San Jose officials took a bold step on March 18, 2025, approving an urgent budget plan proposed by Mayor Matt Mahan aimed at addressing the critical issues of homelessness and public safety in the city. The City Council voted 7 to 4 during a tense meeting that saw passionate testimonies from both advocates and critics of the mayor's plan.
The approved budget will redirect a staggering 90% of tax-funded affordable housing dollars, coming from Measure E—a property transfer tax approved by voters in 2020—toward temporary homeless shelters for the upcoming fiscal year. This move comes amidst an estimated budget shortfall exceeding $100 million over the next two years.
Mayor Mahan underscored the city's accountability, stating, "We will hold people accountable for coming indoors when we ask our voters to spend tens of millions of dollars to build safe and dignified shelters and housing." This budget is not merely about reallocating funds but also entails significant policy proposals, such as a controversial 'responsibility to shelter' initiative. Under this proposal, homeless residents who decline shelter after being offered three opportunities would face potential arrest for trespassing, a measure that has ignited considerable debate.
Opposition in the council was fierce, with Councilmembers Pamela Campos, David Cohen, Peter Ortiz, and Domingo Candelas opposing the budget. Cohen raised concerns about linking pay raises for city officials to their performance, fearing that such policies may encourage short-term decision-making rather than focusing on long-term solutions for homelessness.
Meanwhile, grassroots protests erupted outside City Hall, where advocates expressed their discontent with Mahan’s approach. Critics argue that such policies unjustly criminalize homelessness rather than provide the necessary support for unhoused individuals. This sentiment resonated through the emotional reflections of Sandy Perry, board vice president of the South Bay Community Land Trust, who stated, "There’s a shortage of 3,064 shelter beds. So, there’s no choice here. People are forced out onto the streets in San Jose by the failure of San Jose City Council and San Jose’s Mayor to provide housing." Perry's comments highlight the struggle to balance accountability with compassion in addressing the housing crisis.
Mahan's approach contrasts sharply with that of neighboring cities, as he noted, "We have neighbors who are outright banning camping without offering housing and shelter — that’s criminalizing homelessness." His administration seeks a middle path, investing in safe places for individuals while also stressing the importance of accountability. However, questions loom about the feasibility of implementing such measures successfully. Local economist Chuck Cantrell raised an important point regarding the disproportionate impact of homelessness on Black residents in San Jose, citing that Black individuals constitute approximately 17% of the homeless population, despite representing only 2.5% of the city's total populace. He remarked, "Jailing unhoused people will lead to the greater numbers of Black people in our prison system for the crime of being unhoused."
Nonetheless, many residents are expressing their support for Mahan’s strategies. During the City Council meeting, one resident who spoke in favor of the budget shared, "I’m here to support the mayor’s budget message for March. I’ve seen the heartbreaking reality of homelessness along Coyote Creek near my neighborhood. People are dying from extreme weather and being ravaged by addiction." This reflects a growing frustration in the community regarding the escalating homelessness crisis.
As the 2025-26 fiscal year approaches, the council forecasted the shortfall has been reduced from $60 million to $46 million, while a $53 million budget deficit is expected for 2026-27. In response to ongoing financial strains, city officials imposed a hiring freeze last month, leading to protests against potential staffing cuts by city workers and labor union leaders. They are now calling for an increase in staffing amid the reduced budget shortfall.
The San Jose City Council will get together again in June for their final vote on the budget, a critical juncture as they attempt to navigate a path forward through these pressing challenges. With tensions around homelessness and housing continuing to rise, whether Mahan’s approaches will yield the intended results remains to be seen. In a city grappling with these systemic challenges, residents yearn for effective solutions that provide shelter and dignity to those in need.
