotiations ended between the union and city managers.

Klock-Johnson noted that materials and conversations about labor relations are confidential during the course of negotiations.

Kathleen Haley is a staff reporter for The Sacramento Press.

Talks go downhill for firefighters' union, city managers

2009-06-19T04:27:04Z

Labor negotiations between the firefighters’ union and the city have gone downhill fast.

The firefighters’ union, Sacramento Area Firefighters Local 522, sent out press releases to media outlets Wednesday that said the union was going to “explore legal options” in its dispute with city management.

The firefighters and city managers are engaging in controversial negotiations because city officials are planning to lay off firefighters if the union does not make concessions. Firefighter and union spokesman Chris Harvey said Tuesday that 41 firefighters may lose their jobs. The City Council approved its budget Tuesday, closing a gap of more than $43 million.

“We now must explore all legal and other options to ensure that firefighters are treated fairly in this process and public safety is protected,” Harvey said in a press release.

Responding to the union’s claim that it may examine legal options, acting city spokeswoman Wendy Klock-Johnson said that a lawsuit has not been submitted to the city. She said she couldn’t comment on a possible lawsuit until she sees it.

Details about the options the firefighters may pursue were not available at press time. Local 522 spokeswoman Robin Swanson was not immediately available for comment Thursday afternoon.

Firefighters are upset that the City Council decided Tuesday to back out of a tentative deal in which firefighters would have been paid salary increases over a five-year period. The salary increases added up to a total of 11 percent by 2014, Harvey said Tuesday. In the deal, the city offered only one year of layoff protections, he added.

The union is angered that the City Council rejected the agreement while firefighters were voting on it, according to the press release. Firefighters also note that they first learned about the city’s rejection of the deal through the media.

The union is indicating that it may fight for the agreement the city rejected Tuesday. “Firefighters are sealing the results from this election to explore legal options that would ensure that the city uphold the agreed-upon contract,” according to the statement.

Union members voted down an earlier deal with city management June 5.

Kathleen Haley is a staff reporter for The Sacramento Press.

State may take local funds, Sacramento sounds alarm

2009-05-21T06:00:31Z

California voters nixed propositions Tuesday intended to ease the state’s budget problems, which Gov. Arnold Schwarzenegger's spokesman, Aaron McClear, said Wednesday means that the state’s deficit of $15 billion has jumped to $21 billion.

Now local governments, including Sacramento's, are worried the state will try to take their funds. Wednesday, Schwarzenegger's office confirmed the Sacramento government's fears: Last week's proposal by Schwarzenegger to borrow $2 billion from local governments is still on the table.

Mayor Kevin Johnson is sounding the alarm, saying that Sacramento will be hurt by the failure of the propositions. The city is already dealing with a projected $50 million deficit for 2009/2010, and a forecast of a $30 million deficit the fiscal year after that. Lending money to the state government would put the city even deeper in the hole.

“The very last option should be robbing our city of its fair share of state aid, because that’s just robbing Peter to pay Paul,” he said in an e-mail to The Sacramento Press.

Johnson said he would be meeting with Schwarzenegger, Assembly Speaker Karen Bass and Senate President Darrell Steinberg about this issue.

McClear said Johnson was correct -- borrowing from local governments was the last option the state considered. Schwarzenegger has always protected local government money in the past, he said. But now, “the voters spoke loud and clear,” and the state’s proposal to borrow from local governments is on the table.

The governor understands how difficult the situation will be for local governments, McClear said.

The City of Sacramento recently released a budget forecast that said low sales tax and property tax returns, as well as unemployment, will hurt the city over the next five years.

Leyne Milstein, the city’s finance director, said Wednesday that the city should assume the state will take local government revenues.

The city has “an obligation” to balance its budget, she said, adding that she hopes the state remembers this obligation as it seeks to balance its own budget.

She’s specifically worried about the state taking away city property tax revenues.

In an effort to vocally oppose the state’s plan to borrow from local governments, the Sacramento City Council formally declared Tuesday that it is in a “fiscal crisis.”

City: Layoffs to occur even with union concessions

2009-05-08T00:51:04Z

City management will still need to lay off staff even if all of its unions make concessions, according to the city’s finance director.

Sacramento Finance Director Leyne Milstein said she could not say how many layoffs would be needed if all the unions make concessions. That’s because the City Council will make the final decisions on cuts to services and programs, Milstein said.

Concessions from the unions will not create enough savings to avoid layoffs, Milstein said.

The city’s proposed budget aims to resolve a $50 million deficit.

If the unions do not make concessions, city management plans to lay off 189 city employees.

At its May 19 meeting, the City Council will address the proposed budget.

The city is in negotiations with its unions, which include the firefighters’ union, Sacramento Area Firefighters Local 522, and the Stationary Engineers Local 39. Sacramento government has eight labor unions.

The Sacramento Police Officers Association is the lone union at this time that has made concessions.

Mayor Johnson seeks "fiscal crisis" designation for city

2009-05-15T22:05:45Z

The following press release was issued by Mayor Kevin Johnson's office Friday:

Mayor Johnson to Ask City Council to Declare “State of Fiscal Crisis”

Move Designed to Help Prevent State from Raising City’s Depleted Coffers

SACRAMENTO -- Sacramento Mayor Kevin Johnson will ask the City Council on Tuesday to declare a "State of Fiscal Crisis" because of the city's deepening budget woes.

Sacramento will join more than 100 cities in the state that already have or plan to declare a fiscal crisis. These actions by communities statewide follow a recommendation by the state's Department of Finance to borrow $2 billion in local property taxes to meet the state's budget shortfall, a move Mayor Johnson said he opposes.

“Siphoning off local property taxes at a time we need every penny will further devastate our community and hurt everyone in our city,” said Mayor Johnson. "The state should keep its hands out of the city's pockets."

In a deal struck in the early 1990s, the state began to tap local property tax revenues from California cities. The loss of these billions of dollars has left the city in a precarious position, even before the economic downturn drastically cut funds available to the city for services.

