San Jose City Council Accepts Pay Cut
SAN JOSE (CBS SF) - The San Jose City Council voted Tuesday to accept a 10 percent cut in salary and benefits for the mayor and council members, amid a $115 million budget deficit.
The council approved a recommendation to put in place a 10 percent cut in total compensation, including salary, car allowance, medical, dental, and other benefits, on an 8-3 vote, with Councilmen Kansen Chu and Xavier Campos and Councilwoman Nancy Pyle dissenting.
The council also agreed to direct city staff to begin exploring a change in retirement plan benefits for current and future council members, as was suggested in a memo by Councilman Pete Constant.
A salary setting commission made the salary rate recommendations, as it is required to do every two years under San Jose's city charter. The city council can approve a salary rate lower than the recommendation, but not higher.
The commission recommended that the council reduce the mayor's annual salary from $127,000 to $114,000 and the council members' annual salaries from $90,000 to $81,000.
The commission additionally recommended cutting the car allowance for the mayor and council members from $600 per month to $350 per month.
The salary change will be in effect from June 26 through June 30, 2013.
Since taking office in 2007, Mayor Chuck Reed has voluntarily given up the monthly car allowance and all pay increases, holding his pay at $105,000, according to the mayor's office.
Last year, the council agreed to a one-time 10 percent reduction in total compensation.
Pyle said she could not support the ordinance because she needed more time to study Constant's recommendations. Chu and Campos opposed the recommendation to reduce council members' salaries, saying that it would limit the talent pool and attract mostly people who are wealthy.
(Copyright 2011 by CBSSan Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)
