Blog

by Ed Gerber

April 11, 2023

The five-year forecast for the 2023-28 fiscal years has just been released
and for the 2023-24 there is a projected shortfall of $195.5 million for a
General-Purpose Fund budget of $949.9 million. Although it decreases
in future years the deficit continues to pose a significant challenge to
providing necessary city services. Here is a chart for the next 5 years:

Figure 1 – GPF Forecast Revenues, Expenditures & Shortfall

The full report can be found here: REPORT . The report explains in
detail the various city revenues and expenditures which are driving the
shortfall. The effects of Covid are lingering and Oakland will no longer
be receiving the bail out funds provided by the Federal government over
the last 2 years. However, in simple term the city revenue base is
growing slower than the expenditure base.

Similarly, the shortfall for the all funds city budget is also daunting as
shown in the following:

What happens next:

The Five-year Forecast will be heard in the Finance and
Management Committee on April 11 th at 9;30 AM and will then go to
the council.
The Mayor and City Administrator will submit a proposed budget by
May 1 st .
The Council will then deliberate and adopt a budget by June 30 th .
There is a possibility of actions being taken during this fiscal year to
achieve fiscal savings via budget cuts or other actions.
We will be reporting to you as further information becomes
available.