When City Manager Debra Figone delivers her proposed budget on May 2, more than 600 workers will likely be on the chopping block.
The San Jose Mercury News is reporting that Figone sent out a notice to city employees that jobs in almost every department are likely to be cut in order to help the city balance the budget. Current estimates put the city’s deficit for the next fiscal year at $115 million.
While much has been made of getting employees across the board to accept a 10 percent cut in total compensation—only four of 11 unions have agreed to this, to date—the remaining deficit will still be close to $80 million if everyone were to accept the cuts.
Mayor Chuck Reed told the Merc that the city is not making enough progress in facing the budget crisis and he could try to have initiatives focusing on pensions and other costs placed on the ballot in November. In past remarks, Reed has likened the city’s escalating pension costs to a cancer.
Of the jobs likely to be eliminated in Figone’s budget, 220 employees who were hired on a one-year contract with temporarily funds would be let go.