UPDATE: The city of San Jose came to an agreement on tier-2 retirement benefits with the POlice Officers Association on Thursday afternoon, avoiding Friday’s arbitration hearing.

San Jose faces a $2.9 billion unfunded liability in pension and retiree healthcare costs. The figure is mind-boggling. The city still has to figure out how to afford those unfunded obligations. But that’s another story for another time. On Friday morning, the public—for the first time—will have a chance to sit in on arbitration hearings that have been held previously behind closed doors, when the city negotiators sits across the table from San Jose’s police union.

Ever since Chuck Reed was elected mayor of San Jose in 2006, he has held quarterly meetings with the president of the Santa Clara County Board of Supervisors. The goal of these meetings is to allow city and county officials to discuss legal disputes without lawyers present. But that all changed last week, when current Board president Ken Yeager snubbed Reed’s request for a meeting.

Two years ago, District Attorney Jeff Rosen cleverly cushioned the effects of county-mandated pay cuts for some of his senior prosecutors through an accounting loophole. After his top supervisors were disproportionately affected by the cuts, he started giving them “admin leave” so they could collect vacation time for a payout down the road to replace lost wages. The slick move, legal under county policies, got the attention of County Executive Jeff Smith, who’s now asking Attorney General Kamala Harris to investigate. The question is: What’s really happening here?

Today represents the unfortunate five-year anniversary of a very painful situation for the city of San Jose. As reported previously in the San Jose Mercury News, 2008 was the year city officials terminated, or at least tried to terminate, a firefighter on charges of sexual harassment against female co-workers.

On March 24, Metro/San Jose Inside reported that Santa Clara Family Health Foundation (SCFHF) executive board member and officer Cindy Chavez participated in a board decision to provide $250,000 in funding to the Yes on A committee, on which she and Kathleen King—CEO of SCFHF—constituted a majority of the three-member committee. The committee subsequently turned over a large portion of the funds to the South Bay Labor Council Issues PAC and Democratic Central Committee’s PAC. Because of Chavez’s obvious conflicts of interest—she headed up the SBLC at the time—and the importance of a countywide sales tax increase, which will be paid by all residents, Metro/San Jose Inside felt this was a matter of public interest.

On Friday, nine nonprofit executives wrote a letter to express their thoughts on recent articles. They worry that investigative reporting could make nonprofits “the target of unfounded accusations and public reproach.” Because we feel this is a useful debate to have, and because we want to give differing points of view the proper attention they deserve, we are running below the letter in full, in addition to its appearance in the comments section where it was submitted. —Editor

The county’s four remaining supervisors voted Tuesday to hold a million dollar special election on June 4 to fill the seat of soon-to-be-jailbird George Shirakawa Jr. If only there was an app for that. Considering the job pays six figures, provides a CalPERS pension, comes with all kinds of perks—assuming you don’t exceed a $3,000-a-year local meal allowance with your P-Card (really?!)—and could last 12 years if all three terms are completed, there should be no shortage of entrants.

The U.S. Olympic Committee (USOC) sent letters Tuesday to the nation’s largest 25 metro areas, inviting city officials to submit a bid to host the 2024 Summer Olympics. A day later, San Jose Mayor Chuck Reed shot down any idea of San Jose hosting future Olympic games in an email city staff this week.

San Jose released its annual list of city salaries late last week, reminding us once again where the bulk of the municipal budget goes. Like most municipalities, payroll accounts for the city’s single highest expense. San Jose shelled out $596 million, or 62 percent of this fiscal year’s budget, on payroll for its 5,500 employees. This year, retired Sgt. John M. Seaman topped the list, receiving total compensation in the amount of $308,345.

Much has been said recently about law enforcement budgeting. One of the shared community goals is to increase the actual number of police officers. In addition, another shared community goal is for pension reform. In my opinion, these two objectives are inextricably linked.

In a report at Tuesday’s City Council meeting, City Manager Debra Figone will talk about efforts to save city jobs and services while noting the sacrifices employees have made in recent years. Also on Tuesday, the council will discuss the county’s Habitat Conservation Plan and the transfer of several properties.

Since 2009, the San Jose Fire Department has responded to emergency calls slower than previously reported. The question is by how much. In a memo sent out Friday by the city manager’s office, Fire Chief William McDonald explains that “data used in the calculation of the response-time measure were excluded in error.”

The 2012 election is barely over and already people are opining on who will contend for the Presidency in 2016 or who will be the next Mayor in 2014. Who will replace Supervisor George Shirakawa if he resigns? Which brings us to the mental gymnastics some local pundits are making regarding recent changes at the South Bay Labor Council. Is Cindy Chavez running for Mayor? Is she positioning herself for Supervisor?

The list of people to reimburse the county for meals Supervisor George Shirakawa expensed to taxpayers has now grown to eight. Included in the updated list are Shirakawa’s lobbyist friends Tom Saggau, Dustin DeRollo and Joe Guerra, as well as San Jose Councilmember Xavier Campos.

We can argue over whether it is a fiscal cliff or slope, but the real challenge for America in the coming decades is improving the mediocre results of public education. The facts show that we are in a precarious position as a nation and as the largest state—11 percent of America’s children are enrolled in California schools.

I fear we are entering a new cycle of benign neglect of school reform, where the status quo continues and student achievement results do not match the urgency of the time. Yet there are some true reformers that should be mentioned.

San Jose Mayor Chuck Reed took a trip to Iowa this past weekend to speak with the state’s conservative governor and a taxpayer group about pensions.