San Jose tests out ways to cut benefits

September 24, 2013

This story from the New York Times about our neighbors to the north is pretty interesting.

Like many places in California, San Jose is struggling financially.

“San Jose now spends one-fifth of its $1.1 billion general fund on pensions and retiree health care, and the amount keeps rising. To free up the money, services have been cut, libraries and community centers closed, the number of city workers trimmed, salaries reduced, and new facilities left unused for lack of staff. From potholes to home burglaries, the city’s problems are growing.

The situation in San Jose is not anywhere near as dire as it is in Detroit or two other California cities, Stockton and San Bernardino, already in bankruptcy. But government officials and municipal bankruptcy experts across the country are watching San Jose closely because of a plan to reduce benefits — drafted by Mayor Chuck Reed, a Democrat, and passed by 70 percent of voters in a referendum last year.”

The plan is being contested in court, of course. It will certainly be interesting to see how this plays out.

 

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One Response to San Jose tests out ways to cut benefits

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