San Jose passes budget, compromises on mayor’s housing plan

A lengthy battle over how to prioritize revenue from a tax measure ended Tuesday with city leaders striking a compromise before approving the city’s multibillion dollar budget.

The most contentious part of Mayor Matt Mahan’s budget plan — how to spend Measure E dollars– failed in a 6-5 vote. Measure E is a 2020 voter-approved property tax to fund homeless and housing solutions, and has become the city’s main tool to fund affordable housing development. The mayor wanted to divert nearly $23 million of dollars from affordable housing development and into homeless shelters, known as interim housing, to quickly address the city’s homeless crisis. Instead, councilmembers voted 10-1 to approve a compromise between two plans that retains the majority of Measure E dollars for affordable housing. Councilmember Bien Doan was the lone dissenter.