05/23/2024 | Press release | Archived content
FOR IMMEDIATE RELEASE
May 23, 2024
Contact: [email protected]
***News Release***
Mayor Sheng Thao Highlights Priorities for the Midcycle Budget Adjustment
Oakland, CA - Today, Oakland Mayor Sheng Thao outlined her priorities for the midcycle budget adjustments in a press conference at Oakland City Hall. The adjustments will address the City's projected $117 million budget shortfall for this fiscal year and a $175 million shortfall for the next while maintaining essential services and prioritizing public safety, economic development, and community support.
"The financial challenges we face are significant but not insurmountable," said Mayor Thao. "With strategic adjustments and prioritization, we can ensure the continued delivery of essential services, support our most vulnerable communities, and lay the groundwork for a stronger economic future for Oakland."
Like many cities across the state, Oakland is grappling with high interest rates that have slowed building construction and real estate sales, slow return to work, and increased costs. Despite these challenges, Oakland is committed to delivering core city services while maintaining a balanced budget.
Key highlights of the proposed midcycle budget adjustments include:
Priority: A Clean and Safe City
Oakland is turning the corner, and the public safety strategies the City has implemented are paying off. After years of rising crime rates, crime has decreased by more than 30% compared to last year and down 17% compared to the last three years. Oakland must be intentional about maintaining progress during challenging budget times.
The following programs that promote a safe and clean city will also continue:
Priority: Economic Development
Priority: Community Services
Priority: Achieving Efficiency and Reducing Costs:
Some cost reductions are still required to balance the budget. As a result, Mayor Thao has directed the City Administrator to reduce costs by eliminating project carryforwards, centralizing some administrative and financial services, and reducing non-critical or underperforming contracts. Oakland will also implement a targeted hiring freeze of general-purpose fund positions. Vacant positions that are funded outside the general purpose fund will continue hiring.
Priority: Addressing Oakland's Long-Standing Structural Budget Deficit
History has demonstrated that the best strategies to address structural deficits are to:
Thoroughly examining these strategies will take time and considerable effort. Mayor Thao has directed the City Administrator to begin Oakland's biennial budget process in September 2024-three months earlier than normal. Oakland must get a head start and work collaboratively to address its long-standing structural budget deficit.
The proposed midcycle budget adjustments reflect Mayor Thao's commitment to balancing fiscal responsibility with the need to support critical services and community well-being. The Mayor's office will continue working closely with labor partners and community stakeholders to ensure the successful implementation of these budgetary changes.
The Proposed Midcycle Budget Adjustment will be transmitted to the Oakland City Council on Friday, May 24, and be available at oaklandca.gov/budget.
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