Amid Budget Shortfall, Mayor Reaffirms Focus on on the Basics in March Budget Message
Mayor Matt Mahan is doubling down on residents’ most pressing concerns in his second budget message
FOR IMMEDIATE RELEASE
March 13, 2024
Media Contact:
Tasha Dean, Chief Communications Officer, Office of Mayor Matt Mahan; tasha.dean@sanjoseca.gov
SAN JOSÉ, CA – Today, San José Mayor Matt Mahan, alongside Councilmembers Omar Torres (D3) and Pam Foley (D9), unveiled the March Budget Message — a document that sets priorities and directs the city administration to take action when allocating the City’s multi-billion dollar budget. After the message is approved by the City Council, City Manager Jennifer Maguire will propose an operating budget based on the direction in the approved budget message. In the face of looming deficits projected in years to come and a $52.1M shortfall in fiscal year 2024-2025, Mayor Mahan reaffirms the City’s commitment to the basics—issues that became the Council’s four Focus Areas in the last budget cycle: homelessness, crime, blight and investments into jobs and housing.
According to the 2024-2025 City Manager’s Budget Request and 2025-2029 Five-Year Forecast and Revenue Projections, and in line with national trends, the local economy is slowing. A sluggish economy translates directly into lower projected tax revenue, forcing the City to become smarter with its allocations of limited dollars. Additionally, a mandate from the State and federal government requires that the City of San José clear encampments along local waterways, which may result in an estimated 1000 unhoused residents being moved, and could cost as much as $25 million. These circumstances place additional strain on an already limited budget and will force the Council to make tradeoffs as they work to address homelessness, crime and blight. The budget message directs the City Manager to bring the City’s General Fund into structural alignment while addressing the Council’s four Focus Areas.
“Our financial and environmental realities are pushing us to do what is right – get much more pragmatic on homelessness,” said Mayor Matt Mahan. “We are in for a few years of tough tradeoffs, but with this crisis comes the opportunity to reimagine the way we’ve been governing. We need to challenge status quo solutions that aren’t working and try something new for the good of all our residents.”
“As we gear up for events like the Super Bowl and the World Cup coming to San José, it's imperative that we continue investing in our Downtown—the heartbeat of our economy. By prioritizing Downtown San José’s revitalization, we ensure it remains a vibrant destination, attracting visitors from all over.” said Councilmember Omar Torres (D3).
“As we navigate challenging times, the city must make difficult tradeoffs to address both pressing issues like homelessness and maintain essential services,” said Councilmember David Cohen (D4). “I’m encouraged by our collaborative efforts in budget discussions to build a city that benefits future generations. And I am excited that as we craft this year’s budget we can begin investing San Jose Clean Energy’s reserves to build a sustainable future.”
“As stewards of finite public funds, our priority is crafting a budget that responsibly and efficiently addresses residents' main concerns," said Councilmember Dev Davis (D6). "I'm confident that our budget message optimizes our spending to bolster public safety, tackle homelessness and enhance the services our residents rely on."
“As we navigate challenging economic conditions, it’s crucial to find opportunities to wisely allocate resources in order to preserve essential programs and services within our community. Prioritizing the preservation of these services in our budget planning process is vital in sustaining the quality of life for San José residents,” said Councilmember Pam Foley (D9).
Highlights of the Mayor’s recommendations are:
Reducing Unsheltered Homelessness
Finish the 784 Emergency Interim Housing units in the pipeline
Bring basic, low-cost, low-barrier safe sleeping sites online by the end of December 2024 with enough capacity to significantly reduce the number of unmanaged encampments along our waterways
Implement a “Homeward Bound'' program whereby outreach workers have access to flexible funding to reunite homeless residents with their loved ones by paying for transportation or other relocation costs
Establish and enforce a “Good Neighbor Policy” to maintain cleanliness and reduce the impact of homelessness on the larger community as we work to provide a managed place for everyone living on the streets and creeks
Community Safety
Continue investing in recruitment and retention to increase our ranks, including creating a bootcamp for women interested in a career in law enforcement and a stipend for cadets aged 18-21
Pilot an equitable speed safety camera program in our priority safety corridors or near school sites, as informed by the Vision Zero Action Plan (made possible by SB 645)
Work with the county to determine and potential fund 911 call diversion initiatives to reduce the strain on our understaffed police department and provide those in mental health crisis the appropriate response
Managing Blight
Improve our 311 system to better serve residents in the capital of Silicon Valley with a native app
Install graffiti and illegal dumping deterrents like boulders and bollards that prevent blight in the first place
Explore cost-sharing agreements with Caltrans, VTA and other relevant agencies to implement them as soon as possible with a goal of meaningfully reducing repeat graffiti in costly and highly visible hotspots
Attracting Jobs and Housing
Explore pausing or reducing certain building fees where feasible to aid development of housing
Create a fee calculator that estimates an applicant's cost of doing business with the city, starting with high-impact permit types that facilitate job and housing growth
Ensure that the next generation of innovators choose to start their AI and advanced manufacturing companies in San José, by exploring incentives for start-ups with fewer than 100 employees to start up in or relocate to San José
The March Budget Message will be voted on next week at the City Council meeting on March 19, 2024. After it is approved by the council, the City Manager will propose an operating budget based on the direction in the approved budget message.
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About the City of San José
With nearly one million residents, San José is the largest city in the Bay Area and one of the nation's most diverse. San José’s transformation into a global innovation center in the heart of Silicon Valley has resulted in the world's greatest concentration of technology talent and development.