San José’s City Council unanimously approved a spending plan to fill a $50.3 million shortfall on Tuesday afternoon, largely through a mix of cuts and tapping budget reserves.
The $1.7 billion general fund budget shrinks funding for parts of Mayor Matt Mahan’s ambitious program to reduce unsheltered homelessness but comes with new money to help immigrant residents dealing with the increased threat of deportation from the Trump administration. The blow to the budget was softened by voters’ approval this month of Measure A, which increased the city’s hotel tax from 10% to 12%.
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“This is a fiscally responsible, service-sustaining and focus-driven budget,” Mahan said. “Even in a difficult budget climate, we have much to be proud of.”
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