According to Mayor Johnson, the city faces a budget deficit of at least $50 million. Property tax revenues have dipped an additional $7 million since mid-year, putting the city in dire fiscal straits. Barring additional concessions from labor unions, the city will need to unfund as many as 387 full-time positions as part of an overall plan to cut labor costs, services, supplies and maintenance.

Firefighters dispute city's argument on layoffs; others fear planned cuts

2009-05-05T03:17:51Z

The local firefighters’ union is objecting to city management’s comments about Sacramento's budget crunch and possible layoffs for fire department staff.

At the same time, the Downtown Sacramento Partnership and Sacramento’s neighborhood services department both expressed concerns Monday about the potential budget cuts being considered by the city.

The proposed 2009/2010 city budget, released Friday, seeks to address a $50 million deficit. The City Council will address the proposed budget at its May 19 meeting.

Among other cuts, the budget proposes to lay off 189 city employees. The budget calls for 387 positions to be slashed. Because 198 of those positions are vacant, the city would need to lay off 189 staffers, according to a city spokeswoman.

Chris Harvey, spokesman for the Sacramento Area Firefighters Local 522, said he disagreed with the way the city is framing its argument that firefighters need to give up scheduled pay increases.

The city is arguing that there must be concessions from the union or there will be layoffs.

“That argument is disingenuous,” Harvey said, adding that the city can choose how it spends its general fund monies.

Still, Harvey said that the union’s current negotiations with the city are going well.

Wendy Klock-Johnson, city records manager and acting spokeswoman, responded to Harvey’s criticism. She said Harvey is correct, in the sense that the city does not have a set plan that says it must reduce staff when it is in a difficult financial situation.

The city works very hard to minimize reduction of staff whenever possible, Klock-Johnson said.

Sacramento’s budget document states that the fire department would lose 50 positions and $5 million. Gus Vina, a Sacramento assistant city manager, said last week that if the firefighters’ union gives up scheduled pay increases for firefighters, the city would not need to make the cuts.

Meanwhile, Michael Ault, executive director of the Downtown Sacramento Partnership, is concerned that the proposed budget cuts could damage the quality of life downtown.

He raised concerns about possible impacts to downtown parks.

“We need to be careful that we’re not reducing to the extent that we lose the ability to maintain the environment down here,” he said.

The budget proposal is also worrisome to the city’s Neighborhood Services Department. Vincene Jones, the department’s director, said every department is going to have to make hard decisions about its budget.

She said she’s afraid that if her department loses one or two people, it will affect the department’s “personal touch” in its work. Jones noted that the department works with many groups outside of city government, including SMUD, Home Depot, PG&E, and Loaves and Fishes. Neighborhood Services also supports every city department, she said.

Jones said she hopes the community will work with the department, understand the city’s tough financial situation and adjust to the “missing pieces.”

Vina said last week that the city wants all of its unions to make concessions. The sole union at this time that has made concessions is the Sacramento Police Officers Association. The union ceded July salary increases for its members so police department positions would not be cut.

At this point, several other unions have not made concessions.

Layoffs for 68 firefighters, 200 other city workers

2009-06-24T02:04:11Z

A total of 68 firefighters are scheduled to be laid off during the first week of July, assistant city manager Gus Vina said on Tuesday.

Mayor Kevin Johnson told reporters Tuesday that the Sacramento City Council did not accept the latest tentative deal with Sacramento Area Firefighters Local 522. Since the firefighters and city managers did not reach a labor agreement, the city plans to go through with its plan to lay off 68 firefighters. The firefighter layoffs are part of the city's budget cuts.

"This is a setback, but the world doesn't stop here," Johnson told reporters Tuesday night.

The city also did not arrive at a deal with Stationary Engineers Local 39, according to Vina. This means that about 200 city workers who are represented by Local 39 will be laid off. The workers who will be laid off will receive pay through July 3. Their last day of work will be July 2, said acting city spokeswoman Wendy Klock-Johnson.

Kathleen Haley is a staff reporter for The Sacramento Press.

Firefighters scrap labor deal with city, talks may resume

2009-06-06T02:28:42Z

The local firefighters’ union Friday scrapped a deal with city management that would have cut firefighters' salary increases and maintained jobs.

Sacramento Area Firefighters Local 522 is attributing the failure of the deal to the city’s decision to send layoff notices to firefighters earlier this week. Meanwhile, the city is saying that it was straightforward in its negotiations with the union.

The city, which is facing a deficit of more than $43 million, plans to lay off 68 people in the Sacramento Fire Department if the union does not make concessions.

Both sides said Friday that they are ready to start negotiations again. Local 522 spokesperson Robin Swanson said firefighters are willing to go back to the negotiating table and “figure this out.”

“The city needs to operate in good faith,” she said.

The city is asking for concessions from the union to help balance its budget and avoid fire department layoffs, said Gus Vina, assistant city manager. “This issue is too important for us to give up on."

Under the terms of the deal that was voted down, firefighters would have skipped their 5 percent cost-of-living increase scheduled for July. The agreement guaranteed firefighters a 1 percent pay increase in July 2010, to be followed by a 2 percent raise in 2011. Two-thirds of union members voted down the agreement Friday, Swanson said, and the deal failed with 66 percent opposed and 34 percent in support.

The union expressed anger that the city sent pink slips to firefighters after the groups forged a preliminary deal.

The union sent out a press release to media outlets Friday morning saying that more than 70 firefighters received layoff letters on Tuesday, after the union had already made the early agreement with the city and before union members started voting on it.

The city’s move "is creating all kinds of mistrust among firefighters who thought they had a deal with the city,” Swanson said before the results of the vote were announced.

The city’s decision to send the layoff notices was either meant to intimidate the firefighters or the result of “gross incompetence,” Swanson said.

But Vina said the city was clear in its negotiations with the union. The union knew layoff letters were coming, he said.

From the beginning of negotiations, “Local 522 [and] city staff knew that we were looking at a reduction of 50 firefighter positions, as part of the necessary reductions for next year if we don’t get the labor concessions,” Vina said. “They knew the letters for the layoffs were going to go out on June 1.”

