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San Jose council adopts mayor's March budget message after bruising debate on shelter policy
Summary
The San Jose City Council voted 7-4 on March 18 to adopt a revised version of Mayor Matt Mahan's March budget message, laying out priorities to close a projected near-term shortfall and to expand interim housing while directing further study of enforcement and performance-pay proposals after intense public comment.
SAN JOSE, Calif. — The San Jose City Council on March 18 adopted a revised version of Mayor Matt Mahan's March budget message that calls for shifting resources to expand interim housing and for new performance and accountability measures for city leaders.
"Achieving an overall balanced budget across the next 2 years will require a multi year strategy," Mayor Matt Mahan said as he opened the discussion, describing projections that show a roughly $46 million shortfall in fiscal 2025'26 and an additional ongoing shortfall of about $53 million in 2026'27.
The mayor's memo urged reallocating some Measure E funds toward operating shelters and interim housing, and it proposed clearer expectations that people accept low-barrier housing when it is available. Council members amended the mayor's text in a motion introduced by Vice Mayor Pam Foley; the amended message passed 7-4, with Councilmembers Cohen, Ortiz, Candelas and Campos voting no.
Why it matters: San Jose faces slowing sales- and property-tax growth after a postpandemic boom and must choose how to fund core services, homelessness responses and programs that spur revenue. The council action sets policy direction ahead of detailed budget…
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