A pedestrian walks by an Occupy Wall Street tent city in front of Oakland city hall on October 13, 2011 in Oakland, California.
Several hundred layoff notices will be issued this week to city employees in Oakland.
The notices are the fall out from a State Supreme Court decision that abolished redevelopment agencies.
The city will send out layoff notices to more than 1,500 of its workers.
In reality fewer than 200 are expected to actually lose their jobs, but the city said it wants flexibility as it deals with $30 million in cutbacks.
"This is a pare-dame shift for the state of California. We have been ordered to dissolve redevelopment and many other local governments and other cities are dealing with the same issue in their own way," Oakland City Administrator Deanna Santana said.
Santana noted that the state Legislature is working on a bill that would extend the effective date of eliminating redevelopment agencies but she said the city must begin preparing to lay off employees in case the legislation isn't approved. The state's current deadline to abolish redevelopment agencies is February 1.
According to city officials, the loss of redevelopment funding would create a budget gap of $25 million to $30 million for Oakland's budget.