David Dodd 2:33 a.m., May 19
San Jose Nixes "State of Fiscal Emergency" but Will Study Reduction of Retirement Benefits
The city council of San Jose this afternoon (May 24) voted 8-3 against the mayor's proposal to declare a state of fiscal emergency, but voted to study various suggestions for reducing retirement benefits, according to the San Jose Mercury News. The city faces a $115 million deficit, its 10th straight shortfall, and half of it is driven by soaring pension costs, says the Mercury News. Today's vote sets up a June 21 showdown at which the council will vote on formally declaring the emergency and decide which pension reforms might go on the ballot in November.