City spokesperson Wendy Klock-Johnson provided numbers that differed from Swanson’s. On Monday, the city sent 68 layoff notices to firefighters and 100 layoff notices to other city staffers, according to Klock-Johnson.

Vina explained that the 68 layoffs figure includes 50 firefighters, nine engineers and nine captains. The engineers and captains have the ability to move down to firefighter positions, which would displace people in those positions.

Firefighters make deal with city; union to cast votes on agreement

2009-06-02T02:43:42Z

Sacramento's firefighters’ union and city management have made a preliminary deal to maintain jobs that city officials hope will be approved by union members later this week. A union spokeswoman, meanwhile, is saying that no one is “thrilled” about the proposed agreement.

The deal, which was arranged Friday and made public Monday, would maintain 50 positions in the city’s fire department and take $5 million off the city's deficit, said Gus Vina, an assistant city manager who is negotiating with the city’s unions. A key part of the agreement is that the firefighters would give up their 5 percent cost-of-living pay increases that had been scheduled for July, Vina said.

Instead of the 5 percent in July, the firefighters would receive a 1 percent raise in July 2010, and a 2 percent raise in 2011. “So they get basically 3 percent back on the 5 percent they forego,” he said.

“We’ve been working towards an agreement for many months now,” Vina said. “So I’m very happy that we’ve reached tentative agreement with the fire union.”

Sacramento Area Firefighters Local 522 spokeswoman Robin Swanson said that the union’s firefighters don’t want to see layoffs, adding that it’s their job to save lives. The firefighters have been willing to make major concessions, she said, including cutting their own pay. She said she didn’t think anyone was “thrilled about” the tentative deal.

The union’s members will vote on the proposed agreement Wednesday, Thursday and Friday this week, according to Swanson.

The city’s $50 million deficit has shrunk to $43.6 as a result of a recent deal that was approved by the Sacramento Police Officers Association, Vina said. If Local 522 accepts the proposed agreement, the city's deficit would be $38.6, he noted.

Vina said he hopes to know whether the agreement passes by Friday afternoon.

Kathleen Haley is a staff reporter for The Sacramento Press.

Firefighters' jobs likely to be saved

2009-07-02T03:28:31Z

The Sacramento City Council is about 99 percent sure that no firefighters will be laid off this week.

The local firefighters’ union and city officials reached a breakthrough in negotiations Wednesday and have made a tentative agreement to not lay off 68 firefighters. The last step will be for Sacramento Area Firefighters Local 522 members to vote on the agreement this week. It is likely that Local 522 members will vote in favor of the agreement because they proposed it to city officials.

While dozens of firefighter jobs are likely to be saved, about 180 city workers in other departments still face layoffs on Thursday, according to Assistant City Manager Gus Vina.

Several councilmembers returned from vacation Wednesday afternoon to approve the firefighters’ deal in a private meeting at City Hall. Mayor Kevin Johnson and six councilmembers talked to reporters after the private meeting.

“It is a very good day in the city of Sacramento,” Johnson said.

City officials wanted to balance the budget and protect public safety, and it’s likely that those goals will be met, Johnson said.

David Dolson, a firefighter and representative of Local 522, said union members are very happy that they’ve been able to both provide high quality public safety and save firefighters’ jobs. Ensuring that the community has the best fire protection has been “our main goal the whole time,” Dolson said.

The union will recommend to its members that they vote in favor of the contract, he said.

The council’s unanimous approval of the deal marks the end of this year’s highly controversial negotiations between Sacramento Area Firefighters Local 522 and city managers. The Wednesday agreement came back from the dead: The city and Local 522 had ended negotiations last week.

City officials said last week that up to 68 firefighters were scheduled to be laid off. The union had also threatened to file a lawsuit against the city, claiming that city officials had engaged in “unfair bargaining practices.”

The deal means that firefighters would give up salary increases over the next 30 months, according to Local 522 and city officials. The agreement also states that the city would promise to not lay off firefighters for one year, union representatives and city officials said. Firefighters will give up the 5 percent increase scheduled for this month.

The city will save about $10.8 million as a result of the deal, according to Vina.

The Sacramento Press was not able to obtain a copy of the agreement, and cannot independently verify the details of the agreement until it is public.

Councilmembers Bonnie Pannell and Steve Cohn did not attend the closed session. The members who attended formed the required quorum.

Kathleen Haley is a staff reporter for The Sacramento Press.

City police expect to face more mentally ill people in crisis

2009-09-03T02:13:26Z

The city expects that its police officers will face more mentally ill people in crisis as a result of budget cuts to Sacramento County's Department of Behavioral Health Services. The budget cuts that will ricochet back to the city are spurred by the state: The state is providing less money to the county for mental health, and the county’s resulting cuts will affect the city, according to a Sept. 1 report from city officials.

Sacramento County expects to lose more than $10 million in state funding that would go toward its Behavioral Health Services, according to the city’s report. The state is dropping the funding because of its ongoing budget crisis.

To address the lack of mental health funding, the county department intends to shut down its crisis stabilization unit and cut 50 of 100 beds at the Sacramento County Mental Health Treatment Center on Stockton Boulevard, the report notes. At the crisis stabilization unit, adults have received crisis intervention and stabilization services for up to 23 hours, according to the county's website. But the cuts at the county mean the city will face a larger burden to address citizens’ mental health problems.

“A reduction of these services will have a negative impact on our ability to deliver services to the community,” the city’s report states. “We anticipate a significant increase in calls for service for people in crisis, and an increase in arrests as our options will be severely limited.”

Sacramento Police Department spokesman Norm Leong said the police have been dealing with occasional closures at the county mental health treatment center for months. At various times, the center has also not been able to accept new patients, Leong said.

The police department responds to calls about people who cannot take care of themselves, or who are suicidal or dangerous to others, Leong said. When there was adequate county funding, the city police would take the mentally ill person to the county’s mental health treatment center, he explained.

Now, the police department has been trying to take mentally ill people to local hospitals or facilities, depending on the individual’s health insurance, Leong said.

