San Jose: Mahan calls for belt-tightening in budget, but ups spending to fight homelessness

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San Jose: Mahan calls for belt-tightening in budget, but ups spending to fight homelessness
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Despite a budget deficit, San Jose is expected to avoid layoffs — but it is likely to cut vacant positions.

Mayor Matt Mahan begins a press conference to announce a camping ban along a portion of the Guadalupe River in downtown San Jose, Calif., on Saturday, Jan. 20, 2024. San Jose’s proposed $5.3 billion budget for 2024-25 shows the city tightening its belt as it prepares to shell out $27 million in the next year to clear homeless encampments from its waterways to comply with the Clean Water Act.

The budget proposes spending $15 million from Measure E to develop alternative sleeping sites for 500 unhoused people currently living along the city’s waterways, which it must do by June 2025 under a state mandate from the San Francisco Bay Regional Water Quality Control Board. If it doesn’t, the city

Critics of the mayor’s approach to homelessness are concerned about the continued shift of dollars away from permanent housing. “That’s really non-negotiable — we cannot be in violation of the Clean Water Act or they can sue us into oblivion,” Mahan said, adding that the city is still budgeting more for permanent affordable housing than interim housing like safe parking sites. “We have to be willing… to be flexible with the Measure E dollars and find other sources of funding for affordable housing.

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