By Bob Walsh
The city of Oakland, CA. is in deep shit. They are on
the verge of insolvency. They are both fiscally and morally bankrupt. A
financial report was publishing on the net yesterday which asserted
that they would go down the shitter if they did not move to cut costs
pretty much immediately. That report mysteriously disappeared from the
city council web site, and then reappeared in a heavily redacted form.
They have already drained their emergency fund and there is no
possibility of replenishing it at least from conventional sources this
fiscal year. When the budget was originally published the city expected
to spend $851 million and have an income of $758 million. If my math
is correct that is a $93 million operating shortfall. Budget watchers
are asserting that that figure will likely grow by 50% by the end of the
fiscal year. It seems that the city will be required to declare a
fiscal emergency to cut spending.
This
whole mess is complicated by the fact that the mayor, Sheng Thao, has
been recalled and it is not completely clear who her replacement will
be. Once the voting results are official she will be gone, probably
around mid-December. However the person who would normally replace her,
city council president Nikki Bas, is also running for a gig on the
county board of supervisors and so may not be available. Assuming she IS
available she will take over until a new election can be held to fill
out the current term. (Were I her I don't think I would be in a hurry
to be captain of the Titanic.)
The
outgoing mayor has already put the kibosh on the hiring of five fire
engine crews that would employ a total of 60 full-time fire fighters.
Right now it is believed that the fire department will run over budget
by $34 million this fiscal year and the cops will run over $51 million.
Assuming the financial emergency is declared it could result in
significant cuts to things like health and welfare spending and
retirement pay to retirees. It could be brutal. I know it was in
Stockton when that city filed for bankruptcy some years back.
As
an amusing, related aside the Alameda County D.A., Pamela Price, was
also recalled. Assistant D.A. Royl Roberts will now take over until
the Board of Supervisors appoints a replacement.
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