Santa Ana, Calif., was able to ratify agreements with its police and service employee unions this week, halving its projected $30 million budget deficit for next year and quelling talk of a potential bankruptcy, according to published reports.
The deal is a mix of temporary and permanent givebacks that only buys the City Council an additional 18 months to find longer-term solutions, Councilman Sal Tinajero told the Voice of Orange County.
The combined savings of the agreements total $10.7 million for the next fiscal year and $4.5 million this year, according reports.
As part of the agreement, pension contributions made by Santa Ana police officers will increase to 7.9% from 2.42%, but the increases will come from raises officers were expected to receive this year and next.
The Santa Ana government did not have a lot of bargaining power, because the contracts don’t actually expire until 2013 or 2014.
