San Jose City Council Budget Study Session - May 12, 2025
San Jose City Council Budget Study Session - May 12, 2025
The San Jose City Council held a budget study session on Monday, May 12, 2025, from 9:30 AM to after 5:00 PM, focusing on the 2025-2026 Proposed Operating Budget and 2025-2027 Proposed Biennial Capital Budget. The session covered Neighborhood Services, Public Safety, Strategic Support, and Appointees, with extensive discussion on homelessness policy, public safety resources, and internal operations. No formal votes were taken; the session was a study session for council questions and staff presentations.
Public Comments & Testimony
- Support for Responsibility to Shelter: Multiple residents, including business owners, neighborhood association leaders, and individuals, urged the council to support the mayor's responsibility to shelter initiative, citing public safety concerns, encampment impacts, and the need for accountability. Speakers shared personal stories of crime, fire, and health hazards near encampments.
- Opposition to Criminalization: Many speakers, including representatives from Sacred Heart Community Service, SOS, and family members of those experiencing homelessness, opposed the responsibility to shelter policy, arguing it criminalizes homelessness, lacks adequate shelter capacity, and ignores root causes such as lack of affordable housing and mental health services. They called for investment in permanent housing and prevention.
- Senior Health & Wellness Grants: Several speakers from organizations like Senior Adults Legal Assistance (SALA) and SourceWise urged the council to restore funding for the $526,000 Older Adults Health and Wellness Grant program, which provides free legal aid, Medicare counseling, and other services at senior centers.
- Library and Other Issues: Foundation representatives requested increased funding for library materials and permanent elimination of late fees. Other speakers supported the mayor's pay-for-performance proposal for council members.
Discussion Items
Neighborhood Services CSA
- Library Services: Staff reported that library hours are preserved, but the acquisitions budget is constrained. A $500,000 general fund offset is proposed. The mayor highlighted a potential partnership with school districts to improve third-grade reading levels.
- Senior Health & Wellness Grants: Staff acknowledged the difficulty of eliminating the $550,000 grant program, which funds 10 organizations serving seniors. They noted that core senior nutrition and social programs remain, and they will work with SourceWise to fill gaps. Council members expressed concern about impacts on isolated seniors.
- OLEV Program (Lived-in Vehicles): Staff reported the program has engaged 20 sites, with voluntary compliance high (12 vehicles towed so far). The MBA proposes expanded enforcement for one-off vehicles and bio-waste dumping. Council members questioned the effectiveness of moving vehicles without adequate shelter options.
- Homelessness Prevention: Councilmember Campos advocated for increased prevention funding, noting that for every one person housed, 1.8 become homeless. Staff confirmed $5.2 million in prevention funding is included, with potential additional HAP dollars. The mayor emphasized the need for a balanced approach of shelter, prevention, and intervention.
- Animal Care: The budget includes $200,000 for contracted spay/neuter services, aiming to increase surgeries from 6,200 to 7,000-8,000 per year. Staff discussed leveraging volunteers and partnerships.
Public Safety CSA
- Fire and Police Budgets: The fire department vacancy rate is 6.94% (50 positions), with a 30-person academy planned. Police vacancies are 125-130, with a 40-44 recruit academy expected. The first responder fee program is set to begin January 2026.
- Responsibility to Shelter Policy: The mayor and staff presented a comprehensive approach: 1) expanded housing outreach (Enhanced Engagement Team), 2) a new Neighborhood Quality of Life Unit (1 sergeant, 6 officers) to enforce violations, and 3) a code of conduct prioritizing abatement for those who refuse shelter. The goal is to intervene in cycles of addiction and mental illness, using the Mission Street Recovery Station (27 beds) for diversion. Council members raised concerns about lack of county partnership, insufficient shelter capacity, and potential criminalization of homelessness. The city attorney noted ongoing discussions with the DA and public defender.
- 911 Call Diversion: The city is seeking to embed a county clinician in the 911 center to improve diversion to 988. The county has expressed openness to a meeting but cited clinician shortages. The PERT program is at risk of defunding, which would end co-response with police.
