More Housing Won't Pay the Bills

By Ed Rast

Did you know that San Jose has over 53% of Santa Clara County’s population but only 40% of its jobs?

Don’t believe me? Have a look at these charts. Pay particular attention to the charts for population and jobs. You'll find that San Jose's percentage of Santa Clara County's population rises from 52.9% to 53.8% between 1990 and 2010 (projected). You'll also see that San Jose accounts for only 35.8% to 39.6% of jobs countywide over that same span.

Why are the ratio of jobs to employed residents and the jobs/housing balance important for having an adequate city budget?

From a City of San Jose document on population, jobs, and housing:

“Historically, San José has had a shortage of jobs compared to the number of employed residents living in the City, commonly referred to as a jobs/housing imbalance. A jobs/housing imbalance, especially when there is a relative deficit of jobs, can be problematic because it results in longer commutes as City residents travel to other locales for employment. This same imbalance can result in financial hardships for a city due to the costs associated with providing services to residential land uses in relation to revenue generated.”

Table 4.13-1 in this document provides an overview of the historic and projected number of households, jobs, employed residents, and population in San José. The data in Table 4.13-1 indicates that the City was having success in correcting the historic imbalance, but recent jobs data shows that we slipped back again, making our budget deficit worse, thus requiring a reduction in staff and city services

In the Mercury News from Wednesday, October 24 2007, Mayor Chuck Reed said, “Eliminating San Jose's status as Silicon Valley's bedroom and better balancing the growth of new jobs with new housing is the key to getting out of this structural budget deficit." I would tend to agree.

So, how are we doing at achieving the Mayor’s goal? Let’s have a look at the San Jose General Plan Update: Projections of Jobs, Population and Households For the City of San Jose (Table 3, Page 9). This update predicts San Jose will account for 44.2% of countywide jobs by 2040, but if you crunch the numbers here, you’ll find that ABAG has allocated San Jose slightly over half of the County’s projected job growth. That's a pretty rosy prediction given the current business environment in our city.

Homes, unless they are very expensive, do not generate enough city tax revenue to pay for the services they require to maintain, thus generating a budget deficit. This is unlike businesses, which generate more revenue that their services cost based on California public finance policy.

Population growth without the required jobs to pay for city services and infrastructure has an adverse affect on the general fund budget and San Jose’s ability to provide adequate city staff, services, and infrastructure to residents and businesses

San Jose receives back from the state about $11-12 cents of every property and sales tax dollar. Property taxes are about 21% and sales taxes range between 24-29% of the general fund budget, with imposed taxes from other cities, licenses, user, or service fees — mostly paid by businesses — plus revenue from state and federal governments making up the rest of general fund revenues.

Jobs-rich cities like Palo Alto, Santa Clara, Milpitas, Campbell and other Santa Clara County cities that have more jobs than employed residents have the excess business tax revenue to pay for services for their residents. Almost a decade of budget deficits and the highest cost of doing business in the county has discouraged business and job growth in San Jose. See my previous posts, “Cost of Doing Business” and "Just the Taxes, Ma'am" for additional information about jobs and taxes.

To ensure that the City’s fiscal condition is stable, predictable, and adequate in the long term to serve the proposed development without detrimental impact to services for the rest of the city.

San Jose should strongly consider setting: 1. jobs/housing triggers as proposed in Coyote Valley or other residential growth controls; and 2. a jobs-per-employed-resident target of 125 jobs rather than current 100, which has never been met.

A Pledge for Public Safety

By Bobby Lopez

For decades, San Jose has had a top-notch police department and avoided the controversy over policing that is a routine occurrence in major American cities. But recently, San Jose has seen a seemingly endless string of negative stories regarding its police department. What’s different here is that the source of the controversy is not a bad cop on the beat or a rogue group of officers. Rather, the problem stems directly from weak administrative and political leadership at City Hall.

For example, the number of arrests made downtown, which some believe is excessive, is a result of administrative policy. The feuds between city leaders and the Task Force on Public Intoxication is a turf battle. The fiasco over the hiring of a new Independent Police Auditor is a political fight between the Mayor and Council.

These stories don’t accurately reflect the outstanding work of our cops on the street. Our officers are highly educated, well-trained, and reflect the communities we serve. We are respected by the vast majority of San Jose’s citizens, as is demonstrated in numerous City surveys, for the tremendous job we do with limited resources.

But negative stories caused by poor leadership have hurt officer morale and distracted us from our real goal: keeping San Jose’s streets and neighborhoods safe. So, in an effort to return our focus to what’s really important to the people of San Jose, I’ve asked our city leaders to pledge the following:

1. Return San Jose to the rank of “Safest Big City in America” within the next five years. We once enjoyed and bragged about this achievement. This goal can be met not just with more cops on the streets but also fully-funded libraries, more homework centers, and cleaner parks. All of these contribute to public safety by keeping our kids off the streets and out of gangs, thereby reducing violent crime, which was the major culprit in our recent drop from the top spot on the FBI list of Safest Big Cities.

2. Support our officers by refraining from knee-jerk reactions to activist complaints, particularly from those who lack expertise. If the experts from the Consortium on Police Leadership in Equity, who were hired by the City Council to review downtown arrests, are hesitant to pass judgment on one set of arrest data without further research to back it up, our elected officials should refrain from doing so as well. Yet we’ve consistently heard prejudicial statements about downtown arrests from the Mayor and City Council when vocal critics of our police force are in front of them.

3. Involve more neighborhood leaders on committees and task forces regarding public safety in addition to the regular cast of activists, who have many complaints when it comes to our police department. San Jose neighborhood leaders know best what the entire city wants from their police force, and should be heard as well.

In December, Mayor Reed was quoted in the Mercury News saying, “We like the bragging rights of being one of the safest big cities, and we're committed to getting back to No. 1.” Now, on behalf of the dedicated men and women of the San Jose Police Department, I’ve challenged the Mayor and City Council to re-commit to putting us back on top by signing this pledge.

Bobby Lopez is President of the San Jose Police Officers' Association.

EDITOR’S UPDATE:

As of this posting, Mayor Reed and all but two Councilmembers have committed to this pledge. One Councilmember refuses to sign pledges as a matter of principle, and another has yet to respond.

About Time

EDITOR'S NOTE:

Regular readers of this blog will remember Monday’s post from SJPOA President Bobby Lopez defending Lieutenant Jose Salcido from attacks on his character as he ponders a campaign for Santa Clara County Sheriff. Mr. Lopez pointed to Lt. Salcido’s lifetime of work keeping our streets and neighborhoods safe and his strong ties to the community as reasons why he deserved a promotion.

Well, it looks like Mayor Reed was paying attention... But seriously, we'll repeat what Mr. Lopez wrote earlier: Lt. Salcido is a good man and deserves recognition for his years of public service. Let’s hope the Mayor and others listen to him.

UPDATE:

The Mayor's office finally got around to posting the official press release on the web. You can read it here for yourself. (Click on the arrow in the upper right corner to go to full-screen mode.)