At vague preview of Oakland budget, officials pledge no layoffs or service cuts

"Not too much will change in Oakland's next budget - no layoffs or additional service cuts - city officials said at a photo op Thursday. Details were scant at the East Oakland event, where leaders stood in front of a deteriorating police car and dump truck, but Mayor Barbara Lee and city staff said they'll publish the full fiscal proposal Friday."

"In Oakland, the mayor proposes - and then the City Council passes - two-year budgets, with the last one adopted in 2025. Now, midway through that two-year cycle, the same budgeting process occurs, so the city can make any needed adjustments based on unexpected revenue, losses, or circumstances. The mid-cycle 2026-2027 budget, Lee said, will not count on revenue from Measure E, the proposed parcel tax on the June 2 primary ballot."

"The budget itself is "built on revenue we can reliably project," Lee said. In 2024, Mayor Sheng Thao and the City Council faced blowback for passing a budget that counted on revenue from the sale of the Coliseum. That real estate deal still hasn't materialized."

""It's crystal clear to me that we as a city do lack the resources to provide the basic services that residents need and deserve," Lee said. Measure E is "the difference between maintaining the status quo and actually moving the needle." Previewing the budget proposal set to come out Friday, city officials said it will maintain current spending levels for police staffing, fire services, the Ceasefire violence prevention program, and other public safety programs."

Oakland officials said the next mid-cycle budget will not include layoffs or additional service cuts. The city will publish the full fiscal proposal on Friday after a photo event in East Oakland. Oakland uses two-year budgets, and the mid-cycle 2026–2027 process allows adjustments based on unexpected revenue, losses, or changing circumstances. The mayor’s plan will not count on revenue from Measure E, a proposed parcel tax on the June 2 ballot. A separate Measure E spending plan will be released on Friday, outlining additional services the city could fund if the measure passes. The budget is built on revenue that can be reliably projected, following prior backlash over a budget that depended on a Coliseum sale that did not occur.

Read at The Oaklandside