Neglected Solutions

We cannot tax our way to a shared vision of progress when those taxes disproportionately harm working-class communities and vanish into a system devoid of accountability. We need sustainable solutions that uplift all of Oakland, not regressive taxes like Measure E.

While the core structural deficit hovers around $120 million annually, several compounding factors actively threaten to widen that gap in 2026 and beyond:

• Soaring Pension Obligations: Current required payments to CalPERS for retiree pension benefits are one of the primary forces driving the budget out of structural balance. These costs are projected to increase by an additional $68 million between 2025 and 2031.

• Federal Funding Cuts (2026): Oakland faces an approximate $25 million cut in federal grant funding for the current fiscal year (a 34% decrease), heavily impacting restricted funds normally used for housing, homelessness, and public safety.

• Restricted vs. General Funds: Nearly 60% of Oakland’s ~$2.1 billion annual revenue is legally restricted to specific programs. The structural deficit almost entirely plagues the General Purpose Fund (roughly $800 million), meaning the shortfall represents a massive percentage of the city's flexible spending.

To offset these structural imbalances, the city's recent budgets have relied on eliminating hundreds of vacant and filled positions, reducing police and fire academies, shrinking community grants, and implementing new revenue streams like Measure A's sales tax increase and Measure T's progressive business tax.

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