VOC – Union Official Says Santa Ana may not make payroll in November.

The Voice of Orange County is reporting that the City of Santa Ana is on the verge of not being able to make payroll by the end of November.

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.

  3 comments for “VOC – Union Official Says Santa Ana may not make payroll in November.

  1. Thomas Anthony Gordon
    October 13, 2011 at 12:08 pm

    Good thing that the Santa Ana City Council got all new Apple Ipads prior to running out of money to pay for police, fire, parks and libraries!

    In fact, The Santa Ana City Council authorized the spending of more $ 8000 for new Apple Ipads from January 1,2011 to June 30, 2011 alone. They also authorized $ 4864 in flash drives, $ 1300 for a subscription to Western City Magazine, $10,000 in office furniture repairs, $ 7900 in computer accessories from Dell Computers, $ 603 for an office chair, $ 884 for another office chair, $ 1541 for balloons, $ 25,000 to recuit a new city manager & city attorney which were never hired, $ 2916 for a conference table and 12 conference chairs, $ 5374 for a Mac Pro computer, $ 2011 for promotional pens, $ 12,949 for a desktop computer, $ 2272 for staff t-shirts and jackets, $ 5458 for a scanner, $ 2014 for a notebook from Dell Computers, $ 1007 for another notebook from Dell Computers and all this in addition to tens of thousands of other dollars spent on travel and lodging for Councilmembers.

    Soon the Santa Ana City Council will tell you it needs more tax dollars for a Public Safety Assesment (TAX).

    The Santa Ana City Council needs to stop blowing our hard earned tax dollars on Ipads, overpriced office chairs and airfare and hotel rooms for Councilmembers before they ask for more……

  2. October 13, 2011 at 8:36 pm

    Those prices for PCs and scanners are very higgh. Are they noted as some sort of specialized device that can scan very large documents or a real muscle machine PC/server? Or is that a total for multiple devices? Chairs seem very pricey…..

  3. Marcus Wilson
    October 16, 2011 at 9:58 am

    In my opinion Santa Ana should do two things. First declare bankruptcy and let the court sort it out. Next (and parallel to that) all city officials should resign or be fired. Hire some young bucks to do their jobs at half the price. There are cume laude graduates (Summa and Magna) coming out of area colleges and universities every year and they wouldn’t do a worse job. In fact, for Santa Ana it would finally be a breath of fresh air.

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