Oversight committee flags slow Measure T spending, urges prioritizing public-safety projects

The Measure T Citizens’ Oversight Committee presented its annual report to the San Jose City Council on March 4, saying audited spending lagged staff plans and urging the council to prioritize public-safety projects funded by the bond measure.

Gary Cunningham, chair of the oversight committee, and committee members told the council the program has issued $440.4 million of the $650 million authorized under Measure T and that 79% of issued proceeds had been spent to date. The committee said delays and deferrals increase the risk of cost overruns and may threaten projects that the measure’s voters intended to fund.

The committee highlighted $70 million in realized and expected public-safety project cost overruns that already drew on an $85 million public-safety reserve, pointing to a limited remaining contingency for future shortfalls. The oversight body recommended the council (1) prioritize remaining public-safety projects so the council can make timely spending corrections or project scope decisions, and (2) fill four vacant oversight-committee seats.

Sal Kumar, deputy director of public works, presented the audit summary and said staff will return to council with detailed project-status updates on March 25. Chen Yu Sang, deputy director of debt and treasury, told council members the city has not received any IRS requests tied to tax-exempt bond spending, but staff is documenting project progress and spending carefully because certain tranche spend-downs had not reached the IRS 85% spent-within-three-years benchmark on schedule.

Council voted unanimously to accept the oversight committee report. Members encouraged filling the vacant seats and asked staff to return with more concrete project timelines and prioritized recommendations at the March 25 follow-up.

What happens next: staff will present detailed project status updates and timelines on March 25 and pursue filling the oversight-committee vacancies.