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There are no easy answers or painless solutions to balancing San José’s budget and eliminating the structural budget deficit. But under Mayor Reed's leadership, the City Council has worked in partnership with residents, businesses and city workers to close budget gaps while preserving critical services such as police, fire, libraries and community centers.

• Mayor Reed has led the drive to implement much-needed fiscal reforms - including retirement reform - in order to end the city's chronic budget deficits and restore key services to the community.
• After enduring 10 straight years of budget cuts, Mayor Reed has drawn a line in the sand and set a goal to restore core services to January 2011 levels and open the city's vacant libraries, community centers, fire stations and police substation before he leaves office.
• In his 2010 State of the City Address, Mayor Reed called on city employees to give back 10% in total compensation to help close the city’s ongoing budget gaps. By June 2011, the City had achieved the 10% concession for all employees (including the Mayor, Council and executive management), saving hundreds of jobs and vital city services.
• Mayor Reed has instituted a community-based budgeting process to gather public input and ensure that the city's budget reflects the community's spending priorities. Read the Mayor's Budget Messages
• Recognizing the importance of leading by example, Mayor Reed has voluntarily reduced his pay (to the level it was during his predecessor’s term) and waived his monthly car allowance every year since taking office in 2007.

City Council Places Retirement Reforms on June 2012 Ballot

UPDATED: 12/6/2011
On December 6, the City Council voted to place a Retirement Reform Ballot Measure before the voters during the June 2012 presidential primary election. The Council also directed its negotiating team to immediately invite all of its employee unions to continue participating in mediation, which leaves open the possibility of modifying the final ballot measure language if an agreement can be reached before March.

Read the Mayor's memo outlining the approved recommendations and the current ballot measure language. You can also view this Fact Sheet on the proposed reforms.

Over the past six months, the proposed retirement reforms have been modified several times as a result of negotiations with the City's employee unions. Most recently, the ballot measure was revised such that retiree COLAs would only be suspended if the City Council decides to declare a fiscal emergency.

In light of the fact that the Police and Fire Retirement Board's independent actuary - Cheiron - is now projecting that next year's retirement costs will be significantly lower than they previously estimated, the Council deferred a decision on officially declaring a fiscal emergency until Cheiron is able to provide additional information on their new projections. Learn more

- Learn more about Retirement Reform and read about San Jose's Pension Problems.

Other Recent Budget News

Police Officers Union Agrees to Extend 10% Pay Cut Through Next Year - POSTED: 1/17/2012
On January 10, the City Council approved an agreement with the San Jose Police Officers Association (POA) that extends a 10% pay cut for police officers through the next fiscal year. Five other unions (IAFF Local 230, AEA, AMSP, CAMP and ABMEI) previously agreed to two-year contracts that also keep the 10% pay cut in place through FY 2012-13.

"A 10% pay cut is a significant sacrifice and I'd like to thank our police officers for extending this concession for another year," Mayor Reed said. "This agreement will go a long way toward helping us minimize service cuts and layoffs in next year's budget.

Statement on SIEPR Report - POSTED: 12/14/2011
Mayor Reed has released the following statement regarding a report by the Stanford Institute for Economic Policy Research (SIEPR) analyzing the City of San José’s public pension costs and the need for reform. Read more

Statement from Mayor Reed on the Retirement Reform Proposal Made by Five Employee Unions - UPDATED: 10/11/2011
Mayor Reed has released the following statement in response to a retirement reform proposal made by five of the City's employee bargaining units. Read the statement Read an information memo from the City's negotiating team

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