San Jose Mayor Chuck Reed today delivered an optimistic State of the City address despite the current economic downturn, stressing the need for clean-tech growth, downtown improvements, help for the homeless and a focus on schools and the arts.
Flanked by fellow council members, Reed addressed a sold-out crowd of hundreds at the McEnery Convention Center this morning.
He praised the city's successes over the past year, including an increase of the number of police officers, with 15 officers added in 2007 and another 25 officers ready for Police Academy this year.
Reed also cited a drop in the number of homicides, a 20 percent decrease in gang violence in 2008, and improvements to the fire department.
Though the mayor remained positive, he acknowledged the current downturn, comparing it to previous recessions and financial crises.
"So, even though there's a lot of bad news in the economy, we've been through this before," Reed said.
Reed attributed the city's anticipated $60 million budget shortfall next year to the city's spending on new facilities such as libraries and fire stations, a steady increase in union salaries outpacing revenue, and the poor national economy.
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"The combination of these three factors -- new facilities, increased personnel costs and a bad economy -- will deepen our long-term structural budget deficit and make it impossible to close the budget shortfall next year without making hard decisions," Reed said.
Taking on a somber tone, Reed said layoffs are almost certain.
"In the face of such challenges, we must all work together to identify our core services, determine our top priorities and consider alternatives to layoffs," he said.
Reed said the city is open to suggestions on how to avoid layoffs, even suggesting a $20,000 reward as an example for an employee or team who saves the city $1 million.
Reed said the city must address its financial problems by taking immediate action to create jobs. He suggested the city concentrate on expanding the presence of clean-tech companies in San Jose, encourage and assist development in the city's downtown, and help address the problems of the city's downtrodden citizens and suffering art community.
Reed wrapped up his speech by mentioning President-elect Barack Obama.
"Today, we join together with great hope on the brink of an historic day, as we are about to inaugurate a president whose life inspires us to believe in what opportunity and hard work can achieve," Reed said.
Reed received a standing ovation and closed by saying, "The best days of Silicon Valley and the best days of San Jose are ahead of us. Together we will make it happen."