The police can also arrest the mentally ill person if he or she is charged with a crime, he said, emphasizing that there must be a criminal reason in order for the police to make the arrest. The Sacramento County Main Jail has mental health facilities and mental treatment, he noted.

Finding a way for the person to receive mental health treatment “ultimately is the goal,” Leong said.

The police department does not keep statistics on the number of mentally ill people with a criminal charge who are booked at jail instead of in a mental health facility, he said.

Other state cuts affecting the city include the state’s plan to take $19.6 million from the Sacramento Housing and Redevelopment Agency in 2010. The state plans to take another $4 million from the city in fiscal year 2011, according to the city’s report.

The report also notes that the state will cut $1.3 million in grant funding for Sacramento Department of Parks and Recreation programs that serve disabled teens and provide child care and adult day care.

The report to the Sacramento City Council on budget cuts is available here.

Kathleen Haley is a staff reporter for The Sacramento Press.

City releases proposed budget; 189 planned layoffs

2009-05-02T03:21:43Z

The city of Sacramento is considering 189 layoffs as one part of its effort to address its $50 million deficit, according to its most recent count of potential layoffs.

The proposed budget figures, released Friday, mean possible layoffs for 189 people, explained city records manager and acting spokeswoman Wendy Klock-Johnson.

She noted that she hopes the public will read the budget documents and “be an active part of the process.”

Sacramento’s 2009/2010 budget states that the city will need to cut 387 positions.

Klock-Johnson explained that the 387 positions figure means that 189 people could be laid off. That’s because vacant positions make up the remaining 198 jobs.

The City Council will address the proposed budget at its May 19 meeting.

Klock-Johnson said the city has been proactive, and has been tightening its belt since September 2007. She noted that Sacramento’s economy has not yet turned for the better.

The budget document notes that the top two reasons the city is seeing reduced revenue are “the decline in both the real estate market and taxable sales.”

If the city’s labor unions refuse to make concessions, all 189 layoffs will take place, Klock-Johnson said.

Sacramento Area Firefighters Local 522 is currently in negotiations with the city.

The Sacramento Police Officers Association is the one union that has so far made concessions to the city. The police department will not experience layoffs because the union agreed to give up July salary increases for its members.

Several other unions have not made concessions at this time.

City passes budget, 168 workers to be laid off Friday

2009-06-17T05:29:38Z

The Sacramento City Council’s unanimous approval of Sacramento’s budget Tuesday means that city services could face major cuts and that the last day of work for 168 city employees is Friday. While the council adopted the budget, the situation may soon change because some of the city’s key unions, including its firefighters’ union, have not yet finished negotiations with the city.

Sacramento has balanced its budget and closed a gap of more than $43 million. City officials continued to say Tuesday that many cuts and layoffs could be averted if the unions make concessions. Since the budget has now been approved, any changes to the budget would be amendments.

Of the 168 layoffs approved with the budget, 41 will be from the Sacramento Fire Department, according to the latest numbers from the labor union that represents city firefighters.

The Sacramento Area Firefighters Local 522 and city managers are in the midst of controversial negotiations. Members of the firefighters’ union will finish voting on their latest tentative agreement with the city Wednesday afternoon. The results of the vote won’t be available until Thursday, said union spokesman Chris Harvey.

Several council members pressed for union concessions during the meeting.

"We need them to step up now," said Councilwoman Sandy Sheedy.

The final deadline for unions to approve labor agreements with the city for the 2009/2010 fiscal year is June 30 at midnight, according to acting city spokeswoman Wendy Klock-Johnson.

City firefighters and Local 522 member Brandon Doughty told the city council that he was one of the firefighters who would be laid off. In his remarks, he referenced the city government's slogan: “Get the customer to success.” He said that the layoffs mean that getting the customer to success is the last thing the city is concerned with. The city has made poor financial decisions in the past, he said.

Councilman Steve Cohn agreed in part with Doughty’s comments, saying that the city has approved some “foolish expenses” in the past. However, reversing those past decisions would not change the budget situation now, he said.

Harvey said after the vote that the city is unfairly saying that union concessions are the way to fix the city’s budget problems.

City employees receive pink slips, 168 possible layoffs

2009-06-03T04:54:26Z

A number of city employees received pink slips Monday that said their last day of work would be June 19. Though 168 workers received the layoff letters, city officials said the number of potential layoffs would go down if unions make concessions.

The city is planning layoffs and cuts to services to address a budget deficit of more than $43 million.

Sacramento began its budget planning for the 2009/2010 fiscal year with a $50 million deficit. The deficit figure dropped to $43.6 million in March after the Sacramento Police Officers Association made concessions on pay increases, said Gus Vina, an assistant city manager.

The firefighters’ union, Sacramento Area Firefighters Local 522, made a tentative deal with the city on Friday. Union members will vote this week to decide whether to approve the deal, which would cut their scheduled pay increases. The city plans to slash 50 positions in the fire department if the union does not accept the agreement.

Another major union, Stationary Engineers Local 39, is in negotiations with the city.

“We have not cracked that wide open,” Mayor Kevin Johnson said Tuesday, referring to the status of the city’s negotiations with Local 39. He said that if the firefighters’ agreement is approved, the city would be in “much stronger position” with Local 39.

Kathleen Haley is a staff reporter for The Sacramento Press.

Residents fight city's planned cuts to parks

2009-05-22T02:31:53Z

A group of Sacramento residents is fighting the city’s proposed cuts to its parks system and providing suggestions for maintaining park services.

The city’s proposal to cut parks services is one of many possible reductions council members are considering as they deal with a $50 million budget gap.

About 15 members of the group, which is calling itself Rescue Sacramento Parks, attended Tuesday’s City Council meeting to voice their concerns about cuts to parks. Members of the group are involved in neighborhood associations.

Craig Powell, the group’s chairman, told the City Council that the proposed budget cuts to parks have “deeply alarmed Sacramento’s neighbors, neighborhoods and citizens.”

