Oakland has overspent its tax revenues by more than $100 million annually since 2021. The deficit is primarily due to unaffordable labor compensation increases and unsustainable growth in social service and administrative spending since 2018.
Mayor Sheng Thao's proposed budget for fiscal year 2024-25 does not aim to fix the ongoing deficit but instead relies on one-time maneuvers, jeopardizing the city's future by depleting funds from essential services like libraries, parks, and public safety.
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