On May 1, Oakland’s interim mayor will roll out the city’s proposed 2025–2027 budget, which will look to address a $280 million projected deficit over the next two years. As Oakland navigates this moment of leadership transition, policymakers, administrators, employee unions, and community must work together to find creative ways to reduce spending and grow revenues. Although the structural budget deficit cannot be closed in this budget cycle, the city can pass a balanced budget that commits to sound financial practices, lays the foundation for reforms to Oakland’s governance structure, and builds the city’s capacity to grow economic prosperity for all Oaklanders.

Oakland city leaders must close a $129 million shortfall in this year’s budget and eliminate an additional $280 million deficit projected over the next two years. Now, policymakers, administrators, employee unions, and Oaklanders must work together to reduce spending and grow revenues. To support the process, SPUR provides a primer on the city’s budget-setting process, where its revenue comes from, and how that money is spent.

Oakland is at a pivotal moment as city leaders work to address a significant budget shortfall of $129 million this year, with an additional $280 million projected over the next two years. Solutions to the city’s structural deficit may come from examining how past budget priorities and decisions led to current challenges.

Research shows that low-income families benefit most from the time savings provided by toll roads — but they use these roads less than any other income group. That’s because they are disproportionately burdened by tolls. Toll discount programs like the one just established by the Metropolitan Transportation Commission will reduce the impact of tolls on low-income drivers without undermining tolls’ climate and congestion benefits.