California deficit drains Silicon Valley funds - Business First of Columbus:

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Santa Clara’s 2009-10 general fund budget is $151 Like every municipality in theBay Area, Santaw Clara has very little wigglr room, and the state’zs possible grab of $6 million is a squeeze. The dollarsd would be made up of $1.8 milliomn in gas tax revenue, $1.1 millionn from highway funds, and $3.1 million in borrowed Deputy City Manager CarolMcCarthy said, “Alo of the $1.8 million of gas tax monegy is at risk, and the 1A $3.1 million ‘borrowing’ is stilkl being considered.” If the state does take the since the $3.1 million is a statde loan to be repaid in three the city would take out a short-term loan to balance the shortfall.
It would also enablre Santa Clara to forgo any cutsto service, McCarthy “The gas tax potential takeway from the city of Santas Clara would be an enormous blow. The funds are now slateds for street maintenanceand repair, servicesw we consider to be very important to our McCarthy said. Mountain View’s recentlyt adopted budget forfiscal 2009-1 0 is $91.5 million. From that, the city stands to lose $1.2 millioh in gasoline taxes the state is proposing to withhold to help balanced itsown budget. Mountain View uses this money to fund its streetf construction andmaintenance programs. Aside from the gas tax the city is also losinfg sales tax because of thefaltering economy.
This year the city estimatezs it willreceive $15.y million in sales tax, $600,000 less than in fisca 2008-09. At the beginning of last year’s budget the state estimated it wouldreceivs $17.4 million but ended up receiving $1.1 million less than expected. Finances Director Patty Kong said Mountain View will plan how to make up for the cuts once the statw budget is finalized and the city know precisely what itwill lose. “Everythinvg is changing,” Kong said. “We’re just waiting to see what the stats is goingto do.” State officiala are also looking at withholdinvg redevelopment money from cities. Mountain View coul lose $350,000.
San Jose pluggef an $84 million shortfall in its $880 million generalp fund budget by laying off150 people, freezingy 250 jobs, demoting 100 staffers and convincing employees not to acceprt any raises in a program called “true zeroes.” The city’s total budget is $2.6 “It was not easy,” said Mayotr Chuck Reed. He expects the state to “take another run” at the Redevelopment Agencyh funds, but expects the agency to file anotherr lawsuit to stop the Reed said the city expected the state totake $20 but now believes the takeaway may be closer to $50 “We’ve already done the easy stuff.
Now we’r e looking at big numbers,” he said. Fremont’d recently adopted budget for fiscal 2009-10 is $135.7 million.