The San Jose City Council is expected to approve a budget that will close a $118.5 million deficit today, and it is still unknown what the costs will be to workers. The city has proposed reducing base pay, raising employees? health care costs, raising employee pension contributions for one year. The city says that their proposal would result in a $13.7 million savings overall, and a $6.8 million reduction in the deficit. A union counter-proposal would only up the worker contribution to pensions; something the unions say would achieve the same overall goal. City officials have not stated anything explicitly wrong with the union proposal, only a legal issue with the city charter. The police and fire departments may also see cuts in personnel, due to a lack of a pay-cut agreement.
See "San Jose council to vote on budget closing $118M deficit but limits cuts to libraries, pools, centers", John Woolfolk, San Jose Mercury News, June 16, 2010