The city is proposing to cut about $8.3 million from its Department of Parks and Recreation. The city explains that the actual numbers of layoffs would be more than 145 positions. “Note that, given that multiple part time, seasonal staff members in recreation services equal one (full time equivalent) position, the total number of people employed by Parks and Recreation will be reduced by far more than 145,” according to the city’s budget document.

In a May 19 letter to Mayor Johnson, Powell wrote that the cuts to parks would create public safety and health problems.

“Not only would the cuts seriously degrade Sacramento’s parks, they pose a very real and serious threat to the health, safety and vitality of many of our city’s neighborhoods,” Powell wrote. “We ask that you protect us from such threats and reject these cuts, doing your part to protect the basic fabric of our neighborhoods from unraveling.”

Mayor Kevin Johnson said city staff will analyze the group’s recommendations.

Johnson and Councilman Kevin McCarty pointed out that the group came before the council with proposals. “I want to echo what Councilman McCarty had talked about – that you brought us proposals and ideas, and I think that’s great and that’s refreshing,” Johnson said.

Some of the group’s proposals include: raising park user fees, contracting with the private sector for park maintenance, and analyzing the Parks and Recreation Department’s recreation programs to see if they can be cut further.

The group argues that recreation programs could be cut more in order to preserve park maintenance services.

City weighs firefighters' new labor proposal

2009-06-09T02:21:19Z

City management was not yet ready to comment at 5 p.m. Monday on the local firefighters’ union's latest proposal on pay and layoffs.

Sacramento Area Firefighters Local 522 has pitched a new proposal to put salary increases on hold for the next 30 months if the city will guarantee no layoffs throughout that period of time, said Local 522 spokeswoman Robin Swanson.

Swanson described the proposal as “inherently fair" and said it would bring more than $10 million in savings to the city.

Acting city spokeswoman Wendy Klock-Johnson did not have an update Monday afternoon on the city’s reaction to the union’s proposal.

City managers and firefighters resumed negotiations after firefighters voted down a deal Friday. In the vetoed deal, firefighters would have not received a 5 percent cost-of-living increase scheduled for July. The nixed deal featured a 1 percent pay increase for firefighters in July 2010 and a 2 percent increase in 2011.

Kathleen Haley is a staff reporter for The Sacramento Press.

Residents to see 9 percent hike in utilities rates

2009-06-24T04:55:57Z

City utilities rates will jump 9 percent for customers in the 2009/2010 fiscal year and 9.2 percent in the 2010/2011 year, the Sacramento City Council decided Tuesday.

The Utilities Department will also need to lay off 38 employees to adopt city budget cuts and because the department needed a rate increase higher than 9 percent, according to the department’s business services manager, Jamille Moens.

The department attributes its financial woes to the recession, increased operating costs and new regulatory and environmental requirements. In addition, rates for city utilities services were not increased in the 2008/2009 fiscal year.

A divided city council approved the rate increases in a 6-3 vote, with Mayor Kevin Johnson and Councilmembers Ray Tretheway and Sandy Sheedy voting against the rate hikes.

Johnson said he could not believe that the department has done everything necessary in order to be efficient.

The 9 percent increases were suggested by Councilmember Steve Cohn earlier this month. Cohn suggested the 9 percent increases in response to the department’s request earlier this month for 12 percent increases.

Cohn said he wanted to see “management of this department really focused on being the most efficient it can be with only a 9 percent increase this year.”

Assistant City Manager Marty Hanneman, who oversees the department, told Cohn it was the department’s goal “to live within our means” and look for ways to be more efficient.

Sheedy, who voted against the 9 percent increases, said people in her district are struggling with rising living expenses. “I have people in my district who just can’t take any more raises,” she said.

The Utilities Department earlier this month asked the city council to raise rates 12.2 percent in the 2009/2010 fiscal year and 12.4 percent in the 2010/2011 fiscal year.

Kathleen Haley is a staff reporter for The Sacramento Press.

970 jobs sliced

2009-07-03T02:18:02Z

For about 180 city employees and roughly 790 county employees, Thursday was the last day of work.

The city layoffs are part of the budget cuts the city approved when it passed its budget last month. When it passed its budget, city officials closed a $50 million deficit.

County layoffs came with the Board of Supervisors’ approval of its proposed budget last month. The county government had faced a $180 million deficit. For its final budget in September, the Board must still close out a $19 million budget gap in the state-mandated programs the county administers, according to Linda Foster-Hall, the county budget officer.

Some of the city’s unions made concessions to city managers in return for no layoffs. But some of the unions, including Stationary Engineers Local 39, did not make deals with the city.

The union represents a wide variety of workers in numerous city departments, including code enforcement, parks and recreation, parking enforcement and the solid waste division.

Mayor Kevin Johnson told reporters Wednesday that the failed negotiations with Local 39 were "disappointing."

“It’s the city workers who are impacted by this,” Johnson said. “And our team of negotiators went back and forth with the leadership of Local 39, trying to engage them over and over. And, at some point -- I cannot tell you why -- there was just not willingness at their part to negotiate.”

But Local 39 representatives claim that city officials were not interested in giving union members layoff protections.

“While other groups have been offered a no-layoff guarantee in exchange for wage concessions, the city adamantly refuses to do so for non-safety workers,” according to a Local 39 written statement.

Joan Bryant, director of public employees for Local 39, said Thursday that city officials “walked away from the talks.” The layoffs are unfortunate, she said.

The numbers of layoffs for both city and county employees were not exact by Thursday afternoon. The county sent out 793 pink slips to employees last month, but the number of total layoffs may be different when the county finishes calculating the exact numbers in the next two weeks, according to county spokesman Zeke Holst.

The numbers are not yet set in stone for several reasons, according to Holst. One of the reasons the numbers are still unclear is because there are employees choosing to retire, he added.

He also explained that the county is in the midst of “bumping” procedures. An employee who has seniority can move down to a lower position, he explained. When these employees move down to lower positions, they “bump” the people in the lower positions out of their jobs.

Kathleen Haley is a staff reporter for The Sacramento Press.

