I’m back.
Before I begin, please let me apologize for the ridiculously long delay between my last posting and this one. I’ve thought about it often, but haven’t had the energy. After a very successful honeymoon (ha!), I found out that my awful fatigue and overall feelings of ickiness were due to the bundle of joy growing in my body. Yup. She’s having a baby! Go figure. It’s completely wanted and we’d even been planning to hop on the Baby Bus asap. Little did we know that asap actually meant….asap. Thankfully, as my first trimester draws to a welcome close, I’m finally able to do more than drag myself home from work, cry over something stupid, and fall asleep.
Although I’ve been pleased with the progress of my life (despite the nausea and weird after taste left by any processed foods), I’ve been very saddened by the economy and its effects on the people around me. When I left my position in Los Angeles, it was with hopeful trepidation. I knew that the position in San Diego would offer me a great opporunity for professional growth (and it already has!), but I worried about the likihood of lay offs on the horizon. They’d been talking about them in Los Angeles when I left, and I arrived in San Diego to similiar discussions.
Earlier this year, most City employees took a cut to pay. It was pretty depressing but I kept reminding myself that 1) I still have an awesome job, 2) the reduction was – supposedly – temporary, and 3) it was far less a reduction than many other governmental employees have been forced to take with mandatory furloughs, etc. Even still, its a strange world to be living in at the moment.
Then, not too long ago, I’m sitting at my desk, working away on my piece of the pie, when an urgent email pops up on my computer:
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FOR IMMEDIATE RELEASE
October 1, 2009
MAYOR JERRY SANDERS
FACT SHEET
SAN DIEGO FACES LARGE DEFICIT NEXT YEAR DUE TO
DECLINING TAX REVENUES, INVESTMENT LOSSES
The ongoing national recession continues to have a significant impact on cities across the nation,
and the city of San Diego is no exception.
Due to declining tax revenues and investment losses on Wall Street, the city of San Diego will
face a projected budget deficit next year of $179 million, Mayor Jerry Sanders announced today.
Over the past 15 months, the city of San Diego has cut $175 million from its budget. Because of
organizational and pension-related reforms, as well as $43 million in employee compensation
cuts, the city was able to protect public services.
Sanders, however, warned today that solving next year’s deficit will require that cuts be made
into services across the city.
“A deficit this size is so significant that we can no longer shield the public from its impacts,”
said Sanders. “As we begin putting together a solution to close our budget gap, we will examine
every responsible alternative to cutting services. But make no mistake about it, there will be cuts
and the public will feel them.”
Added Sanders: “I will work with the City Council and the public throughout this process. But I
can tell you that every City department – including police and fire – will be impacted, and there
will be lay-offs.”
Other cities are also facing budgetary challenges due to the recession. For example:
CITY DEFICIT
San Jose $169 Million
Los Angeles $403 Million
San Francisco $750 Million
San Diego’s deficit is the result of a $67 million decline in tax and other revenues, an additional
$57 million the city will pay from the general fund into the pension system because of
investment losses, and $32 million the city will pay as part of the McGuigan legal settlement,
which remedies pension underfunding by previous administrations.
“Our City Council deserves a lot of credit for the tough decisions they have made over the past
year to address the economic realities we face,” said Sanders, who was joined at the news
conference by Council President Ben Hueso, and councilmembers Tony Young and Kevin
Faulconer, who serve respectively as chair and vice chair of the city’s Budget and Finance
Committee. “As we look to next year, however, these decisions are only going to get tougher.”
Sanders said that the sooner he and the city council can begin addressing the deficit, the less the
city will have to cut from the budget.
“I’ve always believed that when we have tough problems, we need to step up immediately and
begin working on them. These decisions will only get more difficult the longer we wait,” said
Sanders. “It won’t be easy, but I assure you we will get through this difficult period.”
Sanders will now begin working with his financial management team to develop options for
meeting the city’s budgetary challenges.
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Following this Press Release, City departments were contacted by the Mayor’s Office and asked to cut their budgets by 27% over the next 18 months.
27% from a Department where 85-90+% of the annual expenditures goes to employee salaries (which is the case with most City Departments), means lay-offs – real ones and more than a few – not just a the loss of vacant positions (which is how many departments in both San Diego and Los Angeles were able to salvage actual people on the last go around). While I don’t worry personally for my livelihood, this was surely a major blow to many Departments who have already let go many employees in the past 6 months.
The loss of even more staff truly means a necessarily look into the operations of the entity and those services offered to the community. I wouldn’t be surprised if San Diego joins many other cities and closes itself down every other Friday. Many have suggested additional taxes and fees for services that are currently free in San Diego, such as garbage pick up. It will be interesting to see how this City develops over the next year. As an auditor, I can’t help by be curious. And, at times like these, my Department, which seeks out waste and inefficiency, has become more important to the City than ever.
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TELEVISION BREAK: I’m still having difficulty dealing with the loss of one of my favorite television shows, “Terminator: The Sarah Connor Chronicles”. I’m pleased, however, to see that Summer Glau is alive and kicking and will be joining the cast (at least temporarily?) of “Dollhouse”. Why do I so love these shows that always seem to lack the necessarily following for a long run? Oh well.





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