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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 i
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
John Canfield is a World War II veteran who values Sacramento County’s contributions toward a veteran’s center on Stockton Boulevard. But the Veterans of Foreign Wars (VFW) Post 67, of which Canfield is a member, faces difficult economic times. The county, too, is in a financial crisis and faces a projected $180 million deficit. One of its numerous proposed cuts would halt $16, 476 in funding for VFW Post 67 during the 2009/2010 fiscal year. Canfield, 85, told the Sacramento County Board of Supervisors Thursday that the VFW post’s revenues have declined “drastically.” Many of the post’s members served in World War II and the Korean War, Canfield said, and these veterans are reaching the
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 Jo
Elder abuse. Major narcotics. Community prosecution. These are just a few of the key units in the county district attorney’s office that would be eliminated if the office has to make $13.1 million more in cuts to help balance the county’s budget. Sacramento County District Attorney Jan Scully gave the Board of Supervisors a dire outlook Wednesday of how the public would suffer from proposed cuts to the D.A.’s office. The county’s most recent figure for its budget deficit is $180 million, said Kerri Aiello, a county public information officer. “Rest assured, with these kind of cuts, if I have to close a $13.1 million gap, justice is not going to be served in this community,” Scully said
The county department that addresses homelessness hopes federal stimulus dollars will help lessen the blow of proposed cuts to its shelter programs, a county official said Tuesday. Bruce Wagstaff, director of Sacramento County’s Department of Human Assistance, said the department is working with the Sacramento Housing and Redevelopment Agency (SHRA) on plans to alleviate the damage that would be caused if the Board of Supervisors approves proposed cuts. Sacramento County is proposing to slash funding for three county shelters, which means about 300 beds for homeless people would be cut. The county is grappling with a $187 million deficit, while the city faces a $50 million budget gap. “
Stephanie Knowles knows the odds are against her. Knowles expects to be laid off from her Sacramento County job in July, but she’s not angry with the county for cutting her position. Knowles, who works for the Department of Human Assistance (DHA), says her job as a communications and media officer is not as critical as other positions in the department. Sacramento County is struggling with a $187 million deficit. The Board of Supervisors will be discussing its budget crisis in workshops on May 13 and May 14. Media outlets have recently reported that the county plans to slash 907 positions, which means that 640 people would be laid off because the remaining positions are vacant. Knowles,
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 propo
A city official said Tuesday he was optimistic about current efforts to save Sacramento $5 million and 50 jobs through negotiations with the local firefighters’ union. Gus Vina, a Sacramento assistant city manager, said the city is currently in talks with the Sacramento Area Firefighters Local 522. The city government is trying to convince the firefighters’ union to give up pay increases scheduled for July. Vina said the city and the firefighters’ union are engaged in “very productive” discussions. If the firefighters’ union does not give up its pay increases, Vina said the city will need to lay off 50 department employees. The positions could come from any of the following types of fi