MAY 6, 2026 | City Council 2026-27 Budget Study Session

The City Council of San Jose, CA, held a budget study session on May 6, 2026, focusing on the proposed 2026-27 budget. The session included detailed presentations by the city manager, budget director, and economic development director, outlining a $50.3 million shortfall in the general fund and strategies to address it through revenue enhancements, cost reductions, and service optimizations. Key procurement-related discussions involved funding allocations for capital projects such as a $45-50 million City Hall water intrusion project, with plans for design-build contract awards later in the fiscal year. The council also discussed budget impacts from potential revenue losses related to transient occupancy tax (Measure A), educational revenue augmentation funds (ERAF), and cardroom regulations. Additionally, the budget includes funding for business improvement districts, workforce development programs, and cultural projects like the reinstallation of the Momotaro statue funded through transient occupancy tax revenues. The session emphasized maintaining core services, minimizing staff impacts, and strategic investments in housing, economic development, and infrastructure. Council members raised concerns about workforce development, equitable distribution of resources across districts, and the need for ongoing capital funding strategies, including potential future general obligation bonds. The meeting set the stage for further detailed budget discussions in upcoming sessions and public hearings.