San Jose officials are grappling with a larger than expected budget shortfall, prompting a hiring freeze and funding cuts across various departments. The City Council is set to discuss the 2024-25 mid-year budget, as revenues from sales tax stall, revealing a gap of $25 million to $30 million below projections. In addition, a projected budget deficit of $60 million for the next fiscal year could lead to job eliminations. Recommended actions include liquidating reserves and reallocating funds to manage immediate expenses, alongside a push for more long-term housing solutions.
San Jose officials are enacting a hiring freeze and reviewing funding cuts amid a significant budget shortfall projected at $25 million to $30 million below expected levels.
The projected $60 million budget deficit for fiscal year 2025-26 highlights the ongoing fiscal challenges, primarily driven by a concerning 11% drop in sales tax revenues.
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