Valley cities, counties see no jobs improvement

When the economy began to tank about four years ago, private jobs were first to go.

The public sector is catching up.

Government jobs, once a bastion of stability and middle-class strength, bucked history and suddenly became hard to keep. Over the past three years, cities and counties in the Northern San Joaquin Valley have downsized more than 18 percent compared with a 10 percent to 12 percent loss in the private sector.

The dip in government jobs among Stanislaus, San Joaquin and Merced counties and their 22 cities — not counting schools or special districts — represents nearly 3,500 positions. That's more jobs than Jamestown has people (3,100), or twice the combined population of Grayson and Westley.

It's more startling when viewed incrementally. At this time in 2009, the 25 agencies had shed less than 7 percent of their jobs; last year, the number grew to 12 percent and then to 18 percent this year.

"The situation (for public employees) is really dire and hasn't improved in the slightest, even though the private sector may have seen some improvement," said Max Neiman with the Institute of Governmental Studies at the University of California at Berkeley.

"It's a very demoralizing and sad state of affairs," he added.

And it affects everyone.

Because of government downsizing, park lawns grow long or turn brown, or both. Fewer officers and firefighters take longer to respond to calls for help. Rest-rooms and libraries aren't open as much and get dirtier, and trees might not get pruned, or graffiti erased.

"We have to let some things go," said Greg Nyhoff, Modesto's city manager. "We have to make decisions and tell people, 'We can't do that.' "

Delayed reaction

Across the United States, up to 45 percent of recent private-sector gains are offset by losses in government jobs, Neiman said. The effect is probably more poignant here in the valley, he said.

"Whereas the private sector had been shedding jobs at a nasty clip almost immediately" after the recession began, Neiman said, "it was somewhat delayed in the public sector. We're now seeing the unfortunate buildup effect of budget cuts."

Unemployment is stubborn in the north valley, hitting 18.7 percent in Merced County and 17.5 percent each in Stanislaus and San Joaquin. The figures represent 112,500 people out of work.

A Bee review of budget and personnel data from the three counties and 22 cities shows they are spending about 10 percent less now, on average, than three years ago. That's the main reason for unprecedented downsizing.

Cuts are blamed on plunging property tax revenue, although sales and use taxes have rebounded to some degree.

Some agencies were hit much harder than the average. Gustine and Los Banos, for example, slashed their general fund spending by more than 30 percent and 36 percent, respectively. Stockton has been pushed to the brink of bankruptcy and earlier this year threatened to eliminate 253 positions, or 34 percent of its work force, to cure a $37 million deficit.

All told, the 25 agencies will spend $195 million less this year than they did in 2008. Much of the savings come from laying people off, or not filling positions when people retire or move on.

Stanislaus County has lost more positions by far — more than 1,000 — than any agency in the region, amounting to more than 23 percent of its work force.

In relative terms, little Hughson took the biggest hit, downsizing 36 percent, from 25 to 16 workers. Most came in February, not long after Bryan Whitemyer was hired to manage the city.