Firefighters say they will sue city for "unfair bargaining"

2009-06-24T22:16:48Z

Local firefighters are now saying they will sue the city, a day after the City Council decided to lay off 68 firefighters.

The firefighters’ union, Sacramento Area Firefighters Local 522, sent out a press release Wednesday alleging that city officials have engaged in “unfair bargaining practices.”

The city has "not received or been served with any litigation documents," said acting city spokeswoman Wendy Klock-Johnson. " Until such time [that] we are and they are reviewed by the City Attorney we are unable to comment."

Local 522 firefighter and spokesman Chris Harvey expressed frustration with the city’s decision to throw out the latest tentative deal between the two parties. The most recent agreement featured a 5 percent salary cut for firefighters during the 2009/2010 fiscal year. The deal would have also required city officials to not lay off firefighters for one year.

"The city’s rejection of the firefighters' fair and reasonable deal supported by Councilmembers Lauren Hammond and Steve Cohn to take pay-cuts in return for no layoffs clearly shows that the city’s intent all along was to lay off firefighters,” Harvey said in a statement.

An earlier deal between the two groups failed. It included a five-year agreement with pay raises that totaled 11 percent by 2014. In another doomed deal, firefighters would have received small raises in 2010 and 2011, and would have skipped their planned five percent cost-of-living increase.

Kathleen Haley is a staff reporter for The Sacramento Press.

City/County budget crisis: The weekly roundup

2009-05-31T19:15:07Z

If State Demands City Funds, City Will Have the Money

Schwarzenegger’s recent proposal to borrow $2 billion from local governments has angered cities and counties, including the city of Sacramento. The proposal aims to help the state cope with its budget deficit -- the latest number for the state’s deficit is $24.3 billion.

At first, Sacramento reacted to the state proposal with alarm. But Mayor Kevin Johnson’s recent comments indicate that the city’s fears have somewhat dissipated. The city has a way to pay up if the state asks to borrow its money.

The city can use up to $12 million in its “risk funds” to pay the state, Johnson said Friday. A May 22 report by city staffers explained that these funds “are reserved to cover city liability settlements over the life of a claimant.”

While the city’s fears have calmed a bit, city officials note they are still worried. Johnson said it would be a bad precedent for the state to borrow money from cities. He also said Friday that he was worried about the possibility of the state taking a long time to pay back the city of Sacramento.

“Sacramento can tap into our risk funds...but what concerns me more so is that when the state borrows money, they don’t have a good history of paying back the full amounts in a timely manner,” Johnson said.

The city is working to resolve its $50 million deficit.

County Budget On the Way

The county will release its proposed budget Friday, June 5, said county spokesman Zeke Holst. The proposed budget will tackle the county’s $180 million projected deficit.

Kathleen Haley is a staff reporter for The Sacramento Press. Send your tips about local politics to kathleen@sacramentopress.com.

Firefighters may take 5 percent salary cut

2009-06-23T22:12:26Z

The local firefighters' union and city officials are publicizing a new one-year labor agreement for firefighters.

The deal between the Sacramento Area Firefighters Local 522 and the city would consist of a 5 percent salary cut for firefighters during the 2009/2010 fiscal year. The other key component of the deal is that city officials have promised not to lay off firefighters throughout the one-year period.

Local 522 and city officials have been sparring over a new contract for firefighters. City officials planned to lay off dozens of firefighters as part of city budget cuts. This tentative contract for the firefighters’ union differs from earlier versions which included raises and longer periods of time.

Five days ago, Local 522 said it would “explore legal options” in its dispute with city managers. But the mood between the two parties appears to have changed. Swanson said Tuesday that the union wouldn’t necessarily need to examine legal options if the new deal is passed.

In the last tentative deal between the union and City Council, firefighters would have been paid salary increases over a five-year period. The pay increases added up to a total of 11 percent by 2014. The City Council backed out of the deal.

Firefighters nixed a separate deal with the city earlier this month. In that proposal, firefighters would have given up their 5 percent cost-of-living increase scheduled for July. They would also have received a 1 percent pay increase in 2010 and a 2 percent increase in 2011.

Local 522 spokeswoman Robin Swanson said the new one-year contract deal addresses concerns raised by city officials, who did not want to extend layoff protections for longer than one year.

The one-year contract will “get us out of the woods,” Swanson said.

Council members Steve Cohn and Lauren Hammond are appearing at a press conference tonight with Local 522, which means that at least two council members support the deal.

Council members will vote on the tentative agreement in a closed session at tonight’s City Council meeting. Firefighters may vote on the proposal over a two-day period this week.

Kathleen Haley is a staff reporter for The Sacramento Press.

City Council to consider 9 percent rate hikes for utilities

2009-06-12T02:42:52Z

The Sacramento City Council will consider raising city utilities rates by 9 percent for the 2009/2010 fiscal year at its June 23 meeting. Under the council’s plan, the rates would also jump another 9 percent in the following fiscal year.

Council members are now examining two sets of 9 percent hikes after they abandoned on Tuesday a plan by city staffers that would have raised rates 12.2 percent in the 2009/2010 fiscal year and 12.4 percent in the 2010/2011 fiscal year.

Councilman Steve Cohn said Tuesday that residents would not be able to afford 12 percent rate hikes during the current recession.

Jamille Moens, business services division manager at the Department of Utilities, said Cohn’s 9 percent proposal -- instead of the 12 percent proposal -- would mean more city employees would need to be laid off.

The Utilities Department will present findings June 23 on how the 9 percent proposal could lead to layoffs and service reductions, said acting city spokeswoman Wendy Klock-Johnson.

The Utilities Department told the City Council that it is in bad shape with its finances. Moens’ presentation attributed the department’s troubles to the recession, increased operating costs and new regulatory and environmental rules. Moens also noted in her presentation that the department did not raise rates in the 2008/2009 fiscal year.

The City Council is weighing many budget cuts and city employee layoffs as it confronts a deficit of more than $43 million.

Kathleen Haley is a staff reporter for The Sacramento Press.

