The city of Santa Ana is so low on cash that it could end up without enough to meet all of its payroll obligations by the end of November, said Joaquin Avalos, president of the Santa Ana chapter of Service Employees International.
Francisco Gutierrez, the city’s finance director, told union officials that if this scenario comes to pass, the city will have to decide which employees will be sent home without pay, Avalos said.
Whether Santa Ana will be able to pay its employees hinges on how quickly the city and its labor groups – specifically service employees, police and fire unions – can agree on large, immediate savings, Avalos said. Read More.
This is not a good sign at all. While City Hall only recently disclosed the severe budget shortfall it is facing, I find it difficult to see how any concessions from labor groups can make up this large shortfall in cash flow in such a short period of time.