Strategic Support & Appointees
- Internal Services: The strategic support CSA budget is largely flat, with minor adjustments. The 311 app is being revamped; a homelessness reporting component is expected within 6-8 months.
- Pay for Performance: Mayor Mahan and Vice Mayor Foley proposed an ordinance to tie 5% of council members' base salary to performance metrics based on citywide focus area outcomes. The proposal avoids a costly charter amendment by using existing charter authority. Council members debated the potential for perverse incentives, impact on district representation, and the message to diverse candidates. The item will be heard at the Rules Committee on Wednesday.
Capital Budget & Prioritization
- Staff presented MBA #3, which analyzes 270 existing council referrals. Recommendations include 131 to continue or combine, 19 to drop or defer, and a reduction in council committee meetings from 10 to 6 per year to free up staff capacity. Council members expressed support for efficiency but concerns about oversight.
Key Outcomes
- No formal votes were taken; the session was a study session for council questions and staff presentations.
- Council direction: Staff will refine the responsibility to shelter policy, including performance metrics, and return with more details. The city manager will continue discussions with the county on joint homelessness initiatives and 911 diversion.
- Budget timeline: The council will continue budget discussions on Wednesday, May 14, 2025, with a final vote expected in June 2025.
- Public hearing: A separate public hearing on the budget is scheduled, with town halls in each district.
Meeting Transcript
Good morning, everyone. Welcome on this surprisingly rainy Monday. This was not what I was expecting. Um, we are moving on with our budget study sessions. A lot of ground to cover today. We're all gonna be spending a lot of time together. Thank you for being here. Uh this is the San Jose City Council budget study session for the morning of May 12th. Tony, would you please call the role? Campos, Salais, Cohen. Here, Ortiz, present. Duan present. Kendallas. Here. Casey. Oli. Mayhan. Here. All present. Okay, great. Thank you very much. We, as is typically our practice, will go through a lot of content today, and because it's a council study session focused on our discussion and dialogue and questions for staff and hearing from staff. We will save all public comment until the end of the day. So let's kick off with neighborhood services, which includes lived in vehicles. Good morning, Mayor and members of the council. I'm Jill Bourne, City Librarian and Director of the Library Department. And I am here today with my colleagues in the neighborhood services city area. Eric Sullivan, Director of the Housing Department, John Cicerelli, Director of Parks, Recreation and Neighborhood Services, Matt Lesh, Director of Public Works, Rachel Roberts, Deputy Director of Planning, Building and Code Enforcement, and Angel Rios, our deputy city manager. Oh, we have a special guest not on the slide, John Risto from the Department of Housing. Yes. Transportation. Oh, housing, transportation. I'm all over the place. Okay, next slide. You totally mess it me up. Okay, like this impressive group of teams before you, the neighborhood services CSA is wide ranging in the core services and programs we offer to all San Joseans. What possibly sets the CSA apart is the way in which our work engages directly with people and therefore in all areas of the human condition, from the most heartbreaking to the most joyful and uplifting. Our programs that you see here. Also adding one-time funding to offset funding for collections in our capital budget that are limited. And leverages funding held by the San Jose Public Library Foundation to offset costs for college and career pathways workforce development team. Housing is continuing previously funded outreach and supportive services to our unhouse residents, eviction program, and program management staffing. Animal care continues contracted veterinary care, and there are also enhancements to code enforcement. Specifically, the manager's budget addendum number four describes a focus on parking enforcement enhancements related to expired registrations, capacity and expectations in the oversized and lived-in vehicle enforcement or olive program. A pilot related to compliance for street sweeping and more that can be found in the MBA. Sorry. As for as a CSA, our focus is on the highest and best services for our community through stewardship of public assets such as parks, trails, gateway corridors, and library resources, and to continue essential services in veterinary care, implementation of recommendations from code enforcement's operational assessment, and improvements to the city's shelter system. In summary, the proposed budget seeks to ensure that core services are maintained in the many areas and programs of PRNS, in preserving library operating hours, in maintaining veterinary services, while implementing planned program improvements to code and animal care. And continuing to deepen the impacts in areas of addressing encampments, the city's shelter system, and alignment with the county. That concludes our formal report. The entire team is here to welcome your questions.
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