The San Jose City Council voted 7-4 against Mayor Matt Mahan's proposal to link a portion of councilmembers' salaries to performance. Mahan aimed to withhold 5% of salaries based on how well goals related to community priorities were met, but council members expressed concerns that this approach could create misaligned incentives, prioritizing short-term gains over long-term public good. Mahan had previously sought a ballot measure for 2026 but later modified his proposal to reduce complexities and save taxpayers about $1 million. The rejection signals a preference for focusing on community service rather than profit-driven methodologies.
In the public sector, we serve the public good that includes protecting vulnerable populations, defending civil rights and cleaning up blight in neighborhoods that may never yield a high economic return on investment.
Applying a private sector methodology could create perverse incentives, including a focus on short-term goals over the city's long-term health and discourage dissenting opinions.
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