0711 | Friday, March 16, 2007

Almaden Resident

Public enemy No. 1 is the budget deficit, according to new mayor

By Eli Segall

Flanked on the podium by San Jose City Council members, Mayor Chuck Reed declared the city's budget deficit "public enemy No. 1--an enemy that will steal our hopes and kill our dreams of becoming a great city if we ignore it."

He reeled off several budget-related problems, including a $16 million budget shortfall in the upcoming year and $400 million backlog in maintenance projects. Standing before a packed audience in San Jose McEnery Convention Center, Reed delivered his first State of the City address on March 7.

His assessment: " San Jose is a good city with great people, but it's not yet a great city."

After listening to the speech, residents from across San Jose agreed that improving the city's financial situation is important. One person cited Reed's predecessor, Ron Gonzales, as the cause of the problems.

"Mayor Gonzales got us into a lot of hot water with his backroom deals," said San Jose resident Janice Diac. "I'm happy Reed will be honest and try to bring down the deficit."

Gonzales is currently under indictment over an alleged secret deal with Norcal trash haulers.

In addition to budget shortfalls and maintenance backlogs, Reed also outlined solutions, including the creation of more jobs in San Jose, improving the business permitting process and installing energy-efficient green technology.

"Not only can we reduce operating costs," said Reed, referring to green technologies, "we also can showcase our local clean and green solar technologies, educate our kids and community, end our addiction to oil and help reduce global warming."

One of his goals--prevent job outsourcing with a federally subsidized bioscience manufacturing plant--struck home with San Jose resident Julie Winter.

"The job market keeps going away because all of our customer service jobs are going out of the country," Winter said. "We need to reinvent our Silicon Valley."

Reed, a former District 4 city councilman who was elected mayor in November, also cited a sagging retail industry and declared he will bring it back to life.

"We are losing 20 percent of our sales tax revenues to other cities," Reed told the crowd. "We have to implement our retail strategy and make it easier for major retailers to get through our approval process so our residents can buy what they want in San Jose. We have to do better, and we will."

The event, which drew close to 2,000 business leaders, government officials, neighborhood leaders and residents, also included awarding medals to community leaders from each of the 10 council districts for their volunteer work.

Reed's 22-minute speech, despite the bad news, left many in the crowd optimistic for the future.

"I thought it was right on," said Councilwoman Nancy Pyle. "It's all very doable."