"The city administrator has conformed, verbally, in writing, many times, that we are in the contingency budget and cuts are already being made," says Oakland City Council Member Janani Ramachandran, who represents District 4.
Ramachandran says city council is now trying to figure out what cuts are being made and how they will be prioritized.
On Friday, Oakland's finance department released an informational report with updates to the current budget. It shows an operating deficit of almost $80 million dollars.
"We don't know what's going to happen first. I hope that it is not going to be a brown-out of five fire stations and a complete slashing of police officers to 600. But that's on the table because that is what council passed," says Ramachandran.
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The current year's budget was built around the massive sale of the Oakland coliseum. From that, $58 million was to be paid to the city in three installments between September, 2024, and February, 2025. An additional $42 million paid by the summer.
But changes to the purchase sales agreement now means the city will get one lump payment of $95 million in May.
"That's $48 million dollars that we don't have in the bank to be able to use for operating expenses," explains Ramachandran.
The City of Oakland released a document on Friday which states, "Budget amendments were always a likely necessity regardless of whether the parties amended the Coliseum sale contract or not."
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Friday's finance report also states that Oakland expenses are higher and revenues lower that initially forecasted. As a result, report states: "Oakland's fiscal health is at significant risk."
Council member Treva Reid say Mayor Thao needs to be more transparent about the cuts.
"As the mayor will share, she is the CEO. And she continues to remind us that all of those department leaders and department directors fall under her control. She has the ability to leverage her role of leadership and authority to determine how we receive and what we receive from those leaders," says Reid.
Reid and Ramachandran both voted against tying the coliseum sale to the current budget.
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City council can reopen open the budget and make changes.
Oakland city administrator's office did not return request for comment.
The Oakland Police Officers Association issued a statement saying the city is, "On the brink of insolvency and no one at city hall is competent to manage its finances."
"Mayor Sheng Thao today essentially admitted her Coliseum 'deal' would not solve Oakland's financial catastrophe and now claims a $120 million deficit is coming. We know that figure is also false because the city today cancelled its finance committee meeting because, as Councilman Jenkins stated the City Administrator's office doesn't have figures available," said Union President Sergeant Huy Nguyen in the statement.
The next finance meeting is scheduled for October 22.