Task force projects higher San Diego deficit than mayor’s estimate

City News Service

A report from a citizens task force today projected the city’s deficit for the fiscal year starting July 1 at more than double the mayor’s estimate of $56.7 million.

An analysis by the Citizen’s Fiscal Sustainability Task Force added $29.3 million in liability for retired employee healthcare costs and $44.4 million for financing projects to catch up on deferred maintenance projects.

That brings the projected shortfall for the 2012 fiscal year to $130.4 million.

The city should adopt a plan for fully funding the deferred maintenance backlog as part of its budget plan, the task force members said.

The mayor’s deficit projection and the healthcare liability add up to “structural deficit” of $86 million, meaning that programs now in place will cost the same amount in coming years unless changes are made, according to the report.

“The task force believes this structural deficit condition must be rectified,” the authors wrote.

“Action is required now. The city leadership must address the city’s fiscal problems with a far greater sense of urgency than has been previously exhibited.”

Since voters rejected a half-cent sales tax increase in November, spending reductions will have to make up most of the solution, according to the task force.

Among the task force recommendations:

• more than halving the annual allowance of retiree health care from $8,800 a year per employee to $4,000 annually;

• adopt private sector-style benefit plans to lower city costs;

• reduce the salaries of employees making over $100,000 annually by 4 percent, and those making between $31,000 and $100,000 by 2 percent;

• and consider outsourcing the entire library and trash collection systems.

The task force is chaired by Vincent Mudd, the owner of San Diego Office Interiors and chairman of the San Diego Regional Chamber of Commerce. Among the members are Richard Vortmanm, the president and CEO of National Steel and Shipbuilding, and former City Councilwoman Barbara Warden.

Related posts:

  1. Opinion: What if the La Jolla Library closed three days a week?
  2. Opinion: Local input a key to reforming the city
  3. Opinion: Happy New Year, neighbors
  4. Opinion: Make your charitable giving count
  5. OPINION: La Jolla resident says 30-foot building limit under attack

Short URL: http://www.lajollalight.com/?p=36919

Posted by Staff on Mar 9, 2011. Filed under Opinion. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

La Jolla Community Calendar

Facebook

Bottom Buttons 1

Bottom Buttons 2

Bottom Buttons 3

Bottom Buttons 4

Bottom Buttons 5

Bottom Buttons 6

RSS North Coastal News

  • Congregation Beth Am Labor Day Picnic September 2, 2014
    Congregation Beth Am held a festive Labor Day Picnic Sept. 1. This year is the 31st anniversary of this synagogue that started in a tire store in Solana Beach. […]
  • Suspects attempt to rob Solana Beach bank ATM September 2, 2014
    An attempt to break into an ATM at a Solana Beach bank branch early Sept. 2 using a cutting torch ended with the cash machine in flames and two suspects fleeing empty-handed. The suspects set off the ATM's alarm during the failed heist shortly after 2:30 a.m. in the 600 block of Lomas Santa Fe Drive near Glencrest Drive, according to sheriff's Lt. […]
  • First phase of Earl Warren Middle School reconstruction begins in Solana Beach September 2, 2014
    As kids kicked back this summer, San Dieguito Union High School District kicked off the first phase of its complete reconstruction of Earl Warren Middle School. The $41 million project is made possible by the passage of Proposition AA. […]