The COVID-19 pandemic is creating financial challenges for all levels of government, and the City of Oakland is no exception. Numerous revenues will decrease, if they haven't already, as the need for municipal services continues. This downturn occurs at a time when the city was facing very significant financial challenges due to underfunded long-term obligations and the emergence of new challenges such as homelessness.
Oakland’s City Council passed a resolution to submit a parcel tax to voters on the March primary ballot in 2020. The tax is expected to generate more than $20 million dollars per year. No less than 60% of the net proceeds for parks, landscape maintenance and recreational services, and 30% percent for services to address homelessness.
(This is a post in our Budget Bits series, following Oakland’s mid-cycle budget policy and process. Read our previous updates: post one, two, three, and four.)
On June 24th, the City Council unanimously adopted its two-year, $3.29 billion budget. (The full budget document can be read here.) The final adoption reflected a combination of the Mayor’s Proposed Budget and augmented by $44.4 million in amendments proposed in the “Oakland Together Proposal,” which was a combination of amendments by numerous council Members. The Mayor’s Proposed Budget included the funding needed to continue many necessary city services and required funding for continuing obligations such as bond payments, retirement and healthcare. The Council amendments added increased services in a number of critical areas.
Make Oakland Better Now! believes that many of the service issues presented in both the Mayor’s proposed budget and in the adopted budget are critical. However, in the Adopted Budget, the Council took little action to significantly pay down our City’s long-term unfunded liabilities of $2.7 billion nor did it significantly increase the protections in the Rainy-Day Fund. Oakland also has unfunded Capital projects of $2 billion.
We are now in longest positive economic surge since WWII. However, there have been numerous indications that economic conditions may change during the period of this two-year budget. How will Oakland respond? (more…)
Make Oakland Better's first Budget Bits report looks at the beginning of the budget process, the challenges, priorities, and decisions being made as Mayor Libby Schaaf, City Administrator, and City Council draft Oakland's 2017-2019 budget.
The city auditor’s report on Non-Interference in Administrative Affairs Performance Audit found that five council members or their aides interfered in administrative affairs and violated section 218 of the Oakland City Charter, which states that council members or their aides cannot interfere with daily activities such as “contracting, hiring, appointing or firing City employees, or giving orders to City employees who are under the City Administrator’s supervision.” City Auditor Courtney Ruby called this provision “the underpinning of an ethical structure” that was created to protect citizens and businesses of Oakland alike. According to the report this ethical structure is being threatened, something that is troubling at a time when Oakland is working to earn the trust of its citizens.
The audit, conducted from 2009 through 2012, analyzed 27 anonymous reports, 67 hotline tips, 40 individual interviews, tens of thousands of emails and all applicable phone calls. The audit found that the administrative interferences originated from two council members’ offices and that those two council members “violated the law by exerting inappropriate influence in City contracting and operations.” The council members will remain on the Oakland City Council, but if they are found guilty of a misdemeanor crime for administrative interference they will be removed.