Oakland warned by finance department to declare fiscal emergency or balance budget
Oakland will need to look at making some severe cuts to balance its budget. The finance department sounded the alarm on Friday, saying to balance the budget now or declare a fiscal emergency.
The city said it is already spending money from its emergency reserves.
Oakland is facing a deficit of $93 million for this fiscal year that ends in June 2025. Since public safety takes up a majority of the budget, experts believe any cuts will likely include police and fire.
"To cut an already shortened police department makes absolutely no sense, and to cut from the fire department makes absolutely no sense," said Oakland resident Tahira Hodge.
Hodge and her family evacuated from their home last month in the Keller Fire. She credited the fire department for saving her neighborhood.
"I looked out, and I saw all the smoke and there was some fire in the trees. I was like, 'Oh my gosh,'" said Hodge.
In a contingency budget plan released in June, the city talked about reducing the police force down to around 600 officers. The city has roughly 670 officers.
Oakland had 613 officers back in 2013. Six hundred would make it the smallest police force in years.
The contingency plan also recommended browning out a handful of fire stations, freezing positions across city departments and reducing hours at recreation centers, libraries, and senior centers.
"My priority is public safety and a clean city. I need the police and the fire department to respond," said Oakland Councilman Noel Gallo, who represents District 5.
Gallo and others had warned Mayor Sheng Thao and her allies on the city council about this financial mess back in June. The current budget depends on selling the Oakland Coliseum. But the city hasn't received money from the deal.
"We're going to have to negotiate with the unions. We've got to make some reductions. We may have to lay some people off," warned Gallo.
He said cuts alone won't be enough, they need concessions from the unions.
"Crime numbers were down, and so that restores positivity for people to want to come and shop in Oakland, do business in Oakland," said downtown business owner Alicia Kidd of Coco Noir Wine Shop and Bar.
Many business owners and residents worried any cuts to vital services will derail progress made on public safety.
"Having safety is number one. And you have to because if not, businesses will close," said Kidd.
"We need the firemen and we need the cops because there's too much crime in Oakland," said Oakland resident Morde Ehrenfeld.
Mayor Thao has been recalled and will be leaving office once the election results are certified on Dec. 5. The city council will meet on Tuesday to talk about how to solve the budget crisis.
Aside from this fiscal year, city officials estimated Oakland has a $120 million structural deficit each year from 2025 to 2027.
