FY 2026-27 Proposed Midcycle Budget

Elizabeth Lake, Acting City Administrator Subject: FY 2026-27 Mayor’s Proposed Midcycle Budget Date: June 5, 2026 Page 2 Special City Council June 12, 2026 9. Suspending The Minimum Budget Set Asides For The Democracy Dollars Fund And For Non-Staff Costs Related To The Public Ethics Commission’s Administration Of The Oakland Fair Elections Act’s Democracy Dollars Program EXECUTIVE SUMMARY The Mayor’s Fiscal Year (FY) 2026-27 Proposed Policy Midcycle Budget was published on May 15, 2026. This report was written to provide the City Council with an overview of the proposed one-year spending plan that the City Administrator will appropriate during FY 2026-27. The FY 2026-27 Proposed Midcycle Budget may be accessed through the City’s interactive online budget book at www.oaklandca.gov/budget. BACKGROUND / LEGISLATIVE HISTORY Per Section 801 of the Oakland City Charter, the City Council is required to adopt a budget by June 30 to authorize expenditures for the following fiscal year. If a budget is not adopted by June 30, the appropriations of the previous fiscal year are deemed to be effective until the new budget and appropriation measures are adopted Attachment A to this report contains a PDF version of the FY 2026-27 Proposed Midcycle Policy Budget. On June 1, 20206, the Mayor presented the proposed budget to the City Council at a Special City Council meeting. Attachment B contains the presentation materials provided to the City Council during that meeting. ANALYSIS AND POLICY ALTERNATIVES This proposed budget reflects the City’s efforts to sustain core services using currently available resources while continuing to address Oakland’s long-term structural fiscal challenges. The cost of providing services continues to rise faster than available revenues. Across departments, budgets have been largely adjusted to minimum operating levels necessary to continue core services. Personnel budgets have been aligned with current projected staffing levels in the Police and Fire Department, while operations and maintenance, and contract budgets have been reduced to support only essential and currently planned activities. There is little remaining flexibility for new initiatives, service expansions or unforeseen cost pressures. Public Safety This budget prioritizes core emergency response and violence prevention operations within significant fiscal constraints. While the proposed budget preserves baseline police, fire, dispatch and violence prevention operations, reductions to specialized enforcement activities limit the City’s ability to sustain certain proactive public safety operations and intervention efforts over time.