Mayor Gonzales Calls San Jose
Budget Forecast Bright

San Jose, CA ---- San Jose Mayor Ron Gonzales praised the bright outlook for the city’s budget today and supported continuing the financial policies to ensure long-term fiscal stability for San Jose’s public services.

In addition, Gonzales recommended a midyear appropriation of $1.3 million for the purchase of high priority fire fighting apparatus that was identified by the San Jose’s recent master plan for fire services.

The city is projecting that its general fund will receive $30 million more this year than the original budget had planned because of strong revenues from sales tax and other sources.

"Although our projections show a strong surplus both this year and nearly $10 million for the next fiscal year, we are establishing substantial reserves to ensure we are prepared for any unforeseen needs," said Mayor Gonzales.

In the midyear budget before the San Jose City Council today, $23 million is recommended to be set aside as reserves to meet potential needs in the future. The balance of projected revenue increase will be used for specific one-time purposes, such as completion of already budgeted projects and expansion of fee-supported or grant-funded programs.

"The fiscal policies I have recommended over the past two years have been focused on strengthening our long-term planning and financial discipline so that we can continue to ensure high quality public services to the residents of our community," he said. "Although our local economic indicators remain strong, the national economy is showing signs of slowing down."

Each year at this time the City Council reviews midyear budget forecasts and considers budget modifications. Two years ago Gonzales recommended that midyear modifications be limited to one-time expenditures to meet specific requirements, and to defer ongoing operational issues and proposals for consideration in the annual budget process.

Last year, the mayor also recommended that year-end fund balances be committed to ensure balanced budgets for the upcoming years rather than used for current expenditures. By keeping expenditures in line with revenues, these steps have helped improve the long-term financial outlook for the city.