FY 2023-25
Biennial Budget
Special City
Council Meeting
Nicolas Heidorn, Executive Director
Suzanne Doran, Senior Analyst/Project Lead
Democracy Dollars
Mission
Statement
The Public Ethics Commission (PEC) ensures compliance with government ethics, campaign finance, transparency, and lobbyist registration laws intended to promote fairness, openness, honesty, and integrity in Oakland City government.
Service Inventory Summary
Lead/Collaborate – Lead by
example and facilitate City
policy, management, and
technology changes to further
PEC goals.
Educate/Engage– Provide
education, advice, technical
assistance, mediations, and
legal opinions to promote
awareness and understanding
of campaign finance, ethics,
and transparency laws.
Disclose/Illuminate– Facilitate
accurate and accessible
disclosure of government
integrity data, including campaign
finance, conflicts of interest/gifts,
and lobbying, which help detect
noncompliance.
Detect/Deter– Conduct
investigations and audits to
monitor compliance with the
laws within the Commission’s
jurisdiction.
Prosecute– Enforce violations
of the laws within the
Commission’s jurisdiction
through administrative or civil
remedies.
PEC Impact
Since the charter amendments increasing PEC independence and staff in 2014, the Commission has greatly expanded its impact.
Over 1,975 requests for
information, advice or
technical assistance
More than 6,000
training participants
reached
67 public records
request mediations
completed
Caseload 71
complaints and
proactive cases
212 cases resolved
$460,000+ in
monetary penalties
imposed for violations
5,000+ campaign and
lobbyist disclosure
reports reviewed
25 disclosure datasets
published online
10 interactive disclosure
data visualizations and
tool published
Education and
Advice
0 100
200
300
400
500
600
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Requests for Assistance
by Client
Boards and Commissions Campaign filers City officials and staff Contractors General public Lobbyists Other Press
Enforcement
Cases
0 10
20 30
40 50
60 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Enforcement Caseload Remains High
PEC-initiated Complaint
Bringing Equity to Campaign
Finance:
Oakland Fair Elections Act /
Measure W (2022) – 74% Yes
Measure W Overview
• Every registered voter receives 4 x $25 voucher ($100 total) • Applies to:
- Mayor
- City Council
- City Attorney
- City Auditor
- School Board
Measure W Budgetary Overview
• Requires, for FY 2023-2025:
- “Sufficient funding” to administer, including at minimum:
- 4 FTE in program staff
- $4,000,000 for candidate vouchers
- $350,000 in overhead
- $700,000 in one-time startup costs
• Permits the City to reduce these budget set-asides if the City faces an “extreme fiscal necessity”
Current Organizational Chart
Executive Director
Nicolas Heidorn
Enforcement Chief
Simon Russell
Ethics Investigator
HIRING IN PROCESS
Ethics Analyst III
Disclosure & Engagement
Suzanne Doran
Ethics Analyst I
Jelani Killings
Administrative Analyst I
Ana Lara-Franco
Administrative Assistant II
Chris Gonzales
Organizational Chart
if Measure W were fully implemented
Executive Director
Nicolas Heidorn
Enforcement Chief
Simon Russell
Ethics Investigator
HIRING IN PROCESS
NEW
Ethics Investigator
Ethics Analyst III
Disclosure & Engagement
Suzanne Doran
Ethics Analyst I
Jelani Killings
Administrative Analyst I
Ana Lara-Franco
NEW
Program Manager
Democracy Dollars
NEW
Ethics Analyst II Community
Engagement
NEW
Ethics Analyst II
Compliance & Training
Administrative Assistant II
Chris Gonzales
NEW
Administrative Assistant I
FY 2023-25
Proposed Biennial Budget
Overview – Overall Proposed Budget
• Proposed Expenditures:
• Maintains existing staffing levels (7 FTE)
Overview – Non-Measure W Significant Changes
• New Revenue: Adds annual lobbyist registration fee -
$70,000
• Savings: Cuts Limited Public Financing (LPF) - ($155,000) (program repealed by Measure W)
• New Spending:Adds one-time funds for election-year
candidate education and engagement - $50,000
Overview – Measure WSignificant Changes
• Postpones public financing implementation to 2026
• Eliminates funding for candidate vouchers and program staffing, and significantly reduces startup and O&M funds • Allocates $525,000 in startup funding, including to
develop the database to distribute, process, and track
vouchers
Measure W – Funding Changes from Baseline
Measure W Baseline Proposed Budget Reduction
Candidate Funds
(Vouchers) $ 4,000,000.00 $ - $ (4,000,000.00)
Staff Positions (min. 4
FTE) $ 2,550,000.00 $ - $ (2,550,000.00)
Startup & O&M Costs $ 1,450,000.00 $ 525,000.00 $ (925,000.00) Total $ 8,000,000.00 $ 525,000.00 $ (7,475,000.00) Measure W Funding Cuts – Service Impact & Equity
Considerations
• Service Impact:
• No public financing available for 2024 election
• Reduced candidate fundraising ability for some candidates due to decreased contribution limits ($900 to $600) without offsetting increase in public financing
• Equity Considerations:
• Candidates: opportunity loss particularly for candidates lacking connections to personal wealth or wealthy donor networks due to historical and ongoing effects ofracism
• Residents: opportunity loss particularly for residents from low-income communities of color the program is designed to draw into greater civic engagement.
Measure W – Cost for Scaled Down Pilot
• PEC directed staff to explore a limited pilot for council district elections-only in 2024 at its May 2023 meeting • Districts-only pilot would reduce voucher, mailing, outreach, and some staff costs • PEC staff estimates a $3.2 million pilot cost for FY2023-2025 - This represents a $2.7 million increase from the
$525,000 already in the Proposed Budget
Enforcement
Outcomes
$365,600
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
2014 2015 2016 2017 2018 2019 2020 2021 2022
Commission Issues Its Highest Enforcement Fine Ever in 2021 Measure W – Districts Only Pilot
PEC Staff Cost Estimate
Measure W Baseline Districts Pilot
Candidate Funds (Vouchers) $ 4,000,000 $ 1,100,000 Staff Positions $ 2,550,000 $ 1,425,000
Startup & O&M Costs $ 1,450,000 $ 675,000
Total $ 8,000,000 $ 3,200,000 Questions/Discussion