The finances in San Jose may be tight, and they may be in a state of emergency, but a formal declaration of emergency has been delayed until at least August.

Last month, Mayor Chuck Reed was plowing ahead with his pension and budget reforms, and was willing to bring the issue to the public to vote. However, progress with negotiations between the city and its unions gave the city more breathing room.

While preparations will continue for a formal declaration of emergency and ballot measure, the bargaining table is now going to see most of the drama play out over the next weeks and months. According to the Mayor, the city has until December to vote to put an initiative on a March 2012 ballot.

From the San Jose Mercury News:

San Jose Mayor Chuck Reed, who planned to seek the City Council’s blessing Friday to declare a fiscal emergency and agree on language for a fall ballot measure aimed at fiscal and pension reforms, announced Monday that he is delaying action on both until at least early August.

He also said he will hold off on a ballot election until at least March 2012.

The mayor’s decision came after the city’s police and firefighter unions on Monday agreed to a framework for negotiations through Oct. 31 on retirement reform and related ballot measures.

Read the full article here.