Oakland Roadmap to
Fiscal Health
Presenter
Bradley Johnson,
Finance Director
What is the Roadmap?
• A multi-year plan to improve the City’s financial position and the quality of the services it provides.
• Complicated strategic projects with aggressive but achievable timelines.
• Transparent work, with regular public updates and recommendations to the Council and Mayor to provide feedback and direction.
Restoring the City’s Fiscal Health
Oakland’s finances have been strained in recent years:
• Pandemic impacts on tax revenue base + high-inflation driving costs • Use of one-time funds to cover ongoing financial problems • Five-year structural budget gap of $130M annually
Recent progress has been real:
• Quick action to close last year’s mid-year budget gap • Passage of a sales tax increase in May
• Adoption of a more structurally balanced budget
But returning to full financial health will take
sustained effort and action over several years
Input Requested on Workplan
4. Multi-year plan to meet voter-adopted service mandates Phased plan to Council by January 2026
Informs biannual budget update (and beyond)
$578,492,297,
68%
$278,494,552,
32% Req'd by MOEs, MOUs, Charter,
Electeds, ISF
Not Req'd by MOEs, MOUs,
Charter, Electeds, ISF
FY 2026-27 GPF Budget as
Baseline Discussion
Additional Amount Needed to be in
Compliance with all MOEs:
$38.8 Million
7 of 21 Measure MOEs Not Met in FY 2026-27
Total Additional Amount Needed: $38,819,611
Measure NN Over 5 Years – New Additions in Each FY
$4,886,375
$6,788,941
$0
$2,828,426
$4,111,722
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31
The Oakland Community Violence And Emergency Response Act Of 2024 The Oakland Community Violence And Emergency Response Act Of 2024 Assumes 7 Police Academies Each Biennial
Other Measures Over 5 Years – New Additions in Each FY
By FY Total Cumulative Add
Starts in 26-27
Risks and Uncertainties
Labor and Benefit Growth
• Most employee agreements up for renegotiation in next year • Salary/benefit increases (esp. healthcare) rising faster than revenues • Modest adjustments could consume major share of MOE resources Federal and State Funding Instability
• Many programs (homelessness, youth, early childhood education) rely on grants
• Policy shifts, cuts, or restrictions could reduce/eliminate funding • City may need to backfill with GPF → delays MOE progress Revenue Performance and Market Conditions
• New revenue measures for MOE carry risks from real estate, inflation, and economy
• Sustained (ongoing) revenues needed; shortfalls could disrupt implementation timeline
Conclusion