"Let me emphasize there is no more money. The well is dry," said San Jose Mayor Chuck Reed.
With nearly 100,000 people unemployed in Santa Clara County, Reed says his top priority is creating jobs. However, he also emphasized the need to target pensions.
"This dangerous growth is being driven by retirement costs. In the past 10 years, our annual retirement costs increased by more than $90 million a year. In the next five years, they will increase by another $250 million to $400 million per year," said Reed.
Reed warned that next year's budget will have a $110-million shortfall and called on city unions, residents and city council to make a major overhaul of the city's pension and compensation system.