Poor san berdugo Seriously read about the economy!

How much still needs to be cut in San Bernardino? Hard to tell, say officials
Ryan Hagen, Staff Writer
Posted: 09/24/2012 09:16:19 PM PDT

SAN BERNARDINO - With more than 100 layoffs already authorized and more cuts necessary to erase what started as a $45.8 million deficit, no one knows how much the city still needs to cut from its budget.

"It's a process that requires a continual evaluation," said Acting Assistant City Manager Gwendolyn Waters. "Down to the penny, it's impossible to know at any time."

The plan is to cut heavily, then let the dust settle and see how much more still needs to be cut, Waters said.

But that leaves the danger of cutting badly needed jobs or services, then finding out there was still money available, Councilwoman Wendy McCammack said.

"All we've received up to this point is ballpark, but ballpark numbers may mean more people lose their jobs than necessary," she said. "And I'm not willing to go down that road until we know as close to reality as possible."

In other words, McCammack said, she won't support any more cuts until she has more accurate information.

But every day cuts aren't made, the deficit deepens.

Waters said she wasn't sure how much that daily increase was, but it's calculated by taking the remaining deficit divided by the days until the fiscal year ends in June.

The prependency plan the council approved Sept. 5 called for $22.4 million in cuts and another $9.4 million in labor negotiations and other actions - only some of which have begun - which would leave a general fund deficit of $7.1 million.
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But the council modified that plan in a number of ways, including putting off a recommended $3.5 million cut to the Fire Department.

And some actions that were approved haven't been made yet, such as layoffs that were delayed because of a civil-service policy that gives laid-off employees the right to take the job of lower-ranked employees if they meet the job's qualifications.

"For instance, in the Police Department, we issued layoffs (to non-sworn employees), but we had to start at the very highest level to allow them to bump lower employees, then go from there," said Waters, who is also a police captain. "The whole process is going to take months and months."

In August, the council shortened the time employees have to decide whether they will exercise these so-called bumping rights to two days.

On the other hand, 89 employees have voluntarily left since the city announced July 10 that it intended to declare bankruptcy, somewhat lowering payroll costs since the prependency plan was prepared Aug. 23.

The remaining deficit is probably between $15 million and $20 million, estimated Jim Morris, the mayor's son and chief of staff.

"That's a significant chunk of money," Morris said. "The longer that gets delayed, the more that cost is, because we are under the current model spending too much money."

Department heads said the cuts made Sept. 5 were the most severe they could manage without unacceptably hurting service levels.

"So you have to go in and look at the labor costs without reducing the now-minimal level of service that we're providing," Morris said.

McCammack agreed that cutting more than $15 million would be irresponsible, and she said the city should begin looking at revenue increases, including selling assets - worth an estimated $300 million in total - to make up the deficit.

"They're talking peanuts, I'm talking elephants," she said.

Interim City Manager Andrea Travis-Miller and Finance Director Jason Simpson have a clearer idea of what needs to be done, but they don't have the time to break it down.

"They know there's more to be cut, and they're providing the council with snapshots," Waters said. "They absolutely want to be open with the information, but the numbers are so fluid, they don't have time."