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reporter: this is how san jose s deputy city manager explained it. the city s fiscal reform plan and the actions the city has taken have not been based on pessimistic scenarios, 650 or otherwise. the number of 650 has been used by our mayor. he has responded as to why he used it. reporter: after more than an hour of discussion aye. aye. aye. donnelly? donnelly no. reporter: the audit was approved by a vote of 10-3. the state audit will examine the city s finances over the last three fiscal years. san jose s pension projections and whether or not the city and its retirement boards followed proper financial procedures. no, i think it s fair and time. it s time to do this. is this audit going to interfere? is the purpose to interfere with the reforms that they re putting forth? i m concerned that it is. which is why i voted no. reporter: the committee also voted to give the audit priority status meaning it should be completed by july or august. reporting fr

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