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San José is one of the largest cities in California. Some people call it Silicon Valley because of the concentration of many technology related companies. San José has quite large companies operating in it. This year’s city budget made a few adjustments. Just like many other cities, San José faced a budget deficit. The city residents are still complaining about a high rate of unemployment which reached its peak during the last fiscal year’s downsizing.

The 2012-2013 had quite some positive things such as opening of four libraries, money allocated for gang prevention, street maintenance as well as the surplus to cover next year’s projected deficit. Such positive things came up because of the tough choices made by the city council which included downsizing. About 400 people lost their jobs. There was also negative effect in the social sector.

Many people had a negative opinion towards the idea of retrenching people in order to alleviate the budget deficit. It creates joblessness, especially with the tough economic times which make it hard to secure jobs. The city should have looked for alternative sources of income, other than leaving people jobless. Increasing taxation is not the best move but I feel people would rather be taxed more than lose their jobs.

The most prominent source of funding is the general funding. The government obtains this from taxes, licenses, permits, transfer and reimbursements. Since this funding makes up the biggest portion of the budget, the government should have cut it to cover next fiscal year’s deficit. After all, the general fund is for improving public services, which already exist. More money should be channeled towards job creation. Providing an enabling environment for business and encouraging more investment should be a government priority.