Mayor Johnson: City faces hardships from planned state cuts

2009-05-30T00:10:28Z

Local businesses will suffer from the state’s proposed budget cuts because they serve tourists who visit state landmarks in Sacramento, Mayor Kevin Johnson said Friday.

Johnson raised concerns about possible harm to Sacramento businesses if the state moves forward with recent proposals to shutter state parks, including Sutter’s Fort State Historic Park. The state is facing a $24.3 billion budget deficit. For its part, the city is trying to tie up a $50 million deficit for the 2009/2010 deficit.

State parks like Sutter’s Fort and the California Indian Museum & Cultural Center bring visitors to the city of Sacramento, Johnson said. “When these parks are closed, it impacts tourism in our city.”

He added that local businesses, such as sandwich shops that provide lunches for schoolchildren visiting Sutter’s Fort, will be “impacted grossly.”

Local businesses that offer services and supplies to the Capitol will also be harmed by state budget cuts and could go out-of-business, Johnson said.

Residents continue campaign against budget cuts to parks

2009-05-28T03:07:40Z

A group of residents is continuing a campaign against proposed budget cuts to local parks after city staffers this week did not support the group’s proposals.

The group, called Rescue Sacramento Parks, has pitched the City Council several proposals to sustain parks services as the city addresses its projected $50 million deficit for the 2009/2010 fiscal year.

Among many other proposed budget cuts, the city is proposing to slash about $8.3 million and 145 positions from its Department of Parks and Recreation. Rescue Sacramento Parks is worried the proposed cuts to parks will lead to blight and public health and safety problems.

Craig Powell, the group’s chairman, said some of the group’s members will meet Thursday with Parks and Recreation staff “in an effort to find a solution.”

Rescue Sacramento Parks also plans to spread its message to more neighborhood associations, according to Powell. The group’s members participate in neighborhood groups.

Among other suggestions, the group asked City Council to work with the private sector for park maintenance and study whether the city can make more cuts to recreation programs. The group argues that more reductions to recreation programs could lessen the damage to park maintenance services. The City Council last week asked city staffers to analyze the group’s proposals.

In a report to the City Council this week, city staff agreed with residents that privatization of services would save money, but also pointed out drawbacks to the group’s idea.

Moving park maintenance services to the private sector would save an amount of money “estimated to be in excess of 40 percent,” the city staff report notes.

But the cost savings would have downsides, according to the report. “However, the service level would be minimal and response to customers would be reduced,” the report states. “Privatization of basic park maintenance would continue to require city staff to provide contract management and inspection, and more specialized services including irrigation system oversight and emergency repair and oversight of park facilities such as playgrounds, tot lots, all-weather fields, sports courts, picnic and seating areas.”

City staff also wrote that recreation programs should not face cuts on top of the reductions already planned. The department “does not agree that park maintenance should be fully restored at the expense of recreation programs and services; park planning, design and development; grant administration; and other crucial administrative and fiscal services,” the report states.

Rescue Sacramento Parks appreciated the City Council’s decision last week to ask city staff to study the group’s proposals, according to Powell.

But the group is upset that the City Council is not moving on the idea to work with the private sector on park maintenance services. The group is “very disappointed at the Council’s unwillingness to seize the opportunity to save millions of taxpayer dollars while simultaneously restoring basic park maintenance through privatization of park maintenance,” Powell said.

The group had suggested that the city use privatization as a bargaining chip with one of the city’s major unions, Stationary Engineers Local 39. Rescue Sacramento Parks proposed that the city work with the private sector for park maintenance services if Local 39, which includes parks workers, does not make concessions.

Local 39 is currently in negotiations with the city. Joan Bryant, director of public employees for Local 39, was not immediately available to return phone calls Wednesday afternoon.

Kathleen Haley is a staff reporter for The Sacramento Press.

City predicts $30 million deficit for 2010/2011

2009-05-20T06:00:58Z

The Sacramento City Council discussed its 2009/2010 budget Tuesday, but the news of the night was the city’s forecast that it will have a $30 million projected deficit in the 2010/2011 fiscal year.

Sacramento’s proposed budget for the 2009/2010 fiscal year would resolve the city’s current project $50 million deficit, but a new deficit is on the horizon.

Leyne Milstein, the city’s finance director, said the city is balancing its books for the 2009/2010 fiscal year in part by using $8.3 million in one-time funds. She predicts the $8.3 million projected deficit already expected for 2010/2011 will jump to $30 million.

“Gap will grow to $30 million as revenues continue to decline and expenses increase in FY 2010/2011,” according to Milstein’s report.

Milstein’s forecast also pointed out that low sales tax, property tax returns, and unemployment will continue to plague the city over the next five years.

She also noted that there is consumer confidence in Sacramento, but the city is not seeing it result in sales tax returns.

The city council Tuesday approved an “intent motion,” which is a step in its process of approving the budget. Councilmembers are scheduled to vote on the proposed budget June 16.

The city’s general fund for the 2009/2010 fiscal year is $385.9 million.

Council member Sandy Sheedy was the only one on the council who voted against the “intent” step Tuesday. She said she needed more information about the budget before she could approve it.

Mayor Kevin Johnson said he would spend the next two to three weeks learning the details of the budget.

SacPress interviews city finance director

2009-07-11T03:26:03Z

Now that Sacramento’s 2009 / 2010 budget has been approved, what does the city’s financial picture look like for next year?

The Sacramento Press sat down with Leyne Milstein, the city’s finance director, to ask that question. Milstein outlined next year’s projected $30 million deficit and commented on the city’s “structural deficit.”

While Milstein grapples with severe city budget gaps that are tens of millions of dollars, she has a self-described “lighter side” that is evident in her choice of office decorations. An interview with Milstein would be incomplete without mention of her Magic 8 Ball collection.

Sacramento Press: What is the city’s financial outlook for the next year?

