oakland’s roadmap
oakland’s
roadmap to a
to a sustainable budget
sustainable
budget
The 2024-2025 midcycle budget included painful cuts to vital services, including civilian crisis response teams,
neighborhood crime prevention and a hiring freeze. While many departments are now facing even steeper
reductions, police and fire are expected to overspend by over $93 million. While most departments’ budgets
could be cut by a whopping 83%, the Fire Department faces an 18% reduction ($36 million) and the Police
Department – which consistently overspends by tens of millions and is responsible for 56% of the budget
deficit – is only facing reductions of under 5% ($16 million).
The 2024-2025 midcycle budget included painful cuts to vital services, including civilian crisis response teams, neighborhood crime prevention and a hiring freeze. While many departments are now facing even steeper reductions, police and fire are expected to overspend by over $93 million. While most departments’ budgets could be cut by a whopping 83%, the Fire Department faces an 18% reduction ($36 million) and the Police Department – which consistently overspends
by tens of millions and is responsible for 56% of the budget deficit – is only facing reductions of under 5% ($16 million).
As the city faces down a projected $120 million deficit next year, calls for
unrealistic and financially dangerous budget gimmicks are growing. This
roadmap outlines $142-$204 million in realistic, actionable steps to close
the gap and get Oakland’s budget back on track.
grow the tax base for public
safety & promote efficiency and
accountability in the oakland
police department
Fund Public Safety Improvements through Measures NN and MM
In November, Oakland voters approved two measures that boost funding for public
safety services and provide additional resources for fire and police — bringing in $17
million in new revenues for the fire department, increased police staffing and
violence prevention, and nearly $3 million in new funding for fire services and a new
wildfire prevention zone.
Initiate a Process to Identify Revenue Reforms to Support Public Safety Expenditures
The city needs to begin to identify revenue reforms to provide consistent growth for
the general fund. Bringing the city’s sales tax in line with neighboring cities would
boost revenues by $20 million. And bringing the city’s business tax in line with
neighboring agencies would increase revenues and improve tax compliance.
Implement Recommendations of the Reimagining Public Safety Taskforce & Continue Investments in Ceasefire
In 2021, Oakland’s Reimagining Public Safety Taskforce made over 100 recommendations
to address root causes of crime, rebuild community trust with OPD, and refocus police
resources on violent crime. Changes include shifting internal investigations to civilian
staff, creating civilian response teams for nonviolent calls, and increasing use of proven
violence reduction strategies like Ceasefire. Despite the potential for $19 million in cost
savings annually, most of the reforms weren’t implemented.
Stay Within Budget for Police Overtime
Between 2021 and 2024, OPD’s overtime budget increased from $15 million to $44
million — and the department is still expected to spend $24 to $52 million over their
allotted budget. Overspending in the police department accounts for 56% of the
projected citywide deficit in fiscal year 2024-2025. Audits conducted by the City
Auditor and Office of the Inspector General over the past decade consistently found
that OPD lacks sufficient internal controls to ensure that all overtime spending is
necessary. Despite 20+ recommendations and a new (yet vacant) fiscal management
role, the department has not fixed the system.
restore enforcement of the city’s
tax code, revenue collections,
and traffic laws
Staff Up Parking Enforcement & Revenue Generating Positions
Between 2019 and 2023, parking enforcement declined by 33% – with resident
safety citations like enforcement of handicap parking fraud (down 99%) or
parking in bike lanes (down 70%) bearing the brunt. With a 40% vacancy rate in
the department, millions are lost in revenues – as each parking control technician
collects approximately $500,000 annually. Collection rates for fines, penalties
and parking meters are down, leaving over $8 million on the table in 2023-2024.
Improve Business Tax Collection Process and Compliance
Oakland’s new business tax was set to generate about $21 million, but fell
short by millions last fiscal year due to widespread tax delinquencies totaling
over $16 million. The city’s revenue department used to have streamlined,
thorough processes for collections and audits, but these practices have eroded.
Restoring adequate enforcement could generate between $3 to $11 million in
ongoing revenue, and clearing the tax backlog could generate up to $34 million.
