By Robert Haugh
This week, City Manager Deanna Santana issued a community letter about the economic impact of COVID-19.
On May 12, the City Council will discuss the current year deficit and projections for FY 2020/21.
Here’s a snapshot of what Santana is projecting:
Santa Clara is feeling the fiscal impact just like local and state governments across the nation. And a lot still remains unknown.
“These estimates are based on the current information that we have available and there remains uncertainty with the economic forecast,” wrote Santana. “Further, since we still do not know the long-lasting impacts of COVID-19 or whether full economic recovery will happen when the State of California begins to re-open based on the Governor’s framework.”
Santana outlined some actions the City has taken already to reduce expenditures:
- Hiring freeze, with limited exceptions
- Stricter expenditure controls
- Decreased approximately 50% of temporary staffing
- Limited travel
- Limited training
- Reduced expenditures for IT
- Reduced expenditures for vehicle/fleet purchases
- Evaluating current contracts and other non-personnel expenditures
Additional cuts for next year that the City may implement, according to Santana, include the following:
- Reduced parks and recreation programming
- Fewer library hours and/or programming
- Longer planning, code enforcement, and public safety response times
- Fewer community events and grants
- Reduced or deferred capital infrastructure maintenance
- Less administrative staff to support quick public service
- Reduced programs
- Potential layoffs