“We’re in grave risk,” warned City Manager Dick Wilson during his mid-year budget update yesterday. He expects that next year’s revenue will not increase, while expenses increase, and the State of California eyes every possibility to close its own budget gap (estimated at one-quarter of the state budget). With all the low hanging fruit already picked, Wilson is recommending cutting retirement benefits for new municipal employees, and asking them to work until they are 60 or to receive fewer benefits if they retire at 55.
One indication of the seriousness of the matter was that even union representatives remained silent during his presentation. Only Mayor Mike Rotkin interrupted, asking whether the city would then be in a position to offer pay increases to its employees. Read more at the Santa Cruz Sentinel.
