Citizens Budget Task Force Produces Report

Trying to solve the city's $11 million annual deficit isn't easy. Just ask the members of the Citizens Budget Task Force.

They have put in countless hours since the summer, often sitting in meetings with staff that last three or four hours at a time. Their report, presented on Tuesday to the Milpitas City Council by the task force's chairman, Joseph Weinstein, will lay the foundation for proposals that could be adopted by the city.

Here's a snapshot of some of those recommendations:

• Freeze on city employee pay increases. City employees, with their salaries and benefits, consume nearly 83 percent of general fund expenditures. This proposal could put a freeze on salary increases, supplemental compensation and new hires. 
• Reducing the total cost to the city for employee pension and benefits. The task force looked at ways to change pensions and benefits, such as requiring the dependents of employees to contribute more toward healthcare. Some benefits, such as educational benefits for employees to take classes, could be terminated. In addition, last-minute approval of bargaining agreements with employee unions could be nixed by making documents available to the public at least 20 days before council approval.
• Bargaining. Employment compensation negotiations would be organized into only two categories: public safety and non-public safety to achieve a level playing field between bargaining units. 
• Outsourcing. Staff has been asked to identify which departments or tasks might be outsourced and then reviewed every three years.
• Cuts in recreational programs. All recreation programs, excluding senior programs, are looking at possible 100 percent cost recovery fees. Programs such as preschool and Tidal Waves Swimming are under scrutiny because they do not service residents on a need-basis, nor are all recipients living in Milpitas. The amount the Tidal Waves program spends per kid is about $850.  The afterschool program, After the Bell, could raise participation fees. 
• Billing the county for unreimbursed services. The city of Milpitas could bill Santa Clara County for unreimbursed services provided to the county jail—such as emergency response by city police and fire—or even services by public works employees. 
• New Tax. As an alternative to making cuts in essential services and programs a 1 percent utility tax with a defined sunset could be considered that is estimated to yield about $3 million.

Since the summer, Weinstein, along with Angula Nigam, Alan David, Deepka Lalwani, Dan Manassau and Ami Shaw, have worked to come up with ways to alleviate the general fund deficit over a three-year period. They have no plans so far to meet in the future.

Mayor Livengood and the Council were pleasantly surprised with the thoroughness and scope of their report and that Mayor-elect Jose Esteves was also in attendance to hear the comprehensive presentation.

The difficult task of cutting public services comes when there is virtually no support among the taxpayers for any type of increases in taxes or fees. Weinstein noted in his presentation that he learned less than $1000 of his taxes each year actually go to the city. And this was a great deal for the amount of city services residents receive.

Input from residents was obtained from public meetings, comments sent to the city, three public forums, door-to door queries of citizens, conversations with city staff and residents, the Santa Clara County Grand Jury Report, San Jose Budget Task Force Report, and a just published policy brief from the UC Berkeley Labor Center.

The Milpitas City Council received this extensive report at the Nov. 16, 2010 meeting and is expected to take up discussion of the recommendations early next year at upcoming budget workshops, and at the 2011-12 fiscal year budget hearings next May, where more action could be considered.