Immediate Release

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June 5, 2002

David Vossbrink, (408) 277-3515
Communications Director

Mayor Gonzales Proposes San José Budget

Careful budgeting allows smart investments for neighborhood quality of life, education and child care, affordable housing

San José, CA --- Under Mayor Ron Gonzales' proposed San José budget released today, neighborhoods, children and working families are the big winners with smart investments. San José will continue to dramatically strengthen neighborhoods, support education and increase child care options and develop more affordable housing for working families.

"This year, we're going to do more with less," said Mayor Gonzales. "In these challenging economic times, this balanced budget focuses on our highest priorities. We will protect services for our residents, set aside 'rainy day' reserves, strengthen our economy, and invest in our future to ensure opportunities for the next generation."

Leading the Mayor's proposals are more than $120 million to revitalize neighborhoods through plans proposed by residents and businesses under the San José Strong Neighborhood Initiative. Over the past three years, the San José Redevelopment Agency has increased its commitment to neighborhoods from two percent of its five-year capital plan to more than 33 percent in the next five years.

In addition, the Redevelopment Agency will budget nearly $260 million for affordable housing for the next five years to support the City's new goal of building 1800 homes affordable to families at all income levels every year, which continues San José's leadership for housing solutions in California. Affordable housing now accounts for 30 percent of the Agency budget.

Gonzales also is proposing additional community improvements through the Neighborhood Investment Fund totaling $6 million that supports a wide range of projects for neighborhood safety and appearance, park and recreation enhancements, and cultural support.

"The people of San José will see the results and feel the benefits in their neighborhoods, schools, and streets every day as we keep improving quality of life in our community," he said.

The proposed combined budgets for both the San José City and Redevelopment Agency total approximately $3.5 billion for the coming fiscal year starting July 1. The City Council will consider the Mayor's budget proposals next Tuesday, June 11, following a public hearing at 7:00 p.m., Monday, June 10.

The Mayor's proposed budget continues the City's aggressive capital improvement program of nearly $1.6 billion for parks, libraries, and safety in San José neighborhoods.

Over the next five years, the total capital improvement program for the City and its Redevelopment Agency is $4.2 billion, including $600 million for voter-approved projects for neighborhood parks, branch libraries, and police and fire improvements.

The Mayor noted the serious economic uncertainties that could affect City budgets throughout California this year, including potential state budget decisions that could take away resources from San José in order close the state's $24 billion budget deficit.

"Although we have already made many tough decisions to balance our budget this year by cutting costs, we still face the possibility of substantial impacts on local government after Sacramento completes the state budget," said Gonzales.

"For this reason, we must continue strict fiscal discipline, conservative budgeting, and smart investments to protect vital services, our community and our employees."

Among state budget proposals is a measure that could reduce the Redevelopment Agency's ability to borrow funds by approximately $70 million, or more than half of the City's current five-year allocation for Strong Neighborhood Initiative investments.

Recently San José received a AA+ bond rating from financial credit rating services, which is the highest rating for any city in California with more than 200,000 population. The rating reflects the financial community's continuing confidence in San José's fiscal management.

The City of San José budget may be seen online at www.ci.san-jose.ca.us, and the Mayor's budget message is at www.sjmayor.org.

Among the highlights of the proposed budget recommended by Mayor Gonzales are:

Neighborhoods

  • Delivering better parks, libraries, and public safety improvements on time and on budget, including $440 million over the next 10 years for 20 new or expanded branch libraries and 100 park improvements, and $159 million for new and upgraded facilities for police, fire, and emergency services approved by voters.


  • Expanding the City's successful anti-graffiti campaign to include anti-litter efforts to ensure San José neighborhoods are free of trash

Education

  • Commitment of $10 million in Redevelopment Agency funds to support the expansion of quality childcare in San José neighborhoods.


  • A renewed commitment to address the child care crisis in San José in partnership with schools, businesses, and community organizations.


  • Continuing support for homework centers, teacher homebuyer program, and San José Smart Start centers for early education.

Traffic and Transportation

  • Additional neighborhood street and traffic improvements including sidewalks, traffic signals and medians totaling approximately $3 million.

Housing

  • Annually creating more than 1800 homes affordable to families at all income levels through the use of $260 million of redevelopment agency funds over the next five years.

Public Safety

  • Strengthening the city's commitment to fighting domestic violence through greater coordination and support for prevention, services for victims and public awareness.


  • Expansion of the "San José Prepared!" emergency preparedness program throughout the city to achieve greater community self-sufficiency in the event of disasters.

Recreation and Culture

  • Accelerating the development of Guadalupe River Park through downtown with the reallocation of $7 million to the project.


  • Creation of a senior citizen care advocate to support services to older residents and their families, including transportation, meal programs, housing, and referral services.


  • Development of a skateboard park near the Tamien Station to provide recreation for young people in Guadalupe, Washington, and Willow Glen neighborhoods.
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