San Jose City Council Approves Mayor Mahan’s Budget with Strong Support

On Tuesday (June 10), the San Jose City Council voted 9-2 to approve Mayor Matt Mahan’s budget message, advancing a comprehensive strategy to address homelessness and public safety. The adopted budget includes key amendments to the City’s Code of Conduct, establishing clear expectations around accepting shelter or housing offers. It also launches an enhanced engagement program to better connect unsheltered residents with appropriate housing and services, improve coordination across city departments, and increase accountability through consistent tracking and communication.

A new Neighborhood Quality of Life Unit within the Police Department will be created to address health and safety impacts of large encampments. This unit will work to connect individuals with diversion programs and, when appropriate, refer chronic cases to behavioral health, substance abuse support, or CARE Court pathways.

The budget prioritizes investment in lower-cost, interim housing solutions and reflects a bold goal: to end unsheltered homelessness in San Jose as we know it.

These policy priorities closely align with the Bay Area Council’s months of advocacy and represent a significant step forward in addressing the region’s homelessness crisis.

Here are the key highlights from Mayor Matt Mahan’s proposed FY2025-26 budget:

• Budget Overview
  • Total Budget: $5.57 billion
  • Shortfall Addressed: Closes a $35.6 million gap for this year; reduces next year’s projected deficit from $52.9 million to $25.9 million
  • No Major Layoffs: Avoids virtually all layoffs and adds a net five city positions
• Affordable Housing & Homelessness
  • Measure E Funds: 90% allocated to interim homelessness solutions instead of permanent housing
  • New Affordable Housing Support: $60 million in new funding availability announced for affordable housing development
  • Shelter Expansion: City shelter network to expand to nearly 2,000 placements
• Immigration Services
  • Increased Funding: Budget allocates $1 million–$1.5 million for immigrant support services in response to federal enforcement actions and grant cancellations
  • Emphasis on protection and support for undocumented residents
• Public Safety & Core Services
  • Public Safety: Receives 27% of the city’s operating budget
  • Environmental & Utility Services: 30%
  • Neighborhood Services and Transportation/Aviation: Each receives 10%
  • Crime Rate & Traffic Fatalities: Reported as decreasing due to recent investments
• Special Events & Economic Development
  • 2026 Investments: Prepares for hosting the Super Bowl, FIFA World Cup, and NCAA March Madness, with an eye on long-term economic growth
• Community & Senior Services
  • Senior Programs: $300,000 in one-time funding restored to soften cuts to grants for senior services