New Oakland Budget Would Slash Unfilled Jobs to Avoid Public Safety Cuts
- JB Quinnon
- May 6
- 3 min read
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Oakland Interim Mayor Kevin Jenkins has unveiled a sweeping two-year, $4.2 billion proposed budget for the City of Oakland that aims to stabilize municipal finances while prioritizing police and fire services. With a looming $265 million shortfall, the plan relies on deep job cuts, long-term borrowing, and an anticipated $40 million parcel tax—still awaiting voter approval.
Public Safety: A Priority Despite Constraints
The proposal includes funding for six police academies and maintains 678 sworn officers annually, though the actual number of deployable officers remains in the mid-500s due to long-term leaves. The Oakland Police Department (OPD) would also receive $33.6 million in overtime funding in FY2025 and $38.2 million in FY2026—despite concerns over the department consistently exceeding overtime limits.
The fire department remains largely intact, funded for 23 engine companies. However, two companies will be browned out as needed, based on assessments by Fire Chief Damon Covington. Thanks to voter-approved Measure A, a sales tax passed in April, deeper fire service cuts were avoided.
Cutting to Save Core Services
To close the projected gap, over 400 job positions will be cut, with most already vacant or previously frozen. Only about a dozen current employees are at risk of actual layoffs. Notably, this budget avoids reliance on one-time asset sales, which previous administrations used unsustainably.
Still, Jenkins’ plan counts on future money: a $40 million annual parcel tax that hasn’t yet been approved. A vote is planned for June 2026.
“We see from the election that recently happened that residents are demanding that they want to feel safe in the city they love,” Jenkins told reporters.
Social Programs and Infrastructure
Despite austerity measures, the city will continue to fund:
After-school and summer youth programs
Library services
Senior centers (still operating on a reduced schedule)
Community ambassador programs
Infrastructure gets a boost too. Jenkins proposes borrowing $180 million for affordable housing and $50 million per year for street paving.
Federal and Pension Pressures
The city’s budget also assumes continued federal funding—a risky bet amid growing national fiscal uncertainty. Jenkins acknowledged that Oakland lacks the resources to sustain some services without federal aid and is preparing contingency plans.
A more enduring threat lies in CalPERS pension obligations, expected to increase by $68 million by 2031, which will deepen future deficits. Potential strategies include restructuring pension plans for new employees and using debt financing to smooth payment spikes.
Outsourcing and Future Restructuring
Jenkins hinted at the city stepping back from direct service provision in some areas. For instance:
Head Start will be funded for two years, but its federal grant may be handed off to other providers.
Arts grants will continue, but the city may partner with nonprofits instead of managing them in-house.
Political Dynamics and Timeline
The city council has until June 30 to approve a final budget. Jenkins appointed councilmembers Janani Ramachandran and Rowena Brown to guide the process. However, rival budget factions may emerge, particularly around social service spending and proposed cuts.
Oakland’s current fiscal bind traces back in part to 2024, when then-Mayor Sheng Thao’s plan to fund the deficit using anticipated Coliseum sale proceeds fell through. Emergency cuts followed, including:
Freezing two police academies
Temporarily closing firehouses
Laying off staff and trimming contracts with nonprofits (including Meals on Wheels)
Meanwhile, departments like police oversight and ethics commissions continue to sound alarms about being underfunded to the point of dysfunction.
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Sources:
The Oaklandside, “New Oakland budget would slash unfilled jobs to avoid public safety cuts” (May 5, 2025)https://oaklandside.org/2025/05/05/new-oakland-budget-kevin-jenkins-job-cuts-public-safety/
Measure A: Alameda County Registrar of Voters, April 2025 Election Results
Oakland Police Department Staffing Reports
California Public Employees’ Retirement System (CalPERS) financial projections
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