Redevelopment Ends – City cuts millions from budget

The Oakland City Council voted to support most of the cuts proposed by Mayor Quan and City Administrator Deanna Santana to balance the City budget after the elimination of the Oakland Redevelopment Agency (RDA) as required by state law. Overall about $8million was cut from the final 5 months of this years’ budget and $20 million was cut from the 2012-23 fiscal year.

The Revised budget maintains funding for sworn police officers and firefighters. Funding was also preserved for Children’s Fairyland and the Oakland Zoo despite proposed cuts. The number of jobs that will be cut has been declining over the last week or two as City staff and City Council worked out details. While some work rule seniority issues may still affect the particular positions eliminated the number of lost jobs will likely be close to 80.

Where will Oakland look to save money?

The Oakland Redevelopment Agency will be eliminated as required by state law on February 1. The loss of that revenue means the city has to cut about $20 million from its budget every year. The money has been paying for nearly 160 employees including more than 80 people in the economic development department, 15 assistant city attorneys and half of the salary of the Mayor and City Council members. The money also paid the salaries of 17 police officers but they can’t be let go due to their employment contract. So where will the city look to save money?

The Mayor and City Administrator have submitted a plan to the City Council which they will review at a special City Council at 5:30 tonight at City Hall. The plan involves some reorganization and does eliminate 105 positions. The biggest losses are among the former Economic Development staff where a total of 42 positions are eliminated. The cut positions include some non- sworn police staff and four of the nine Neighborhood Service Coordinators. Public Works loses 23 positions and Parks & Recreation lose another nearly seven people.

City Council will make final budget decisions at their meeting next Tuesday night, January 31, at 5:30 pm.

City of Oakland issues nearly 2,500 layoff notices

Layoff notices were issued to 1,464 full time City employees and more than 1,000 part time City employees today. The city has nearly 5,100 employees total. Layoffs will not impact sworn police officers or fire firefighters. Both groups are protected from job cuts by their contracts. The cutbacks result from the elimination of the Oakland Redevelopment Agency (RDA) which is required by state law to cease operation by February 1st, only two weeks from today.

 The City uses RDA money to pay for nearly 160 employees. That includes using RDA funds to pay half the salary of the Mayor and all Council Members. So when the RDA money goes away in two weeks the City has to adjust its budget. But that does not mean just because a position is currently funded with RDA money the person in that job will lose their job.

The decision of what salaries to cut and what jobs to eliminate will be decided by City Administrator Deanna Santana in consultation with Mayor Jean Quan and the City Council. The plan is expected to be presented to the City Council by next Monday, January 23. The Council has scheduled special meetings on Wednesday January 25^th and Tuesday January 31^st to decide where the cuts should be made.

Help the City of Oakland wrap up Redevelopment

The Oakland City Council voted unanimously yesterday to become the Successor Agency for the Oakland Redevelopment Agency (RDA). The RDA is required by statute to terminate all operations by February 1, 2012. As the Successor Agency the City will have the responsibility of paying off the debts of the RDA and selling its assets.

The same law that ended redevelopment agency’s in California also created a seven person Oversight Board to monitor how the debts, assets and obligations of the RDA’s are closed out. The Oversight Board for the Oakland RDA will review the actions the City of Oakland takes as the Successor Agency to the Oakland RDA. The seven members are appointed by the following officials:

County Board of Supervisors – 2 members

Mayor - 2 members (one a former RDA employee)

County Superintendent of Education – 1 member

Chancellor of CA Community Colleges – 1 member

Largest special district taxing agency – 1 member

The Oakland Metropolitan Chamber of Commerce would like to recommend to these officials qualified people to serve on the Oversight Board. Please let us know if you would be interested in serving.