Council members voted 8-3 to approve the funds, with Council members Ken Yeager, Chuck Reed and Dave Cortese voting no. The councilmen argued that the request comes at a time when the city is already faced with tough choices in cutting services, and they should prioritize according to importance.

Yeager is running for a seat on the county board of supervisors; Reed and Cortese are mayoral candidates.

"You cut library hours, park maintenance and road repairs. How does this compare with the other expenditures?" asked Yeager, referring to the council's approval of the $4 million.

The cost for the 2005 race was $1.3 million. The race organizers are reimbursing the city for $700,000. The additional $600,000, which includes services from the departments of public works, transportation, police and fire, will not be reimbursed by the organizers under previous agreement, according to Ed Shikada, San Jose deputy city manager.

Yeager, along with Reed, Cortese and Councilwoman Nancy Pyle, said more time should have be spent discussing the issue before it came to a vote on Jan. 10. They argued that they didn't have sufficient time to review the request, with Cortese asking for a two-week continuance before it came to a vote. The motion was defeated.

Yeager acknowledged that last year's race was good for the city but said, "I worry that rushing into this would erase good feelings people have about this event."

Reed concurred and added, "The Grand Prix was a great event. It's great to have a party, but you have to pay the rent. I'm sorry. We can't afford this event."

Several residents voiced concerns about needed funds being used for a downtown auto race in a time when budget cutbacks have become the norm.

"The citizenry comes in all the time begging for parks, services and protection," said Tessa Woodmansee, who lives in the Rose Garden. "Every time, our elected officials lamented the empty purse of the general fund."

Ann Webb, who has lived in San Jose for 27 years, suggested that funding be found elsewhere.

"It was a great event, but you can't afford that kind of money," she said. "Let this money be found in private sponsors."

However, San Jose director of economic development Paul Krutko said the economic impact of last year's event was positive. He pointed to the 150,000 spectators who attended the three-day race and brought an estimated $41 million into the area's economy.