City Administrator Jestin Johnson Statement on City Budget, 11/19/2024
The following is a statement provided by Oakland City Administrator Jestin Johnson at the beginning of City Council discussion of the first quarter revenues and expenditures report brought to the Council at its 11/19/2024 meeting:
Administrative actions aimed at reducing citywide GPF spending were implemented in March 2024 and remain in effect. A hiring freeze continues for all non-sworn positions funded by the GPF and other funds under fiscal pressure. Additionally, a citywide moratorium on professional training and conferences funded by the GPF continues unless mandated by employment or regulatory requirements. Heightened scrutiny is being applied to all GPF spending. Despite these steps, reductions in the OPD and OFD budget are now unavoidable to effectively address the current year shortfall,” including budget cuts already directed by the City Council when it voted to include a contingency budget in the July 2024 midcycle budget resolution and look forward to any additional cuts as recommended by the council.
To speak to the informational report, an unapproved draft of this report was inadvertently and briefly published on last Friday, containing reference to Chapter 9. The City removed this reference in the approved final draft, after internal analysis concluded that the specific language included in the report was, and remains, premature at this time. However, that analysis does not in any way diminish the urgency of the financial discussion that needs to be held at the City Council.
For the public’s knowledge, all elected and appointed officials receive Municipal Securities training by an external firm to ensure misstatements and omissions in City documents, as well as public statements from city officials can violate anti-fraud provisions. With that said, the legal guidance we received is to ensure that we do not understate or overstate our financial outlook, and it is imperative that we utilize all available resources, to include outside legal counsel, as well as an external financial expert to validate our financials as we move forward with making long-term financial decisions. In addition, we look forward to continuing to work in partnership with the council, staff and our labor partners.
