A process is now underway to address a $72 million deficit in this current fiscal year.
Posted: February 19th, 2021 1:11 PM
Last Updated: March 19th, 2021 6:08 PM
The COVID-19 pandemic has decimated our national and local economies. In June of 2020 we addressed the deficit in our mid-cycle budget. However, projections now show a growing potential current year deficit of $72M. This is one of the most serious financial challenges the City of Oakland has ever faced.
The $72M projection is based on data through December of 2020.
The City has taken swift action to begin to close the initial budget shortfall and projected gap: used 100% of our Rainy Day reserve, reduced police and fire services, released most temporary and part-time workers, implemented a hiring freeze, reduced wages of unrepresented (non-union) employees and suspended payment to the long-term retiree healthcare fund. These actions have helped close about $27M+ of the projected $72M deficit. A deficit of $44M+ remains.
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