Leyne Milstein: For the fiscal year that started on July 1, we adopted a balanced budget in June. And one of the things we really need to be mindful of is this continuing impact of this economic crisis that has gripped the nation. (We need) to continually be mindful of how that’s going to impact our major tax revenues in the general fund -- and specifically property taxes and sales taxes. One of the things we’re now looking at: As the state continues to add furlough days, how is that going to affect...sales taxes?

SP: At a City Council meeting recently you mentioned a projection of a $30 million deficit for 2010/2011. Can you explain that a little bit?

LM: We still think (the $30 million projection) is fairly consistent with our estimate in June. We have some obligations that we need to be mindful of relative to our Sacramento City Employee Retirement System. So we know that costs for that will go up about $8 million.

We know that we are rolling over $8 million in one-time costs (from the 2009/2010 fiscal year). We believe that we’re going to still continue to see a decline in our property taxes.

We have some costs for some of our new facilities coming on-line...Some of our newer labor contracts -- even though we got concessions for 2010 -- include midyear raises. Small, but still 1 to 2 percent, of salary (increase) is...a cost.

SP: How can the public get involved in addressing the city’s financial obstacles?

LM: Folks can contact us, write us, e-mail, call their council members. They can call the budget office. We held community meetings all through March and April. Anybody is always welcome...We were talking about this in October, very publicly.

What we’ve really strived for, and what we tried to do when we did go out to community meetings, is to make sure that people understand the complexity of the budget. And the fact that there’s only discretion on how to spend certain portions of the budget. And that we have to respect, for legal reasons, that some dollars...can’t just be spent on anything, at any time, for any purpose.

SP: Mayor Kevin Johnson often refers to the city’s structural deficit. What is that, and how can it be addressed?

LM: Because of this ongoing decline in revenues -- and they’re continuing to decline -- we are structurally imbalanced between revenues and expenses.

When we built our 08/09 budget, we estimated a $58 million (deficit). We closed everything but $23 million. That was one-time money. So, there was a structural deficit that rolled into 09/10 of $23 million. Now, our 09/10 budget, we closed all but $8.3 million of that. So now we have, structurally, $8.3 (million) moving into 2010/2011, plus the other impacts of continued revenue decline and continued growth in expenses. So, that’s the structural problem between revenues and expenses.

SP: Looking around the office, it appears that you have a sense of fun -- even though the city is facing all of these hardships financially. I see a Gumby (doll), there’s art on the wall, some shiny fake flowers. Can you talk about how you’re balancing that sense of fun with the hard realities of working on the budget?

LM: I think life is a balance of your personal and professional. This is a really difficult job. And I do take my job very seriously. We are stewards for the residents of the city of Sacramento. But on a personal level, if I just took all the serious, and never had that lighter side, it wouldn’t be good and healthy for me.

And so, I have three Magic 8 Balls on my desk. And, you know, sometimes we play “best two-out-of-three.” Just to lighten the load. And that’s what it’s all about -- to have that balance. Honestly, I think I’m a better professional by achieving that balance. And laughing helps receive some of the stress. And so, we try and do that. And the flowers on my desk are actually things that my kids have made me over time that have become collections -- (they) are just to remind me of that other side about why I do my work.

City/County budget crisis: The weekly roundup

2009-06-22T01:20:33Z

City approves budget, 168 possible layoffs

The City Council approved its budget June 16 for the 2009/2010 fiscal year, which means the city no longer has a budget gap of more than $43 million. However, the budget also means that city services face significant cuts, and 168 employees are scheduled to be laid off.

The last day of work for the 168 workers has been changing because the city and unions are still grappling with contract negotiations. The most recent information is that the last day of work for employees scheduled to be laid off is July 3, said acting city spokeswoman Wendy Klock-Johnson Friday.

The city has already distributed 168 pink slips. Still, the number of actual layoffs hinges on union concessions. City unions must make deals with city managers soon: The final deadline for labor agreements is June 30 at midnight, Klock-Johnson said earlier this week.

City parks to be maintained by volunteers, private sector?

Budget cuts and layoffs at the city’s Parks and Recreation department may mean the department could consider contracting with private firms and working with neighborhood groups to maintain city parks, said Jim Combs, director of Parks and Recreation.

A total of 65 workers in the department have received pink slips, according to Parks and Recreation spokesman Hindolo Brima. The department’s planned $8.3 million in cuts includes layoffs.

Combs told the City Council last week that if the department is going to suffer severe budget cuts, then the department may consider working with the private sector, as well as Parks and Recreation staffers, for maintenance services at city parks.

He also said he would be meeting with several neighborhood groups that have indicated they want to enhance maintenance in their local parks.

The situation for Parks and Recreation may soon change if Stationary Engineers Local 39, the union that represents parks workers, makes concessions to city managers.

Joan Bryant, director of public employees for Stationary Engineers Local 39, was not immediately available for comment Friday. The union represents a wide variety of workers in numerous city departments, including code enforcement, parks and recreation, parking enforcemen and the solid waste division.

800 pink slips for county employees

The county’s approval of its proposed 2009/2010 budget last week means that 800 employees may lose their jobs.

In September, the Sacramento County Board of Supervisors will adopt the fiscal year’s final budget.

Budget damage to District Attorney’s office lessened

There’s no doubt that the county’s budget crisis is resulting in dramatic cuts and layoffs. But when it comes to the District Attorney’s office, the budget situation has improved.

The D.A.’s office lowered its budget gap to $1.7 million from $13.1 million in May. The most recent numbers for the D.A.’s office are 18 possible layoffs and 45 unfunded positions, said Shelly Orio, spokeswoman for the D.A.’s office.

The recent figures may change because the county is still negotiating with four unions that represent employees in the D.A.’s office, Orio said. The D.A.’s office is also still waiting for clarification on some of the decisions made by the Board of Supervisors last week.

In May, Sacramento County District Attorney Jan Scully said she would have to cut major units, such as elder abuse and major narcotics, if she had to resolve a $13.1 million deficit.

“The good news is that no prosecution units will be completely eliminated,” Scully told the Board June 10.

See the D.A.’s June 10 presentation for more information on the office’s numbers.

Kathleen Haley is a staff reporter for The Sacramento Press.