San Jose City Council Meeting - June 9, 2026: Budget Adoption and Policy Discussions

The San Jose City Council met on June 9, 2026, to adopt the June Budget Message for FY 2026-2027, approve the operating and capital budgets and fee schedule, and address several other items including ceremonial proclamations, a memorial, and discussions on wastewater security, FIFA World Cup preparations, and card room regulations. The meeting began at approximately 9:45 AM and included public comment on multiple items. The council unanimously approved the consent calendar, the wastewater security construction award, the budget message with the mayor's reconciliation memo, and the operating/capital budgets after amendments. Key votes were all unanimous.

Ceremonial Items and Memorial

• The meeting opened with the Pledge of Allegiance and an invocation by Leslie Osborne, co-founder of Bay FC and U.S. women's national team legend. She highlighted the economic impact of women's sports and San Jose's role as a World Cup host city.
• Proclamations were presented: America's 250th Independence Day (July 4, 2026), Philippines Independence Day (June 12), and Portuguese Heritage Month (June).
• The council adjourned the meeting in memory of Rod Diridon Sr., a former Santa Clara County supervisor and transportation visionary. His wife Gloria and son Rod Jr. spoke, emphasizing his role in building the region's "civic backbone."

Consent Calendar

• The consent calendar was approved unanimously with no items pulled. One speaker commented on an absence item (not on consent) and another on a housing subsidy reporting item.

Public Comments & Testimony

• On Consent Calendar: Lillian Koenig asked about the summary of "public subsidy reporting" in consent item 2.8, requesting policy analysis for senior affordability.
• On Mayor's Budget Message: Ten speakers addressed the budget, the majority urging full $1 million funding for immigration legal defense services. Speakers included representatives from Somos Mayfair, Guiamigos de Guadalupe, CSO San Jose, and residents. They thanked councilmembers Campos, Ortiz, Candelas, Casey, and the mayor for supporting the full allocation. One speaker expressed concern about a proposed EEP (Enhanced Enforcement Program) team for unhoused people, arguing it would criminalize homelessness. Another supported the business tax modernization study.
• On Item 3.4 (Card Room Regulation): Sean from Casino Matrix spoke in favor of the memo directing continued discussions on Title 16, arguing the division of gaming is duplicative of state regulation. He stated the division's enforcement is limited to regulatory matters like chip color and felt type, not criminal investigation.

Discussion Items

• Item 6.1 – Actions Related to 9885 Regional Wastewater Facilities Security: Councilmember Candelas summarized that the item upgrades security perimeter cameras and card readers at the regional wastewater facility. The TPAC committee recommended approval. The motion passed unanimously.
• Item 3.1 – Report of the City Manager: City Manager Jennifer McGuire reported on FIFA World Cup preparations starting June 11, 2026. She highlighted the SJ 26 strategic plan, collaborations with multiple departments and partners, and citywide events including watch parties in every district. She thanked staff and council for their support.
• Item 3.2 – Mayor's June Budget Message for FY 2026-2027: Mayor Mahan presented the budget, which closes a $50.3 million structural shortfall and addresses a projected $26.8 million shortfall next year. The budget preserves core services, library hours, and park maintenance. It includes a net reduction of 85 roles (mostly vacant). The mayor's reconciliation memo incorporated 67 of 78 council budget documents. Key elements: $1 million for immigration services (allocated through the county procurement process), funding for the California Room (one-year bridge), a study session on cost of living drivers (instead of a new focus area), a $50,000 grant to the San Jose Police Foundation, and direction to apply for a SAFER grant. Councilmembers debated affordability, business tax modernization, and the California Room. Councilmember Ortiz advocated for a new focus area on cost of living; the mayor recommended an analysis first. The vice mayor moved the mayor's memo. After discussion, the motion passed unanimously.
• Item 3.4 – Approval of 2026-2027 Operating/Capital Budgets and Schedule of Fees and Charges: Councilmember Casey introduced a memo to direct continued conversations between the San Jose Police Department and card rooms on Title 16 regulations and fees. The city attorney noted that reducing local oversight could undermine arguments against state Attorney General regulations. Police Chief stated that last year's fee reductions and elimination of six regulations were significant and that the department prefers more time to evaluate impacts. Councilmember Cohen offered a friendly amendment to fold the analysis into next year's budget cycle (spring 2027) rather than fall 2026, which was accepted. The item and memo were then approved unanimously. (Note: The council initially voted only on the memo; Councilmember Kamei caught that the underlying item 3.4 still needed a vote, which was then taken and passed unanimously.)

Key Outcomes

• Consent Calendar: Approved unanimously.
• Item 6.1 (Wastewater Security): Approved unanimously.
• Item 3.2 (Mayor's Budget Message): Approved unanimously with the reconciliation memo. Key directives include:
  • Adoption of the June Budget Message.
  • One-time funding for the California Room (bridge to identify sustainable model).
  • $1 million for immigration legal services (allocated via county procurement, with a reserve strategy).
  • Direction to return in fall 2026 with an analysis of cost of living drivers (to inform future focus area updates).
  • $50,000 to San Jose Police Foundation for Major Award Summary.
  • Application for SAFER grant with conditions.
• Item 3.4 (Operating/Capital Budgets and Fees): Approved unanimously with an amendment to bring forward analysis on card room fees and regulations as part of next year's budget process (spring 2027). The council directed ongoing discussions between staff and card rooms.
• Open Forum: Two speakers addressed: one on senior affordable housing and sustainable communities grants, and another criticizing the mayor's characterization of homelessness reduction statistics.