Failure of ballot measures means more funding cuts likely

GUSTINE – Officials at City Hall and the Gustine Unified School District are not putting definite numbers to the fallout from last Tuesday’s special election outcome, but fully expect that their budget crises will deepen as a result.

California voters overwhelmingly rejected a series of ballot measures calling for the extension of temporary taxes and other measures to address the state budget crisis. In the aftermath of the failed ballot measures, local agencies anticipate the state will raid their funding to help bridge its own budget deficit.

City Manager Margaret Silveira warned her staff in a citywide meeting Thursday that the latest round of bad budget news could force staffing cutbacks.

“I’m still trying to keep all the jobs, but I have prepared them for the possibility of some cuts down the road,” Silveira said. She is hopeful that the city can avoid lay-offs, but said that cost-cutting alternatives such as furloughs or reduced hours may be considered.

“We’re open to suggestions from our employees on ways to reduce costs,” she added. “They’re the ones out in the field.”

Silveira is not sure how much money the state may take from local government, but anticipates that the amount will be significant.

The state announced before the elections that, if the measures failed, cities risked losing property tax revenues.

“For us, that projection was about $80,000,” Silveira said. “That came out before the election, so I don’t know how much of that was scare tactics, but we are going to see some takes by the state. All bets are off right now because they are going to have to re-do the budget to meet the losses that they have.”

Silveira has already proposed about $200,000 in funding cuts for the coming fiscal year, which starts July 1, but that only covers about half the city’s anticipated deficit – and that’s without considering a new round of cuts from the state.

“The council is going to have to take another look at all those items that are not essential,” Silveira said. “Everything is important, but I think we are going to get down to what is critical.”

Silveira said she hopes to hold another town hall meeting to educate community members on the budget situation and alternatives – which could include future ballot measures asking residents to approve new tax measures to support local government.

“If we get cut too deeply from the state and the citizens want to keep the same level of service, you may see an initiative in the upcoming election,” the city manager said.

She is hopeful that the federal stimulus program might help ease the budget crisis. The city has applied for retention funding for four officers.

“If we got funding for two we would be very happy,” Silveira explained. “That would certainly offset the cuts we have been getting in the police department.”

GUSD also impacted

The Gustine Unified School District also expects further revenue cuts as a result of the failed state ballot measures.

Superintendent Gail McWilliams said Friday she was waiting to hear estimates on the amount. “I’m sure it will impact the district,” she stated.

Federal money may help temper that loss. The district is slated to receive about $480,000 in federal stimulus funds, McWilliams pointed out.

“The thing I’m concerned about is that the stimulus money won’t cover (the anticipated state funding reduction),” she said. “It also means that all the stimulus money will have to go to offset the larger budget cuts from the state. That is money we would like to be able to use for projects such as installing sidewalks out to the new middle school.”

The state is also talking about authorizing schools to go to a shorter year, McWilliams noted, but that change would have to be negotiated with employee groups.

The failure of the ballot measures was widely expected, but will be felt locally.

“I think people are fed up with the pace that government is growing. The state is just out of control right now,” said Mayor Rich Ford. “When they come after our money, there isn’t a lot we can do other than keep cutting our own budget.”