San Jose passes its budget: 85 fewer jobs, keeps library hours

San Jose
City Council Meeting
June 9, 2026

TL;DR

• San Jose closed a $50.3 million budget gap, leaving 85 fewer jobs overall, most of them vacant, while keeping library hours and parks funded.
• The council put the full $1 million for immigrant legal defense out now, instead of holding half in reserve.
• A separate vote approved an $11,678,000 contract to upgrade security at the regional wastewater plant.
• The library parcel tax on local property owners will rise 2.48% for the coming budget year.

What happened

1. San Jose passes its 2026-27 budget with 85 fewer jobs
   1. San Jose closed a $50.3 million budget shortfall for the 2026-27 budget year. The council balanced the plan by cutting costs, finding new revenue, and leaving 85 fewer jobs overall.
   2. Most of those positions are already vacant, and the city says displaced workers can be reassigned. A hotel-tax increase voters passed in June also helped shrink the cuts.
   3. What this means for you: The services you rely on hold steady this budget year. Library branch hours, including Sundays, stay in place, and no current crossing guards lose their jobs. The city already projects another $26.8 million shortfall for next year.
2. The full $1 million for immigrant defense goes out now
   1. The city will release the full $1 million for immigrant legal defense right away. The mayor's plan had set aside half of that, $500,000, in reserve.
   2. Dozens of residents and groups asked the council to free up the money now. The funding goes to legal-aid providers through the same county-partner process the city used this year.
   3. What this means for you: Local legal-aid groups get the full $1 million now, which they say lets them add staff before any rise in immigration enforcement. If you or a family member needs immigration help, those are the services this money supports. Councilmember Ortiz said an immigration enforcement vehicle was recently seen in his district stopping residents and asking about citizenship.
3. Wastewater plant gets new security cameras and card readers
   1. The regional wastewater plant will get new security cameras and card readers. The council awarded the construction work to Blocka Construction for $11,678,000.
   2. The deal includes a 10% contingency of $1,167,800. The money comes from shifting funds already set aside for the treatment plant, not from new taxes.
   3. What this means for you: This is a security project at a city facility, not a change to your water or sewer service. The plant handles wastewater for San Jose and Santa Clara, and the work pays for upgraded cameras and entry controls.
4. Your library parcel tax rises 2.48% next year
   1. The library parcel tax on local property owners will rise 2.48% for the 2026-27 budget year. It will appear on the county property tax roll, and it helps pay for the city's libraries. The council set the new rate without debate, grouped with other routine business.
   2. What this means for you: If you own property in San Jose, your library parcel tax will be 2.48% higher than this year. It is one of the line items on your annual property tax bill.

What residents brought up

• Immigrant defense funding. Dozens of speakers, many with SOMOS Mayfair, Amigos de Guadalupe, and SIREN, urged the council to release the full $1 million now. An organizer with SIREN said earlier funding helped the group double its work and hire attorneys, two of its four new staff. Speakers said the money lets nonprofits prepare before a crisis, not after.
• Policing of unhoused residents. A few speakers raised concerns about a new team in the budget tied to policing unhoused people. One speaker said it would push people toward jail and warned that unhoused residents who lack legal status are left without services or housing. A District 6 resident with the group SURJ asked the council to lean on care, not policing.
• Small-business costs. An organizer with SOMOS Mayfair asked the council to cut business-license fees for small businesses in East San Jose. A resident urged the city to keep studying the business tax. The same resident noted a city table showing most of that tax comes from businesses with fewer than 35 workers.

Also happened

• Kept the California Room at the King Library open one more year with $245,000 in one-time funds.
• Restored $54,531 to fund 30 youth summer jobs through the San Jose Works program.
• Voted to seek a federal grant to help open and staff Fire Station 32, with Firefighters Local 230.
• Directed the city manager to study what is driving up the cost of living and report back in the fall.
• A proposal to fund extra District 7 police overtime, by cutting a $250,000 historic-buildings inventory, failed when no other council member backed it.
• Approved three proclamations: the 250th of U.S. independence, Philippines Independence Day, and Portuguese Heritage Month. The council adjourned in memory of regional transit leader Rod Diridon Sr.

For any updates or corrections, please email steven@polisdesk.com