Newest articles on The Sacramento Press tagged as "20092010 budget"

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.

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.”

World War II veteran urges county to fund veteran's center

2009-05-18T00:20:52Z

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 end of their lives.

“Most of us are, like me, 85-years-old,” Canfield said. “And death is taking its toll.”

Canfield also said that if the county drops funding for the VFW post, it sends the message that the county “does not appreciate the effort” of the young men and women serving in Afghanistan, Iraq and in other locations throughout the world.

He said he didn’t know the solution to the county’s situation, but he urged the county to consider the VFW post and “seriously consider what can be done.”

The veteran’s code requires that the county provide a meeting-place for veterans, Canfield noted.

The audience at Thursday’s county budget workshop -- estimated to be 250 people seated inside the Board of Supervisors’ chambers -- applauded Canfield’s remarks.

Canfield told The Sacramento Press that he served as a paratrooper with 82nd Airborne Division in World War II and has lived in Sacramento for more than 50 years.

The county’s budget is tentatively scheduled to be released June 5. The Board of Supervisors is scheduled to evaluate and adopt the budget June 15, June 17 and June 18.

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.

District Attorney: budget crisis means justice won't be served

2009-05-14T03:02:32Z

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 department would need to make 109 layoffs and remove entire units to fill the $13.1 million hole, she said.

Units that would be entirely removed include major narcotics, community prosecution, special investigation, statutory rape, elder abuse and child abduction.

Scully said other units that would not be eliminated but have already been cut or will be cut include homicides, gangs, domestic violence, adult sexual assault, victim witness advocates, juvenile hall, and special assault and child abuse.

“It’s not a pretty picture,” Scully said.

She explained that the D.A.’s child abduction unit prosecutes cases in which a non-custodial parent violates the law by taking a child from the custodial parent. The proposed budget cuts mean that those particular child abduction cases “likely would not be prosecuted,” Scully said.

She told the county supervisors that serious or violent cases under the major narcotics unit would still be prosecuted by the D.A.’s office. However, she noted that cases involving major narcotics would be folded into a “general felony” category. This means that a major narcotics case “now becomes one case in a caseload of a smorgasbord of crimes,” she said.

Supervisor Roberta MacGlashan asked Scully if she has reason to believe the D.A.’s office would receive federal stimulus funding.

Scully said the office has applied for $10 million in federal stimulus dollars. However, she explained outside the meeting that the she didn’t think it was likely the office would be awarded the entire amount for which it applied. She said the stimulus funds were “too uncertain.”

Two more workshops on the county’s budget crisis will be held this week at the Board of Supervisor’s chambers at 700 H St. Workshops on both Thursday, May 14, and Friday, May 15, will begin at 9:30 a.m.

Here’s a breakdown from Scully on the 109 layoffs:
46 attorneys

18 investigators
6 victim advocates
12 investigative staff
3 criminalists
24 support staffers

Homelessness: County aims to lessen blow of proposed cuts

2009-05-13T06:33:28Z

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.

“We don’t want to take a big step backwards,” Wagstaff told the Sacramento City Council at its Tuesday meeting.

After making his public comments, Wagstaff explained that the new Homeless Prevention and Rapid Re-Housing Program (HPRP), funded by the federal stimulus package, might help the county’s situation if the Board of Supervisors makes cuts to shelters.

The federal dollars will be used for homeless people to rent housing and for prevention of homelessness.

While HPRP funds are not intended for expenses with shelters, the new federal stimulus funding may free up money in county pots that could be used to address the possible cuts to county shelters, Wagstaff said.

The county is proposing to slash 907 positions. This means that 640 people could be laid off, because the remaining positions are vacant.

County Spokesman Zeke Holst said Tuesday that the numbers of layoffs for the county could change because some county offices may soon announce new numbers.

The Board of Supervisors is holding workshops on the county’s budget crisis Wednesday, May 13, and Thursday, May 14.

Also on May 13, the board is scheduled to address the county’s HPRP application.

Sacramento’s city and county governments will receive about $4.8 million in HPRP funds. The city and county expect to each receive about $2.4 million.

Both local governments can obtain their federal funds Oct. 1 if the federal Housing and Urban Development department signs off on their applications.

Cindy Cavanaugh, assistant director for SHRA, said last month that the city and county are likely to receive the federal funds. She noted then that the city will continue to prepare its program after the application is turned in to HUD on May 18.

At its Tuesday meeting, the City Council unanimously approved the city’s application for the HPRP funding.

