A deal that would have ended litigation on the challenge to San Jose's controversial pension reform initiative has been rejected by the city council, raising fears the exodus of firefighters and police will continue.
San Jose's police and fire unions said they reached an agreement with City Manager Ed Shikada that would have saved the city $300 million in pension costs over the 15 years. Union heads said the deal also would have improved benefits for new officers and firefighters.
However, Mayor Chuck Reed said the city currently does not have a proposal that is acceptable.
The city council rejected the agreement and is now working to place another measure on the November ballot that would change two parts of Measure B.
The measure, approved by voters in 2012, requires city workers, police and firefighters to begin paying more for their pension funds.
Unions blame Measure B for police and firefighters leaving the city and taking jobs elsewhere.
"The arrogance and foolishness of this mayor, now ignoring advice from his professional staff on how best to restore public safety and keep San Jose's fiscal house in order is beyond mind boggling," said Jim Unland, San Jose Police Officers Association president.
Meanwhile, Shikada late Wednesday reached out to NBC Bay Area and said there was no formal agreement with the police and fire unions.