As the city faces down a projected
$120 million deficit next year, calls
for unrealistic and financially
dangerous budget gimmicks are growing. This roadmap outlines $142-$204 million in realistic, actionable steps to close the gap and get Oakland’s budget back on track.
grow the tax base for
public safety & promote
efficiency and accountability
in the oakland police department
Fund Public Safety Improvements through Measures NN and MM
In November, Oakland voters approved two measures that boost funding for public safety services and provide additional resources for fire and police — bringing in $17 million in new revenues for the fire department, increased police staffing and violence prevention, and nearly $3 million in new funding for fire services and a new wildfire prevention zone.
Initiate a Process to Identify Revenue Reforms to Support Public Safety Expenditures
The city needs to begin to identify revenue reforms to provide consistent growth for the general fund. Bringing the city’s sales tax in line with neighboring cities would boost revenues by $20 million. And bringing the city’s business tax in line with neighboring agencies would increase revenues and improve tax compliance.
Implement Recommendations of the Reimagining Public Safety Taskforce & Continue Investments in Ceasefire
In 2021, Oakland’s Reimagining Public Safety Taskforce made over 100 recommendations to address root causes of crime, rebuild community trust with OPD, and refocus police resources on violent crime. Changes include shifting internal investigations to civilian staff, creating civilian response teams for nonviolent calls, and increasing use of proven violence reduction strategies like Ceasefire. Despite the potential for $19 million in cost savings annually, most of the reforms weren’t implemented.
Stay Within Budget for Police Overtime
Between 2021 and 2024, OPD’s overtime budget increased from $15 million to $44 million — and the department is still expected to spend $24 to $52 million over their allotted budget. Overspending in the police department accounts for 56% of the projected citywide deficit in fiscal year 2024-2025. Audits conducted by the City Auditor and Office of the Inspector General over the past decade consistently found that OPD lacks sufficient internal controls to ensure that all overtime spending is necessary. Despite 20+ recommendations and a new (yet vacant) fiscal management role, the department has not fixed the system.
restore enforcement
of the city’s tax code,
revenue collections,
and traffic laws
restore enforcement of the city’s
tax code, revenue collections,
and traffic laws
Staff Up Parking Enforcement & Revenue Generating Positions
Between 2019 and 2023, parking enforcement declined by 33% – with resident
safety citations like enforcement of handicap parking fraud (down 99%) or parking in bike lanes (down 70%) bearing the brunt. With a 40% vacancy rate in the department, millions are lost in revenues – as each parking control technician collects approximately $500,000 annually. Collection rates for fines, penalties and parking meters are down, leaving over $8 million on the table in 2023-2024.
Improve Business Tax Collection Process and Compliance
Oakland’s new business tax was set to generate about $21 million, but fell short by millions last fiscal year due to widespread tax delinquencies totaling over $16 million. The city’s revenue department used to have streamlined, thorough processes for collections and audits, but these practices have eroded. Restoring adequate enforcement could generate between $3 to $11 million in ongoing revenue, and clearing the tax backlog could generate up to $34 million.
strengthen fiscal policies
for oakland’s future
Bolster Reserves to Invest in Oakland’s Future
Over the last decade, Oakland’s revenues surged as property values rose and the Bay Area economy
boomed, with Real Estate Transfer Taxes (RETT) jumping from $31 million after the Great Recession to
$138 million in 2021-2022, becoming a primary revenue source.
Due to the unpredictable nature of transfer taxes, the city’s policy is to use only a portion of them for
ongoing expenses, dedicating the rest to reserves or debt repayment. But the city has rarely followed
this policy — misusing over $133 million in transfer tax revenues to cover short-term budget gaps over
the last decade. If the city followed standard policies, the reserves could have been $66 million higher
— enough to close the operating deficit.
strengthen
fiscal policies
for oakland’s future
Bolster Reserves to Invest in Oakland’s Future
Over the last decade, Oakland’s revenues surged as property values rose and the Bay Area economy boomed, with Real Estate Transfer Taxes (RETT) jumping from $31 million after the Great Recession to $138 million in 2021-2022, becoming a primary revenue source.
