Our city’s budget is a reflection of our values, and what we prioritize as a community. As Council President, my budget values are rooted in ensuring community safety, collecting every dollar in revenue that’s owed– especially by large corporations, transparency in making fiscally sound decisions based on real financial data, and diligent conversations with our workforce and constituents.
At our October 22nd Finance Committee meeting, we received an initial report on the last fiscal year, an indicator of how much money we’re bringing in and spending as a city. The projected deficit for the fiscal year that ended in June ranges between approximately $15M to $70M, which includes money the City had in the bank at the beginning of the fiscal year, and funds committed but not yet spent.
The budget resolution led by the Council President’s Budget Team and passed by a majority of the City Council this summer bought us precious time and resources, saving lives and homes especially during this critical fire season. The budget resolution clearly states that even under a contingency budget, the City Administrator must return to Council with a plan to rebalance the City’s budget, and obtain approval before cutting major programs, department allocations, layoffs, or substantially changing levels of service. Cost-saving measures such as eliminating non-essential travel and prioritizing any new hires are already in place, but not yet the contingency budget proposed reductions to police and fire. At the November 19th Finance meeting, we will dig into the details of proposed budget amendments from the Administration based on real financial data, after receiving the 1st quarter financial report for this fiscal year.
While our financial situation is serious, the Council can and will pursue more due diligence and concrete solutions to effectively balance our budget. These options include deciding how much of the short-term Coliseum land sale revenues to include this fiscal year of the expected $110 million; staffing up and ensuring revenue collection in parking, real estate transfer taxes, and business license taxes; and sustaining our community safety and fire response progress over the past year while also reigning in overspending in police overtime.
Again, these are decisions that the Finance Committee and City Council will take up on November 19th in order to rebalance our current budget at a subsequent City Council meeting. We’re under no illusions that the choices before us are easy. Continuing to address the decades-long structural deficit will take all of us working together. The Administration has begun a strategic planning process to address our structural deficit in the next biennial budget. We invite Oaklanders, including our city’s workforce, to dig into the budget reports, ask key questions, and engage in the deliberative process with the Administration and City Council. Let’s join together with facts over fear and advance a balanced budget that protects critical city services and achieves a cleaner and safer Oakland.
