San Jose’s projected deficit zooms past $59 million; layoffs seem certain

According to San Jose Mercury News: “The imploding economy has widened the projected hole in San Jose’s budget next year to more than $59 million, city officials said Thursday, making layoffs virtually certain and burying Mayor Chuck Reed’s hopes for eliminating chronic deficits in his first term.Though city voters this month maintained two existing phone taxes at reduced rates — one of which was set to expire next year — and some employee groups have agreed to take lower raises, City Manager Debra Figone said “everything else has worsened.”

“At this point in time, I can’t see how we can avoid layoffs,” Figone said. City union leaders had no immediate response.”