Bay Area/ Oakland

Oakland City Council Votes in Favor of Embattled Mayor Thao's Budget Plan to Address $177 Million Deficit

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Published on July 03, 2024
Oakland City Council Votes in Favor of Embattled Mayor Thao's Budget Plan to Address $177 Million DeficitSource: City of Oakland

The Oakland City Council, after a series of prolonged deliberations and community input, has approved Mayor Sheng Thao's budget proposal in the hope of remedying the city's $177 million deficit, despite the ongoing controversy at the Mayor's office that got national within the last couple of weeks. The council's 5-3 decision followed a lengthy meeting process that extended past the original July 1 deadline, marked by a marathon eight-hour session last Friday and concluding with a four-hour continuation yesterday, according to KTVU.

The mayor's budget hangs on the crux of the city selling its half of the Coliseum property this summer — a move projected to garner a one-time influx of $63 million. Reid, another councilmember, expressed concerns during the budget talks, "This is a 2.2 billion dollar contract with a 177 million deficit.  The time has not been adequate. We know that it’s not been adequate," as reported by KTVU.

Other councilmembers were less enthusiastic about counting on the Coliseum sale for fiscal stability, voicing their trepidations that the reliance on uncertain revenue could spell disaster. Councilmember Janani Ramachandran was one such skeptic, worried not only over the gamble itself but also about the hurried pace at which amendments were being pushed without proper consideration.

Councilmember Nikki Fortunato Bas, during earlier budget discussions, acknowledged the long-standing nature of the city's fiscal woes, stating, "We are needing to address a structural deficit that is years in the making", as per an NBC Bay Area report. The adopted budget also assumes the retention of 678 officers, positing no cuts to the Oakland Police Department, contingent on the Coliseum's sale.

In the aftermath of the vote, Mayor Thao issued a statement focusing on the responsible management of Oakland's deficit while preserving crucial city functions like public safety and sanitation, a statement that is itself contentious, after Oakland was named the second worst managed city in the country. "This budget achieves that goal. I am grateful to everyone in our City government who participated in developing the solutions reflected in this budget and to the City Council for voting in the best interest of the city and people we serve," she said, according to KTVU.

Meanwhile, opposition lingers in the shadows of this fiscal strategy. The Oakland Police Officers Association, through Vice President Tim Dolan, decried all proposed cuts, which he says "place the public and police at extreme physical danger and jeopardize the future of the city, residents, workers and businesses". Furthermore, the OPOA statement obtained by a PR consultant, Sam Singer, amplified these dire predictions, casting Mayor Thao's reliance on the Coliseum sale as "the false hope" and forecasting bankruptcy and chaos should any of the proposed budget measures fail, as reported by KTVU.

In the broader civic context, Tuesday's session also saw the Oakland City Council lay the groundwork for a recall election against Mayor Sheng Thao. Scheduling it to coincide with the general election on Nov. 5 could potentially save the city an estimated $3.7 million, as opposed to holding a standalone vote.