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Weekly summary for San Jose
May 4, 2026 to May 10, 2026 • Updated May 6, 2026
This week in San Jose, the City Manager released a budget proposal for fiscal year 2026-27 that outlines millions of dollars in service cuts to address a $50 million deficit. The proposal comes amid ongoing challenges including weak sales tax revenue, rising pension costs, and a workforce reduced to minimal levels. To help close budget gaps, the city is also pursuing a hotel tax increase through Measure A, which would raise the tax rate from 10% to 12%, targeting visitor contributions.
Key points from recent activity in San Jose include:
- The City Manager’s budget proposal details broad cuts across city services to manage the shortfall.
- Measure A, if approved by voters, would increase hotel taxes to generate additional revenue.
- The city continues to face a $56 million budget shortfall driven by multiple fiscal pressures.
- Mayor Mahan emphasizes protecting funding for housing, homelessness, and public safety despite budget constraints.
What to watch: The outcome of Measure A and further budget discussions will be critical in shaping San Jose’s fiscal outlook and service levels in the coming year.
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Latest update
Agenda item: 2026-2027 Budget Study Sessions. City Council recently discussed this issue.
Mayor Matt Mahan, who lost his bid for California governor, appears likely to maintain his governing majority on the City Council and to win a hotel tax hike that his budget relied on.
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Related agenda items
This list highlights the strongest recent agenda items where this cause is showing up in formal meeting business.
Santa Clara County Board of Supervisors
2026-03-04
6: Discuss the impact of H.R.1 and County Budget on County services and approve recommendations, if any