San Jose approves budget focusing on accountability and outcomes

San Jose city leaders have approved Mayor Matt Mahan’s budget message, which emphasizes accountability and measurable outcomes for the coming year. The City Council voted 7-4 to focus the budget on issues like reducing homelessness, improving community safety, and increasing housing availability. The city is facing financial challenges, with a projected shortfall of $45.7 million this year and $52.9 million next year. To address this, Mahan has proposed shifting Measure E funds, originally designated for affordable housing, towards interim solutions for homelessness. He believes this change could reduce the current budget shortfall to a few million dollars and limit impacts on the city’s workforce. Mahan's budget message also includes new policies such as allowing trespassing charges against homeless individuals who refuse shelter multiple times, and linking merit raises for city leaders to performance metrics. More details about the budget and its initiatives will be available next month when the city releases its operating and capital budgets. Homelessness remains a significant concern for residents. The city plans to enhance its shelter system and aims to cut operating costs for shelters by at least 20%. San Jose is also considering new rules for vehicles occupied by persons living in them, in an effort to manage RV encampments in neighborhoods. Another major challenge is the city’s slow progress in increasing housing stock. Although there is a plan for 62,200 new housing units by 2031, only 2,666 permits were issued last year. To speed up construction, Mahan suggests easing some regulatory barriers. Not everyone supports the new budget plan. Some residents and housing advocates oppose diverting funds from affordable housing projects, expressing concerns about rising living costs. On the economic front, the city is looking to boost its economy by hosting major events like the Super Bowl and FIFA World Cup. Mahan envisions creating a sports and entertainment district in downtown San Jose, which could generate significant revenue. Business leaders are optimistic about these plans, noting their potential to enhance the city's economy.