FY 2026-27 Proposed Midcycle Budget

  Reductions  to September 2026 to allow time for the creation of the new job classifications, recruitment, and hiring. Placeholder positions from the “Complaint Investigator” series are used to indicate the positions are new and to use cost estimates for budgeting purposes.  Equity Consideration: The City has not had job classifications that fit the work of investigating wage theft and working conditions claims since voters passed the Hotel Wage and Working Conditions ballot initiative in 2020. The new classifications are long overdue and in line with how these positions are staffed throughout the country. The unit was understaffed at two (2) positions and mismatched with the positions from the Contract Compliance series. With only two positions continuing, creating permanent civil service positions that fit the work is critical to effective implementation of voters’ vision for protecting low wage workers.    Converts 1.0 FTE Vacant Compliance Officer to a 1.0 FTE Administrative Analyst to support enforcement and reporting. Adds the remaining amounts to the position line item for Bilingual Pay Premiums to improve outreach and education capacity and to the contract expenditure for temporary employees to continue to address gaps in staffing. The Contract Compliance job classifications have been under revision for the past few years. During this time, vacancies can only be filled on a temporary basis with "Exempt Limited Duration Employees” (ELDE). Replacing one vacant ELDE compliance position with a permanent, civil service Analyst II increases staffing the monitoring and reporting of contract compliance and adds stability to the compliance unit. It reduces the cost of turnover, and the time managers spend re-running recruitments. Increasing the amount for the temp agency contract is still necessary due to gaps caused by turnover in the remaining ELDE positions, which may continue until classification revision is completed and the permanent hiring can occur. Equity Consideration: The equity impact is on balance neutral. The replacement of a temporary position with a permanent civil service position is likely to improve stability and recruitment of qualified candidates.   2. Eliminates 1.0 FTE Complaint Investigator III, in the Citywide Labor Standards Investigation Unit leaving the unit with two (2) FTEs, the journey-level Investigators (placeholder for costing: “Complaint Investigator II”). The loss of the third FTE in the baseline budget will mean that the unit may not be able to investigate some claims of wage theft and inhumane working conditions.   Equity Consideration: The reduction of one (1) FTE will disproportionately affect low wage workers and small businesses that rely on the City for compliance education. The unit already receives more complaints and inquiries about wage theft and inhumane working conditions than the two staff can fully investigate. The unit has functioned without a supervisor by spreading a manager's time more thinly across this unit and two other units staffed where the Contract Compliance job classifications are under revision and can only be filled with temporary employees.  1. Deletes 1.0 FTE Vacant Assistant Contract Compliance Officer. This deletion is to offset the increased expenditures on compliance software and training, and the elimination of the software usage fee charged to city contractors. The position assists Compliance Officers and engages in outreach and education. The training and software will enable Compliance Officers to be more effective and reduce the need for an assistant. The outreach and education work will be spread across remaining eight (8) positions, including two (2) vacant Supervisors, five (5) compliance officer positions including two (2) vacancies, and one (1) Analyst.  Equity Consideration: Compliance work is legally mandated and a basic and critical service, while outreach is a significant, but optional service. The deletion of an entry-level position reduces the opportunity to start a career in Contract Compliance with the City. The outreach and education to local business and community partners will be offset by spreading it to other remaining staff and utilizing a grant with an outside entity.  2. Finance Restorations     Restores the capacity for citywide revenue collections and customer service response times through targeted staffing realignments and position conversion across Collections, SPARE, Mandatory Garbage, and Business Tax operations.  The proposal includes continued support for 1.0 FTE Collections Officer and 1.0 FTE Revenue Analyst for the SPARE program, while realigning staffing classifications and freezing select vacant positions to maintain core revenue collection, audit and customer service functions.  The SPARE program manages the special assessment exemption and refund program for local measure exemptions.  Equity Consideration: Decreased wait times to resolve outstanding tax issues for non-compliant businesses can lead to a more efficient tax administration and faster collection of revenue. The enhanced revenue to the City increases funds available to provide services to Oakland residents.   1. The proposed landlord audit initiative is estimated to generate approximately $4 million in additional General Purpose Fund revenue through identification of delinquent rental business tax accounts associated with properties already registered in the City’s rent registry system. Increased compliance with existing business tax requirements will strengthen the City’s ongoing ability to support core municipal services and maintain fiscal stability.  Equity Consideration: The proposed audit initiative advances equity by promoting consistent enforcement of existing business tax requirements across rental housing providers. Additional revenues generated may also help preserve funding flexibility for programs and services that benefit historically underserved communities. 2. Restores the Treasury Bureau’s capacity