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As most of us look at the warming days of May and are gearing up for Memorial Day, our summer's first holiday weekend, our public sector officials turn their full attention to the annual budget process. Each January, the Governor of California charts a path for California’s annual budget. This year, with an improved economic outlook, the Governor made it clear that fiscal constraint would be part of his budgeting process, setting aside funds for ‘rainy day' reserves. Fast forward to early May, the Governor revised the January budget numbers to take into consideration the tax collection from January through April. The May Revision shows an uptick in tax collections where General Fund Revenues ($125,912 billion) vs. Expenditures ($124,081 billion). The Revised Budget Summary provides an update of revenues, expenditures, and reserve estimates based upon the latest economic forecast and changes in population, caseload, or enrollment estimates. You can see the summary here: California Budget 2017-2018 proposed The State of California is planning for tighter times going forward in future years for many reasons that I won’t go in to detail now. (I will save those items for another E-News report). The May Revise sets the stage for local government to fine tune their budgets in anticipation for revenues flowing from the federal and state to the local government. On Tuesday, I attended the third annual State of the City where Mayor Cynthia Chase, City Manager Martin Bernal and Economic Development Director, Bonnie Lipscomb gave a snapshot presentation of the year ahead - actually, the City has drawn up a two year work plan as part of the budgeting process. The well attended morning event drew a crowd of more than 150 to the Paradox Hotel for an interactive conversation. Here are some of the details laid out by the Mayor, City Manager and Economic Development Director: Quoting directly from the FY 2018 Budget Brief, Martin Bernal stated, “While no doubt we are facing some major challenges, the future is filled with tremendous opportunities. Our charge is to take advantage of the opportunities to meet the needs in our community and further improve our quality of life.” The proposed 2018 Fiscal Year is approximately $272 million. The details can be found here: City of Santa Cruz FY 2018 proposed budget Again, the trending concerns facing Santa Cruz city leadership is addressing the fact that the proposed expenditures ($99.02 million) outpace the revenue ($92.08 million). Clearly, the unanswered questions will linger during the on-going budget sessions this week which will lead to a June City Council vote on the final package. Assumptions abound in how will three ‘revenue boosting' projects can help in the years ahead; including three new hotels, the fiber-optic cable (Cruzio project) and a new basketball arena for our Santa Cruz Warriors. I have to compliment the sincerity of our City leadership to narrow the focus of the DRAFT two year work plan for FY 2017-2018 to three Core areas. 1) Housing: Community Outreach and Education, Housing Policy Updates, potential regional revenue measure (here tax increase or bond) to develop housing 2) Safety and Well Being: Homelessness, Nuisance Crime Reduction, and Inclusive Community 3) Infrastructure: Evaluate Feasibility of Capital, Improvement of Revenue Measure, Asset Management, Downtown Library Project and Fiber Strategy The next few weeks will be important as the City Council moves forward on these policy decisions. If you have a question or concern about the proposed City Budget and the draft two year work plan please reach out to your City Council here: Mayor Cynthia Chase: cchase@cityofsantacruz.com Vice Mayor David Terrazas: dterrazas@cityofsantacruz.com Council Member Sandy Brown: sbrown@cityofsantacruz.com Council Member Chris Krohn: ckrohn@cityofsantacruz.com Council Member Cynthia Mathews: cmathews@cityofsantacruz.com Council Member Richelle Noroyan: rnoroyan@cityofsantacruz.com Council Member Martine Watkins: mwatkins@cityofsantacruz.com
As most of us look at the warming days of May and are gearing up for Memorial Day, our summer's first holiday weekend, our public sector officials turn their full attention to the annual budget process. Each January, the Governor of California charts a path for California’s annual budget. This year, with an improved economic outlook, the Governor made it clear that fiscal constraint would be part of his budgeting process, setting aside funds for ‘rainy day' reserves.
Fast forward to early May, the Governor revised the January budget numbers to take into consideration the tax collection from January through April. The May Revision shows an uptick in tax collections where General Fund Revenues ($125,912 billion) vs. Expenditures ($124,081 billion). The Revised Budget Summary provides an update of revenues, expenditures, and reserve estimates based upon the latest economic forecast and changes in population, caseload, or enrollment estimates. You can see the summary here:
California Budget 2017-2018 proposed
The State of California is planning for tighter times going forward in future years for many reasons that I won’t go in to detail now. (I will save those items for another E-News report). The May Revise sets the stage for local government to fine tune their budgets in anticipation for revenues flowing from the federal and state to the local government.
On Tuesday, I attended the third annual State of the City where Mayor Cynthia Chase, City Manager Martin Bernal and Economic Development Director, Bonnie Lipscomb gave a snapshot presentation of the year ahead - actually, the City has drawn up a two year work plan as part of the budgeting process.
The well attended morning event drew a crowd of more than 150 to the Paradox Hotel for an interactive conversation. Here are some of the details laid out by the Mayor, City Manager and Economic Development Director:
Quoting directly from the FY 2018 Budget Brief, Martin Bernal stated, “While no doubt we are facing some major challenges, the future is filled with tremendous opportunities. Our charge is to take advantage of the opportunities to meet the needs in our community and further improve our quality of life.” The proposed 2018 Fiscal Year is approximately $272 million. The details can be found here:
City of Santa Cruz FY 2018 proposed budget
Again, the trending concerns facing Santa Cruz city leadership is addressing the fact that the proposed expenditures ($99.02 million) outpace the revenue ($92.08 million). Clearly, the unanswered questions will linger during the on-going budget sessions this week which will lead to a June City Council vote on the final package. Assumptions abound in how will three ‘revenue boosting' projects can help in the years ahead; including three new hotels, the fiber-optic cable (Cruzio project) and a new basketball arena for our Santa Cruz Warriors.
I have to compliment the sincerity of our City leadership to narrow the focus of the DRAFT two year work plan for FY 2017-2018 to three Core areas. 1) Housing: Community Outreach and Education, Housing Policy Updates, potential regional revenue measure (here tax increase or bond) to develop housing 2) Safety and Well Being: Homelessness, Nuisance Crime Reduction, and Inclusive Community 3) Infrastructure: Evaluate Feasibility of Capital, Improvement of Revenue Measure, Asset Management, Downtown Library Project and Fiber Strategy
The next few weeks will be important as the City Council moves forward on these policy decisions. If you have a question or concern about the proposed City Budget and the draft two year work plan please reach out to your City Council here: Mayor Cynthia Chase: cchase@cityofsantacruz.com Vice Mayor David Terrazas: dterrazas@cityofsantacruz.com Council Member Sandy Brown: sbrown@cityofsantacruz.com Council Member Chris Krohn: ckrohn@cityofsantacruz.com Council Member Cynthia Mathews: cmathews@cityofsantacruz.com Council Member Richelle Noroyan: rnoroyan@cityofsantacruz.com Council Member Martine Watkins: mwatkins@cityofsantacruz.com