Council member Ray Tretheway pointed out that the city and county face good news about the stimulus money and bad news about the possible county cuts. “On the one hand, we’re doing this new intervention in housing,” he said. But on the other hand, the area is facing a “potential collapse” in its support system for homelessness.

Layoffs: Employee reflects on her work for the county

2009-05-09T04:14:17Z

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, 30, says the department’s most necessary employees work with clients to assist them with benefits such as food stamps, Medi-Cal and other programs for low-income people.

She says she will miss several things about her job.

“Working for the county is a great place to be,” she says. “It’s like working in a family. And being a public servant — that feels good. I’ll miss that, definitely.”

But now, she says, she’s “at peace” with the department’s plan to lay her off.

“I feel they made the right decision,” she says, noting that the department needs to keep the employees who work with clients.

Knowles’s responsibilities include communicating with media outlets and with staff at the department. She also chairs a fundraiser for non-profit organizations, prepares an annual report, responds to public records requests and plans events. She has worked at the county as a staffer for two years, and as an intern for one year.

Knowles currently holds down a second job, working a few hours per week for a cosmetics company. She plans to continue her part-time job and look for a new full-time career position. “I’m just going to do whatever I can to get back into another career,” she says.

Knowles graduated with a degree in communications from California State University, Sacramento, in 2007.

Lucinda Serynek, a county communications and media officer, is Knowles’s supervisor. She says that DHA is considering cuts to 104 positions, 50 of which are filled. Unfortunately, one of those positions “is my communications and media officer, Stephanie,” Serynek says.

Knowles’s layoff has not yet been finalized by the Board of Supervisors, but it’s highly likely, Serynek says. There’s a chance Knowles’s job may be saved, but it’s “very, very slim,” Serynek says.

Knowles says Serynek has been her mentor.

Asked if she would fight to keep her job, Knowles responded that she believes in and values what she does in her position for the county, but that “I don’t think I have an option to fight for my job.”

Pictured above: Lucinda Serynek (left) and Stephanie Knowles (right).

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.

City Budget: City in talks with firefighters

2009-04-29T05:20:30Z

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 firefighting jobs: firefighters, captains or the operators who drive the fire trucks.

But if the union makes concessions, Vina said, the city will save $5 million and won’t need to make the cuts.

Meanwhile, Chris Harvey, spokesman for the firefighters’ union, said the union disagrees with the city’s assessment that it will need to lay off 50 firefighters. Harvey called the figure of 50 layoffs “arbitrary.” He said that if 10 people from the department retire, the city wouldn’t have to lay off 50 people.

In addition to the discussion of whether the firefighters will give up scheduled pay increases, Harvey said the union is also discussing other issues with the city.

It does not necessarily mean that if Vina is happy, then the “union is prepared to give back the raises,” Harvey said.

But Harvey also said the union is happy that the attitude from both parties in the negotiations has been positive.

The city and Local 522 have not always had the best relationship, Harvey noted. If nothing else, the tone of the current negotiations is much better than past negotiations, he said.

Sacramento’s deficit is about $50 million. The city will release its proposed 2009/2010 budget Friday. It must approve a final budget by June 30.

Vina estimated that the city still needs to cut about 300 positions in city government in order to address its budget problems.

He said he hopes to complete negotiations with all city unions by the end of May.

If management convinces all eight of the city’s labor unions to make concessions, the city may only need to cut 150 positions, Vina said.
He pointed out that the city currently has a volunteer separation program in which employees accept buyouts.

The employee buyouts are part of the city’s strategy to further reduce the number of layoffs it may make, according to Vina.

So, Vina said, the number may be even lower than 150.

The city is asking the non-emergency services unions to give up pay increases, as well as for employees to take one furlough day per month, according to Vina.

City Manager Ray Kerridge wrote in an April 3 letter to employees that layoff notifications will take place in early June.

Joan Bryant, director of public employees for the Stationary Engineers, which includes a local union chapter for Sacramento workers, said the union has been talking with city management about the magnitude of the city’s budget deficit and management’s expectations for workers.

She said the union needs to gather more information to make sure it will act in the best interests of its members and the city.

Asked if the union’s members might be willing to give up pay increases and start a once-per-month furlough, Bryant said the union will look at all of those options.

She said the union was waiting to receive information from the city. Once the union gets the information it needs, it will have a better idea of what it will decide, she added.

At this point, one union has made concessions to the city. The police department’s union, the Sacramento Police Officers Association, chose to give up its July salary increases, Vina said. As a result, the city will not cut police officers, he noted.