San Jose City Council Meeting: Budget Message, SB 79, and Child Care Report (March 17, 2026)
San Jose City Council Meeting: Budget Message, SB 79, and Child Care Report (March 17, 2026)
The San Jose City Council met on March 17, 2026, in a lengthy afternoon and evening session to address several major items, including a status report on child care policy, implementation of Senate Bill 79 (industrial ordinance and historic resources), and the approval of the Mayor's March Budget Message for fiscal year 2026-2027. The meeting began with ceremonial items and a unanimous consent calendar. A significant portion was dedicated to public comment on the budget, with 186 speakers registered. The council voted 8-3 to approve the Mayor's budget message as amended, and also approved the SB 79 industrial ordinance and a substitute motion on historic resources.
Consent Calendar
- All consent calendar items were approved unanimously without discussion or pull.
Public Comments & Testimony
- On Child Care (Item 3.4): No public comment was taken; speakers were redirected to the budget item (3.3).
- On Land Use (Items 10.2 and 10.3): Speakers included Brent Triana (neighborhood association), Tronic Crichton (VTA senior planner), Ben Leach (Preservation Action Council), Jimmy Kogura (Japantown representative), Brent Van Brocklin (VTA TOD project manager), Mary Ang (Opportunities for Change), and Mike Sodergren (Preservation Action Council). They expressed support for protecting historic resources and asked the council to consider mixed-use development on VTA sites while maintaining employment hubs.
- On the Budget Message (Item 3.3): Over 150 speakers addressed the council, many representing community organizations, neighborhood associations, and advocacy groups. Key themes included support for public safety, homelessness reduction, housing production, youth investment, child care, senior services, immigrant defense funding, and prevention programs. Multiple speakers supported the mayor's budget priorities, while others called for increased funding for the Children and Youth Services Master Plan, the Family Friends and Neighbors (FFN) program, and the rapid response network. The public comment period lasted from approximately 10:15 AM to late afternoon, with each speaker limited to 45 seconds.
Discussion Items
- Child Care Policy Opportunities Status Report (Item 3.4): Staff presented an overview of city efforts, including a brief survey of other jurisdictions (San Francisco, Santa Cruz, Oakland, Seattle, etc.) and current San Jose programs (Recreation Preschool, FFN network, boost program, co-location in affordable housing). Councilmember Campos moved to accept the report, noting the importance of child care for workforce participation. Councilmember Casey expressed concern about "mission creep" and regional funding, while Councilmembers Kamei, Tordillos, Ortiz, and Duane supported the report and emphasized child care's role in economic development and family stability. The motion passed unanimously.
- SB 79 Implementation (Items 10.2 and 10.3): Staff presented jointly on the amendment to Title 20 (Industrial Employment Hub Exclusion) and analysis of SB 79/AB 130 impacts on historic resources. For Item 10.2, the council voted to designate five industrial employment hubs (North San Jose, Berryessa, Lundy-Milpitas, East Gish-Mayberry, Monterey Business Corridor, Old Edenvale) to exempt qualifying industrial lands from SB 79's residential streamlining. The ordinance will take effect April 23, 2026, before SB 79's July 1 implementation. For Item 10.3, staff discussed risks to historic resources under the combined laws. Councilmember Mulcahy proposed a delayed effectuation ordinance for historic districts and conservation areas. Councilmember Tordillos offered a substitute motion (with Cohen, Campos, Kameh) to adopt staff recommendations (narrower definition of demolition) and direct a workload analysis for a future historic resources survey. The substitute motion passed 10-1, with Mulcahy voting no.
- FY 2026-2027 Mayor's March Budget Message (Item 3.3): Mayor Mahan presented the budget message, outlining a $56 million shortfall for the coming year and a projected additional $28 million deficit. Priorities include public safety, homelessness reduction (2,000 shelter placements, 1,000 new since early 2025, unsheltered homelessness down over 20%), housing production, economic revitalization, and fiscal discipline. He acknowledged 63 unique pieces of direction from council memos and issued a reconciliation memo incorporating several items. Councilmembers Condelas, Ortiz, Campos, Cohen, Kamei, Tordillos, Duane, and Mulcahy debated amendments. Vice Mayor Foley made a substitute motion to approve the mayor's budget message and reconciliation memo, which was seconded by Councilmember Kamei. Friendly amendments from Councilmember Condelas (including analysis of opioid settlement funds for the Children and Youth Master Plan and exploring code enforcement modernization) and Councilmember Cohen (exploring opioid settlement funds for the Children and Youth Master Plan with paramedicine precedence) were accepted. The motion passed 8-3, with Councilmembers Duan, Condelas, and Campos voting no.
Key Outcomes
- Consent Calendar: Unanimously approved.
- Child Care Report: Accepted unanimously; staff directed to continue work.
- SB 79 Industrial Ordinance (10.2): Passed unanimously; will be submitted to HCD and take effect April 23, 2026.
- Historic Resources and SB 79 (10.3): Substitute motion passed 10-1, adopting staff recommendations (narrower demolition definition for historic resources) and directing a workload analysis for a future historic resources survey. A delayed effectuation ordinance was not approved.
- Budget Message (3.3): Approved 8-3, including the mayor's original message and reconciliation memo. The city manager will prepare the proposed budget for May study sessions, with a final vote in June.
Meeting Transcript
All right, good afternoon, everyone. I would like to call to order this meeting of the San Jose City Council for the afternoon of March 17th. Tony, would you please call the roll? Come? Campos. Present. Tordillos. Here. Owen. Ortiz. Present. Mulcakey. Here. Duan. Here. Kendallas. Here. Casey. Foley. Mayhem. Here. You have a quorum. Great. Thank you. Now, if you're able, please stand and join us in the Pledge of Allegiance. Pledge allegiance to the flag. Thank you. Today's invocation will be provided by David Mulvahill, Chief of Operations of the Nouveau Hospitality Group and downtown Stakeholder. And Councilmember Tordillos will tell us more. Thank you, Mayor. Good afternoon, everyone, and happy St. Patrick's Day. Today we're especially lucky to have someone with true Irish roots joining us to deliver our invocation. David Mulvahill moved to the Bay Area from Ireland in 2001 and now proudly calls downtown San Jose home. Originally from the countryside of Tillamore. Sorry if I'm butchering the pronunciation there. Ireland, David often says that while San Jose is a big city, the warmth and hospitality of our downtown businesses and residents give it that same small town feeling he grew up with. Many of you know David from O'Flaherty's Irish pub, where he began bartending over 15 years ago before becoming a partner in the business nine years ago. Since then he has played a major role in shaping our downtown food and nightlife scene as a founder and partner of Nouveau Hospitality. Through ventures like Five Points, Dr. Funk, Hello Good Burger, Playback Coffee in the Press Room. David has helped to make downtown San Jose a vibrant and welcoming place for both our residents and our visitors. Thank you. So that was my first introduction to the Bay Area. And um this is the story of quite a few Irish emigrants that we don't hear about. So you know, I started out on a construction site, not knowing what I was doing, bounced around from job to job. I was an undocumented worker for 10 years. So sometimes it takes a lot longer to get to the American dream than you think, but I feel like it builds your character. I might as well give you a job. So I started bartending and really found that um I loved uh people and working with people, uh, meeting new people, and I just felt a great sense of relief that um I'd actually found purpose in life.
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