The Police Officers Association announced Friday that its members would accept a one-time 10 percent cut in pay and benefits for the coming year. Union leaders cast the move as a generous proposal that would save jobs. Mayor Chuck Reed immediately called the offer inadequate, and warned that it came dangerously late in the game.

San Jose City Manager Debra Figone unveiled her proposed budget for the 2011-12 fiscal year on Monday, and the forecast is grim. With a projected shortfall of $115.2 million, Figone’s budget says 588 city positions will likely need to be eliminated, which comes out to roughly 10 percent of all workers. Of that amount, 370 workers would be subject to layoffs. These numbers come under the assumption that the city will get all 11 labor unions to agree to an ongoing 10 percent cut in total compensation for city workers. If agreements are not reached, an additional 446 positions would need to be eliminated.

Cinco de Mayo won’t be quite the extravaganza it normally is this year. San Jose’s annual parade and festival has been canceled. Mounting costs and a lack of cooperation from the city were reasons cited for the cancellation, according to the American GI Forum, a veterans group that puts on the celebration.

In the 10th year of budget cuts, San Jose City manager Debra Figone has said more than 600 employees could lose their jobs to help tackle a $115 million deficit for the upcoming fiscal year. The process of handing out pink slips began this week, and more than 100 police officers are being notified that they could be out of a job come July.

If a framework for regulating medical marijuana distribution in San Jose is not put in place by the end of Tuesday’s City Council meeting, Councilmembers Nancy Pyle and Kansen Chu will likely make a move to ban all medical marijuana dispensaries in San Jose. After the council could only agree on a few land use and zoning recommendations last week, Pyle has suggested shutting down all clubs. Chu’s proposal goes even further.

California teachers could soon be required to include the history of gays, lesbians and transgenders in their curriculum, after a landmark vote was passed Thursday in the state Senate.

The debate over what to do with the city’s 100-plus medical marijuana collectives looks like it will finally result in some action Tuesday, when the City Council will vote on setting up a complete regulatory program.

The plaintiff known as “Jane Doe” in the DeAnza gang rape trial will not be awarded any punitive damages, a jury decided Thursday.

UPDATE: Jane Doe’s attorney responds to verdict.

The local construction industry had a bone thrown its way Tuesday, as the first portion of a BART extension project has received federal support, according to a San Jose Business Journal report.

San Jose’s airport looks to be moving one step closer to privatizing its fire and security services, leaving city firefighters and police officers out of the loop in cost-cutting measures.

The future of professional sports in the nation’s 10th largest city is in limbo. In furious preparations for an opportunity that may never materialize—and to protect the land holdings that may one day house a ballpark—San Jose has taken extraordinary steps.

With the firefighters’ union becoming the first labor organization to formally reach a deal on compensation concessions with the city last week, this week’s City Council meeting will feature even more discussions regarding labor negotiations. Other items of note will include the approval of assistance for low-income housing and a proposed rate increase for recycling.

The battle over redevelopment agency dollars will now be confined to just the city and state here in San Jose. On Wednesday, a settlement was reached between the city and Santa Clara County, which was owed $62.9 million.

Pat Dando confirmed Wednesday that she will be extending her stay as CEO of the San Jose Silicon Valley Chamber of Commerce. Dando has held the role since the summer of 2005 and was expected to have her last day at the end of this month.

The Police Officers Association published a report of a weekend drive-by shooting to show why it says the public will be less safe if officers are laid off due to the city’s budget crisis

On March 22, the city and the firefighters union, Local 230, will formalize an agreement for a 10 percent cut in total compensation over a two-year period. The agreement will also set a standard for fire engines to be staffed by four firefighters instead of five for further cost savings.