TO: CityCouncilFROM: OaklandBudget AdvisoryCommissionSUBJECT: Recommendationsfor FY24-25Mid-CycleBudgetDATE: June9, 2024 TheOaklandBudget AdvisoryCommission(BAC) haspreparedtheattachedpresentationoutliningour recommendationsinresponsetotheMayor’sproposedFY24-25Mid-CycleBudget. Werecognizethat theCityisstill recoveringfromtheeconomiceffectsof COVID-19whilefederal pandemicrelief fundsarewindingdown.
TheBACoffersthreerecommendations. Wewereheartenedtohear duringtheMay28, 2024Budget TownHall that membersof theCityCouncil FinanceandManagement CommitteeandtheCity’sFinanceDepartment largelyseemalignedwiththeserecommendations.
Recommendation#1
TheCityandCouncil shouldspendthenext year identifyingevidence-basedadjustmentstostructurallybalancethebudget by: 1) examiningbothrevenueandexpenditures; and2) learningfromexperiencesof other similar citiesinCalifornia.
TheMayor intendstospend$1MontheCity’sperformancemanagement andstrategicplanningeffortstocreateastructurallybalancedbudget that isequitableandmitigatesimpact of servicechanges. TheBACrecommendsusingthat investment andtheadditional 4-monthbudgetpreparationtimetoexaminewherecost reductionswouldhavenotominimal serviceimpactandtangiblewaystogrowrevenuestreamsequitably. Oaklandshouldseektolearnfromtheexperiencesof similar citiesinCalifornia.
Recommendation#2
Structural budget adjustmentsshouldcomewithclear communicationof estimatedeffect onpublicpriorities: reducinghomelessnessandimprovingpublicsafety.
Thecurrent ServiceOutput MeasuresandEquitableServiceDeliverySuccessStandardsdepartmentshavefor eachservicedonot provideinsight ontheefficacyof theservices. Werecommendbudget prioritiesmadefor theFY25-27cyclebegroundedinevidenceonoutcomemeasures, asappropriate, toenableaccountabilityinspendingpublicfundswisely.
Recommendation#3
Oaklandshouldbreakitshabit of waivinglimitsintheConsolidatedFiscal Policy, establishmoredisciplineinreplenishingemergencyfunds, andbemoretransparent onthebudget’seffect ontheCity’sfiscal health.
For example, thebudget couldcomewitha“nutritionfacts” label that summarizesthebudget’seffect onthecity’sfiscal health, withclearlylinkedandaccessibledetail.