There’s bad news for the City Council again. The deficit is up 16 percent and now stands at $116.2 million. The problem, says City Manager Debra Figones, is employee pension costs, and especially the pension costs for retired policemen and firemen. While they were expected to grow by $38 million during the next fiscal year, the estimate has been adjusted and now stands at $53 million. Exacerbating the problem is reduced revenue from business tax receipts, which continues to drop.

When Peter Friess came to the Tech Museum in 2006, he brought with him a vision of transforming it into a world class institution with “blockbuster” traveling exhibits and constantly updated permanent exhibits. He believed that this would stop the museum’s sharp decline from 1999 to 2005, when revenue dropped 50 percent and attendance declined from 809,000 visitors to just 391,000.

How far do citizens’ rights to assemble freely extend? Citing an increasing gang presence in the city’s streets, Councilmember Nora Campos says it may be too far. The ACLU thinks differently.

Mayors of California’s ten largest cities met with the CEOs of some of the state’s ten largest companies at San Jose’s Morton’s Steakhouse last night for more than just an evening of rare beef and wine. They are all fed up with how the state is operating, and decided to work together to fight for real changes

In a major reversal of a controversial decision, Dan Fenton of Team San Jose, the group that operates the San Jose Convention Center, has backed down from an earlier decision granting Teamsters Local 287 exclusive rights to set up trade shows at the Convention Center.

With a record budget deficit approaching $100 million and the limited sources of income dwindling in the recession, San Jose’s City Council is looking for creative ways to raise income. According to City Councilmember Nora Campos, “the only one of the items that even polled fair and that we may have an opportunity to receive some revenues” is the expansion of San Jose’s licensed card tables. According to Mayor Chuck Reed, the resulting tax revenues could be as much as $2-3 million per year.

People in San Jose are happy. In fact, they’re happier than the residents of any other major city in the U.S. That was the finding of the Gallup-Healthways Well-Being Index, which was released yesterday. To be fair, there are other, happier places, like Honolulu, Hawaii, or Holland, Michigan (huh?), but when it comes to the country’s biggest cities—the ones with populations of 1 million-plus, San Jose was at the top, beating out D.C., Raleigh and Minneapolis.

Mayor Chuck Reed has a big problem ahead of him. San Jose is faced with a $100 million shortfall, which means the city is going to have to eviscerate its budget. To achieve that end, he’s planning a budget study session for next week

Rosemary Kamei emailed supporters and posted to her campaign website earlier today to announce that she is dropping out of the race for Santa Clara County Supervisor Don Gage’s seat. In a telephone intervew this afternoon,  she said she’d made the decision partly because of the crowded field.

“I thought long and hard about this after looking at the race and considering all the candidates,” she said. Pressed to elaborate, Kamei laughed. “There’s a lot of candidates! You know—they are good candidates, and for me personally, it was a decision I’ve made for myself. I chose to step down.”

The East Bay Express is reporting that a Major League Baseball task force will present its findings on the A’s proposed move to San Jose to Commissioner Bud Selig on Monday. The Express reported this afternoon that Oakland Mayor Ron Dellums made the statement during a speech to the Oakland Chambers of Commerce at the Oakland Airport Hilton on Thursday.

Dellums also reportedly said he sent a message to Selig stating that a ballpark in San Jose or Fremont would result in more long-distance trips to games, creating more greenhouse gas emissions.

Last July, an audit by the Santa Clara County Office of Education found a series of financial irregularities in the East Side School District. A series of articles in the Mercury News cast a cloud of suspicion over superintendent Bob Nuñez and other district officials. Nuñez went on administrative leave three months ago, as the investigation into what really went on in the district continued.

Assemblyman Joe Coto (D-San Jose) isn’t happy with what he’s been reading about the SJPD in the news recently. Joined by Paul Fong (D-Cupertino), he is calling on State Auditor Elaine Howle to investigate San Jose’s police force

High-speed rail may be coming to California faster than expected. The federal government’s stimulus program approved $2.2 billion for environmental planning and the design and construction of four corridors, including the San Francisco-to-San Jose segment of the route.

The downtown nightclub Wet is back in the news today. Wet sued the city last autumn after SJPD Chief Rob Davis closed it down following a much-publicized Sept. 7 brawl, but its lawsuit was rejected by the judge. Still, because the lawsuit was thrown out on technical grounds, the city worried that the police chief’s ability to yank a club’s license could yet be considered unconstitutional if challenged in court.

The San Jose City Council weighed the possibility of hosting the U.S. Gymnastics Team’s Olympic Trials at today’s city council meeting. The Council went over a memorandum Mayor Chuck Reed issued on Jan. 15, outlining the city’s bidding effort for the event.

An emotional District 4 Supervisor Ken Yeager delivered the State of the County address earlier this morning as the first openly gay President of the Santa Clara Board of Supervisors.

Before a crowded hall of high-profile local officials—including District Attorney Dolores Carr, Sheriff Laurie Smith, District 1 candidates Teresa Alvarado and Forrest Williams, and the mayors of San Jose, Santa Clara and Campbell—Yeager recalled being a 26–year–old staffer for former county supervisor Susanne Wilson on Aug. 6, 1979, the day the board heard fiery arguments against a ban on discrimination against gays for housing or employment.