Due to the unpredictable nature of transfer taxes, the city’s policy is to use only a portion of them for ongoing expenses, dedicating the rest to reserves or debt repayment. But the city has rarely followed this policy — misusing over $133 million in transfer tax revenues to cover short-term budget gaps over the last decade. If the city followed standard policies, the reserves could have been $66 million higher
— enough to close the operating deficit.
realistic and streamlined budget
Create a Realistic Staffing Budget and Reduce Non-Service Spending
In the 2022-2023 midcycle budget, 288 new full-time positions were added,
even though the city relied on one-time federal stimulus dollars to balance its
budget. This budget led to record job vacancies — a 183% increase in vacant
positions since 2012. While 650 vacant, fully funded positions still remain in the
budget, the administration has identified more than $7 million in vacant
positions that could be removed and up to $8 million in annual reductions to
operations and management spending (which doubled between 2012 and 2024).
Controlling Growth in Executive Compensation
Recent labor contracts have made progress in keeping up with inflation and
making Oakland, as an employer, more competitive with other public agencies.
However, 66 non-union executive managers, many of whom already earned over
$200k in wages annually, recently received nearly $8 million in wage increases.
This represents an average compensation increase of $116,000 for each
unrepresented employee over three years — each increase exceeding the entire
average salary of a full-time civilian employee.
restore enforcement of the city’s
tax code, revenue collections,
and traffic laws
The Coliseum Site: An Opportunity for a Boom Loop
In late 2024, Oakland finalized a sale agreement with the African American
Sports and Entertainment Group for the Coliseum site — one of the largest
underdeveloped, transit-serviced areas in a major urban center in California.
While the site is currently tax-exempt, bringing in little revenue for the city, new
developments are projected to increase city tax revenues by at least $4.5 million,
boosting city funds while creating tens of thousands of jobs.
Apply for Funding to Staff Up Oakland
Currently, over 650 fully-funded positions are vacant, including librarians, head
start workers, street maintenance workers, and planning, permitting, and code
inspection workers. The city could join other local agencies in seeking state and
federal funding for workforce development programs to hire residents, improve
public services and close the deficit. Other public agencies and cities have
received grants ranging from $4 to $13 million to create IT apprenticeships, hire
early childcare educators, community health workers and EMTs/paramedics.
realistic and
streamlined
budget
Create a Realistic Staffing Budget and Reduce Non-Service Spending
In the 2022-2023 midcycle budget, 288 new full-time positions were added, even though the city relied on one-time federal stimulus dollars to balance its budget. This budget led to record job vacancies — a 183% increase in vacant positions since 2012. While 650 vacant, fully funded positions still remain in the budget, the administration has identified more than $7 million in vacant positions that could be removed and up to $8 million in annual reductions to operations and management spending (which doubled between 2012 and 2024).
Controlling Growth in Executive Compensation
Recent labor contracts have made progress in keeping up with inflation and making Oakland, as an employer, more competitive with other public agencies. However, 66 non-union executive managers, many of whom already earned over $200k in wages annually, recently received nearly $8 million in wage increases. This represents an average compensation increase of $116,000 for each unrepresented employee over three years — each increase exceeding the entire average salary of a full-time civilian employee.
restore enforcement
of the city’s tax code,
revenue collections,
and traffic laws
The Coliseum Site: An Opportunity for a Boom Loop
In late 2024, Oakland finalized a sale agreement with the African American Sports and Entertainment Group for the Coliseum site — one of the largest underdeveloped, transit-serviced areas in a major urban center in California. While the site is currently tax-exempt, bringing in little revenue for the city, new developments are projected to increase city tax revenues by at least $4.5 million, boosting city funds while creating tens of thousands of jobs.
Apply for Funding to Staff Up Oakland
Currently, over 650 fully-funded positions are vacant, including librarians, head start workers, street maintenance workers, and planning, permitting, and code
inspection workers. The city could join other local agencies in seeking state and federal funding for workforce development programs to hire residents, improve public services and close the deficit. Other public agencies and cities have received grants ranging from $4 to $13 million to create IT apprenticeships, hire
early childcare educators, community health workers and EMTs/paramedics.
efficiency &
accountability
enforce tax &
revenue collections
streamlined
budget
economic
development
efficiency & accountability
enforce tax
& revenue
collections
streamlined
budget
economic
development
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action to ensure we cut waste, not services.
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on how you can take action to
ensure we cut waste, not services.