FY 2026-27 Proposed Midcycle Budget

This Section Covers: A Budget Overview The City's Budget Process Budget Terms and Concepts BUDGET OVERVIEW The budget is the City’s plan for how City revenue will be spent on services that support our community. A balanced budget ensures our "revenues" (the amount of money the City brings in) are equal to or greater than our "expenditures" (the amount of money the City spends). While other cities and government agencies have different cycles, Oakland approves a budget every two fiscal years. The budget currently under consideration runs from July 1, 2026 through June 30, 2027. The State of California, and most cities, counties, and school districts use this same timeframe for their fiscal year.   What is the City's budget process?   From February to June, every other year, City staff, the Mayor and City Council work together to create a balanced budget by June 30, as required by law.   While the City’s budget is adopted for a two year period, it is divided into two one-year spending plans. During the second year of the two-year budget cycle, the Mayor and City Council conduct a midcycle budget review to address variances in estimated revenues and expenditures and other changes to the City’s financial condition.   How is the City's budget funded?   The City of Oakland's budget is funded through local taxes, service fees, grants, voter-approved bonds, and other sources. When you pay taxes, such as sales or property tax, a percentage comes to the City to fund local programs and services. For example, for every dollar that you pay in property tax, the City of Oakland receives a little less than 26 cents. The rest goes to other local government agencies like Alameda County, AC Transit, and Oakland Unified School District.   Many Government Agencies provide support for the Oakland community.   Together, we provide essential services and support to our community-- from maintaining roads, sewers, and parks to providing education, transit, and clean water.   Many of the services that Oaklanders care about such as public & mental health, water, education, transportation, and homeless services are not in the City's budget.   The City of Oakland's total average annual budget is approximately $2.1 billion.   General purpose funds are generally supported by tax revenue and make up 39% of the City’s budget. They are the most flexible with regards to what they can be spent on. The other 61% of the City’s budget comes through grants and voter approved bonds and legally must be used for specific purposes; these are called restricted funds. For instance, the City’s Measure KK funds may be used only for street and infrastructure improvements and affordable housing whereas the City’s business tax revenues can be used for all Budget Guide & Background Budget Guide & Background F Y 2 0 2 6 - 2 7 P R O P O S E D P O L I C Y B U D G E T F Y 2 0 2 6 - 2 7 P R O P O S E D P O L I C Y B U D G E T 20