FY2020-2021 Deficit

A process is now underway to address a $72 million deficit in this current fiscal year.

Posted: February 19th, 2021 1:11 PM

Last Updated: March 19th, 2021 6:08 PM

How Much Is It?

The COVID-19 pandemic has decimated our national and local economies. In June of 2020 we addressed the deficit in our mid-cycle budget. However, projections now show a growing potential current year deficit of $72M. This is one of  the most serious financial challenges  the City of Oakland has ever faced.

The $72M projection is based on data through December of 2020.

How will we close the gap?

The City has taken swift action to begin to close the initial budget shortfall and projected gap: used 100% of our Rainy Day reserve, reduced police and fire services, released most temporary and part-time workers, implemented a hiring freeze, reduced wages of unrepresented (non-union) employees and suspended payment to the long-term retiree healthcare fund. These actions have helped close about $27M+ of the projected $72M deficit. A deficit of $44M+ remains.

What have we done so far?

  • Administration presents to Council fiscal impact of COVID-19 on City revenues.

  • Council & Mayor passes FY20-21 Midcycle Budget amendments to address $122M revenue shortfall.

  • Oakland receives nearly $37M CARES Act funding. $10M set aside to offset public safety costs.

  • FY20 Q4 R&E report released with initial FY21 Q1 forecast.

  • Administration presents to Finance & Management Committee FY21 $62M GPF deficit

  • Budget begins FY21-23 Biennial Budget Cycle with projected deficit of nearly $150M.

  • January, 2021

    PT Staff Released
    CAO Administrative Actions Go Into Effect

  • FY2020-21 Q2 R&E report presented: FY21 $72M GPF deficit, ($44M remaining) Highlights gaps in Non-GPF Funds

  • March 11, 2021

    President Biden signs American Rescue Plan, a $1.9 trillion economic stimulus bill.