SJ City Council approves budget plan

June 18, 2010 8:44:55 AM PDT
The San Jose City Council has approved Mayor Chuck Reed's budget plan for the coming year.

The proposal closes a $118 million budget gap by cutting police, fire and library services.

It also assumes a 10 percent pay cut from union workers.

The council agreed to wait until next Tuesday to decide whether to impose the cuts, or accept the unions' last-minute offer. Instead of wage cuts, the unions' plan would shift payments into employee retirement funds from the city to workers.

The South Bay Labor Council says the council had followed the mayor over the "cliff of municipal disaster."


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