Oakland's ongoing fiscal crisis hit home for 77 city employees last week when they were served layoff notices related to the City Council's budget balancing decisions.
In a message to staff Friday, City Administrator Jestin Johnson said roughly 100 people would be either laid off or "bumped" into different positions by Feb. 28 in order to help cut into an estimated $130 million budget shortfall.
"Today's steps are unfortunate, and difficult," Johnson said. "I won't sugarcoat that, but I do want you all to know we are moving toward a long-term financial stability this city has desperately needed for too long."
The layoffs are part of the city's phased approach to reducing its budget obligations this year.
The first phase involved a little more than $204 million in cuts to city programs and services and police overtime spending, along with postponing one police academy, temporarily closing two fire stations, not opening one station that was already closed, and transferring money into the general fund from other city sources, including almost $6 million from the Affordable Housing Trust Fund and almost $15 million from the Self Insurance Liability Fund.
A budget report from December says the second phase of the plan is intended to cut nearly $16 million by, in part, using the layoffs announced Friday.
Johnson said the city will provide resources for people who are now forced to look for other jobs, including providing information and assistance on applying for unemployment benefits, employment counseling, resume writing and continuation of medical insurance, among other things.
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"The leadership team empathize with every person impacted, and I hope you know that you have my respect and appreciation despite this action," Johnson said. "Truthfully, there remain more hard choices ahead of us as we head into the upcoming biennial budget process."
The city's unions said layoff notices were sent to police service technicians, environmental enforcement officers, crime analysts and many others.
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Union leaders from SEIU Local 1021, IFPTE Local 21, IBEW Local 1245 and IAFF Local 55 criticized the city for balancing the budget by eliminating jobs -- 19 of which are non-sworn Police Department positions and 26 are in the Public Works Department.
"The administration's failure to manage the budget isn't something that should be landing on the backs of city workers and community members," said SEIU 1021 Oakland chapter president and 911 dispatcher Antoinette Blue.
"Knowing how mid- and top-heavy the organization is, does it make sense for the city administrator to have three assistants when they are laying off members of public works who directly serve the community?" Blue said.
While the service cuts and layoffs are painful, the city is still facing projected ongoing budget deficits of between $130 million and $150 million.
To help reduce those shortfalls, and in addition to the potential for more budget cuts and layoffs in the next budget cycle, the City Council has placed a measure to increase the city's sales tax from 10.25 percent to 10.75 percent on an April special election ballot in order to raise between $20 million and $30 million annually for the next 10 years.
