A process is now underway to address a $72 million deficit in this current fiscal year.
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.
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.
PT Staff Released
CAO Administrative Actions Go Into Effect
FY2020-21 Q2 R&E report presented: FY21 $72M GPF deficit, ($44M remaining) Highlights gaps in Non-GPF Funds
President Biden signs American Rescue Plan, a $1.9 trillion economic stimulus bill.