San Jose City Council Budget Public Hearing – June 8, 2026

The San Jose City Council held a final public hearing on the proposed 2026-2027 operating and capital budgets, and the 2026-2027 proposed fees and charges. The meeting opened with Mayor Matt Mahan providing context: the city faces a $50.3 million structural shortfall for the current year and a projected $28 million structural shortfall next year, even after balancing this year's budget. The city also has a deferred maintenance and infrastructure backlog of $2.6 billion. The mayor noted that $5 million in ongoing savings had been identified in homelessness services and beautification, with an additional $20 million in ongoing savings in homelessness programs. He also highlighted that the June budget message allocates $1 million for immigration services ($500,000 immediately deployable, $500,000 reserved for a ramp-up in enforcement), and that Measure A (transient occupancy tax update) appeared to have passed, easing budget pressures. The hearing was limited to public comment; no council deliberation or vote occurred. Over 125 speaker cards were submitted, and each speaker was allotted one minute. The council will incorporate feedback into final deliberations and a vote scheduled for the following day.

Public Comments & Testimony

• City Peace Project supporters: Numerous youth, staff, and executive director Danny Sanchez spoke in strong support of the mayor's budget and requested continued funding for the City Peace Project, which provides mentorship and violence prevention in schools. Speakers shared personal stories of transformation, describing how the program helped them avoid violence, improve grades, and graduate.
• Immigrant services advocates: Multiple speakers from Amigos de Guadalupe, community organizations, and rapid response network volunteers urged the council to allocate the full $1 million for immigration services immediately, rather than holding $500,000 in reserve. They argued that ICE enforcement is already happening daily, with detentions straining resources, and that waiting for a crisis would be harmful. Some speakers noted that Santa Clara County faces three times more detentions than neighboring counties.
• California Room supporters: Many speakers, including historians, librarians, researchers, and community members, urged the council to maintain full public access to the California Room at the Dr. Martin Luther King, Jr. Library. They supported a memo by Councilmembers Kamei, Tordillos, and Cohen to provide one-time funding for continued open access, warning that an appointment-only model would reduce annual users from 5,000 to under 250.
• Children and Youth Services Master Plan supporters: Representatives from Grail Family Services and child care providers asked the council to maintain $1 million in funding for the Mayfair, Poco Way, and Seven Trees/Santee pilot projects, which connect families with resources for child care, health, and economic mobility.
• Older adult services advocates: Speakers from senior service organizations and individuals supported maintaining $300,000 for the Older Adult Health and Wellness Grant Program, which funds legal assistance, healthcare navigation, and social connection for seniors.
• Fire Station 32 proponents: Speakers from District 7 urged the council to fully open Fire Station 32, noting that Station 26 is the 15th busiest in the U.S. and that Station 32 would become the busiest once operational. They argued that voter-approved Measure T funds were already invested and that the station would improve response times in underserved areas.
• Business tax study opponents: Several business representatives, including from the Silicon Valley Leadership Group, San Jose Silicon Valley Chamber of Commerce, and small business owners, opposed funding a study (MBA 7) for a potential business tax increase, citing high existing costs and the risk of driving businesses away.
• Critics of homeless outreach reductions: Some speakers expressed concern about proposed cuts to homeless outreach and the creation of an Enhanced Engagement Program (EEP) working with police, arguing it would criminalize homelessness rather than provide housing and services.
• General budget supporters: Many residents expressed support for the mayor's budget message, praising progress on homelessness, public safety, blight reduction, and economic development, and urged the council to approve the budget as presented.

Key Outcomes

• No formal votes or decisions were made during the public hearing. The council will deliberate and vote on the final budget on June 9, 2026.
• The council heard extensive public testimony on multiple priority areas: immigration services, youth programs, historic preservation (California Room), senior services, homelessness prevention, public safety (fire stations), business taxes, and park noise issues (pickleball courts at Cataldi Park).
• The mayor and city clerk managed the hearing with a one-minute per speaker limit due to high turnout, and asked the audience to refrain from applause or disruption to expedite proceedings.