Measure E reallocation would prioritize interim sheltering and supportive services; council strategy would preserve 10% for prevention

San Jose budget staff told the City Council at a May 7 study session that the proposed FY25–26 budget would reallocate most Measure E revenue toward interim sheltering and supportive services, while preserving a 10 percent set‑aside for homelessness prevention.

Housing staff and the budget office described a policy recommendation to increase the share of Measure E devoted to sheltering and services from a 15 percent baseline to a sliding scale up to 90 percent (the proposal staff presented sets the ongoing allocation at 90 percent for sheltering/supportive services). Officials emphasized the change reflects council direction to prioritize immediate shelter operations and outreach.

Eric Soloman, Housing Director, said staff project Measure E revenues of about $55 million in FY25–26 and about $60 million in FY26–27. Under the administration’s recommended allocation, $39.2 million of Measure E would be repurposed in FY25–26 (rising to $42.8 million the following year) to support interim housing…