Oakland leaders have been making tough decisions, with the city facing budget deficit of $62 million.
Mayor Libby Schaaf sent a grim letter to city staff Thursday, detailing a series of cutbacks they would need to make in order to keep the deficit to a minimum.
In the letter she warned that "absent immediate and significant expenditure reductions, the General Purpose Fund will be insolvent before the end of the fiscal year. The city will not be able to fund essential services or respond to emergencies like an earthquake or natural disaster."
City Council member Noel Gallo told KCBS Radio that that number could increase to "up to $90 million plus." Gallo added this could happen "probably within the next quarter if things continue the way they are."
Oakland is instituting an immediate hiring freeze, all non-union employees will have to take 10 unpaid furlough days, and city departments are preparing 10% to 20% budget cuts. The city will also begin negotiating with labor unions on how to further reduce costs.
Gallo said the drastic actions will impact everyone.
"We’re dealing with the homeless, housing, safety issues," he added, noting that the cuts will have a "dramatic impact" on services the city is used to providing.
"Hopefully things will change in the immediate near future in terms of getting people back to work, businesses open," Gallo explained. Without the tax revenue generated from local businesses, the city has been lacking funds to pay for the social services it usually provides.
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