Oakland faces nearly $30 million budget shortfall

OAKLAND, Calif. (KGO) -- A new report finds the city of Oakland now faces a nearly $30 million budget shortfall.

It comes as city leaders prepare a new operating budget expected to top $500 million.

Our media partners at The Oakland Tribune report the shortfall threatens to derail efforts to increase police staffing.

It also complicates negotiations with five city unions whose contracts expire in June.

That's the same month the new budget must be finalized.

The economic boom has brought new residents and businesses to Oakland, but has not yet turned around the city's finances.