A process is now underway to address a $62 million deficit in this current fiscal year.
The COVID-19 pandemic has decimated our national and local economies. In June of 2020 we addressed a $122M deficit in our mid-cycle budget and by December, revenue projections based on first quarter data revealed a potential deficit of $62M. This is one of the most serious financial challenges the City of Oakland has ever faced.
The $62M projection is based on data through September of 2020, before the most recent lockdowns.
So far, a hiring freeze, release of temporary employees, unrepresented employee wage reductions and reductions to police and fire overtime have helped close about $26M of the projected $62M deficit. A deficit of $36M remains.
Absent immediate and significant action, the General Purpose Fund will be insolvent (meaning we can't pay our obligations) by the summer and the deficit will continue to grow.
Administration presents to Council fiscal impact of COVID-19 on City revenues.
Council & Mayor passes FY20-21 Midcycle Budget amendments to address $122M revenue shortfall.
Oakland receives nearly $37M CARES Act funding. $10M set aside to offset public safety costs.
FY20 Q4 R&E report released with initial FY21 Q1 forecast.
Administration presents to Finance & Management Committee FY21 $62M GPF deficit
Budget begins FY21-23 Biennial Budget Cycle with projected deficit of nearly $150M.