Santa Clara County expects that there will be layoffs in July to
balance the looming $160 million budget deficit. Sales tax and
other revenue have fallen short of the cost of providing
services.
Santa Clara County expects that there will be layoffs in July to balance the looming $160 million budget deficit. Sales tax and other revenue have fallen short of the cost of providing services. This shortfall is directly related to the local economic downturn, reductions in specific outside state and federal revenue sources and structural problems stemming from rising costs and falling revenues. While revenues have decreased, the County, like all employers, has been impacted by the rising costs of health care and other costs driven by efforts to attract skilled employees during periods of economic boom.
On Monday, county departments and agencies were required to submit proposed reduction plans, describing how they would meet their share of the deficit reduction strategy. The County Executive’s Office is analyzing agency proposals to determine if they are feasible and accurately reflect budget targets. Throughout the month of March, the administration will meet with agencies and departments to discuss the budget reduction proposals. At the same time, preliminary review of the proposals will take place at Board policy committee meetings.
In April, the administration will prepare the FY 2004 County Executive’s Recommended Budget, which will be submitted to the Board of Supervisors on May 5. Budget workshops will be held on May 12, 13 and 14 to provide an opport Board and its staff will analyze the information in preparation for hearings scheduld June 16, 17 and 18. The FY 2004 Final Budget is scheduled to be adopted on June 20.
These proposed reductions do not include the local share of the $35 billion state of California budget deficit. Until the state takes specific action on how that deficit will be addressed, the full impact to the county is unknown. Due to the size of the County deficit, layoffs will be inevitable. Layoffs are planned to take effect July 1.
County policies and labor contracts provide for four weeks notice to affected employees, which means official notifications will take place in May and June.
