In both his March Budget Message and June Budget Message, Mayor Reed recommended a number of measures to improve public safety services, such as:
Mayor Reed also recommended setting aside some of the limited funds available for modest pay increases to help retain talented and experienced city employees (contingent on the outcome of labor negotiations). This includes $16.4 million over the next two years for police officer compensation, which would cover the City’s latest offer to police officers: a 5% wage increase over the next two years and a 4% one-time retention bonus in 2015.
Furthermore, the budget proposal recommended holding back some funds to protect against remaining uncertainties in this year’s budget (including $20 million that is contingent on retirement reforms being challenged in court) and to help address the projected deficit for FY 2014-15.
The City Council approved all of these recommendations in the final budget adopted in June 2013.
Despite this improved outlook, San José still faces a number of long-term fiscal challenges. Numerous lawsuits have been filed to block all of the city’s retirement reforms, jeopardizing $68 million in General Fund savings that could be used to restore services. In addition, the City currently has a $900 million backlog of deferred maintenance and infrastructure projects, and needs tens-of-millions of dollars more in annual funding to restore core services to January 2011 levels (which was the goal set in the Fiscal Reform Plan).
As a result, Mayor Reed has reiterated his call to continue implementing the rest of the Fiscal Reform Plan.
Mayor Reed's FY 2013-14 Budget Documents
Other relevant budget documents can be found on the City Manager's Budget Office website.