San Jose's Fiscal Emergency

Retirement costs have been by far the largest driver of San Jose costs, skyrocketing from $73 million in 2001 to $245 million in 2011. As retirement costs escalated, we slashed services and reduced our workforce by 30 percent. We laid off cops and firefighters, and closed libraries and community centers. We cut total compensation by 10 percent for all employees. Next year, we are facing another huge budget shortfall that could force us to eliminate 400 more jobs.