SAN JOSE -- Mayor Chuck Reed will release his budget proposal later today with recommendations for how the city should divide scarce dollars among employees and program needs.

The city's budget office a week ago recommended spending $11 million on raising compensation for employees who have taken pay and benefit cuts to help the city weather severe budget shortfalls in recent years. But the city manager has not recommended how that would be divided among the city's employee unions.

Reed has said he favors raises targeted at retaining veteran employees rather than across-the-board increases.

The mayor's "budget message" provides guidance to the city manager in preparing a draft budget, which the City Council must adopt before the end of June for the budget year that begins in July. The council will hold hearings on the budget message Tuesday and is expected to vote on it March 26.

Contact John Woolfolk at 408-975-9346. Follow him on Twitter at Twitter.com/johnwoolfolk1.



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