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OP-ED: Balancing the Budget—and the Needs of Our Residents

When I took office in January, I knew that my Administration would be facing a large deficit. In fact, with a $360 million shortfall over the next two years, it is the largest deficit in Oakland’s history. This inherited shortfall is largely the result of two factors: the loss of federal pandemic funding and a decline in revenue generated from the real estate transfer tax and transient occupancy tax.

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Mayor Sheng Thao
Mayor Sheng Thao

By Mayor Sheng Thao

When I took office in January, I knew that my Administration would be facing a large deficit.

In fact, with a $360 million shortfall over the next two years, it is the largest deficit in Oakland’s history. This inherited shortfall is largely the result of two factors: the loss of federal pandemic funding and a decline in revenue generated from the real estate transfer tax and transient occupancy tax.

But when you’re in need of City services, something I know about all too well, it doesn’t matter why there’s a shortfall, it matters if you’ll have a job, whether you have an affordable place to live, whether you live in a city that has opportunities and resources for your children and your family.

With this in mind, our challenge was unprecedented, but our mandate was clear: Balance the budget, invest in our communities, preserve jobs.

Thanks to the ingenuity and hard work of our City staff, our “One Oakland” proposed budget accomplishes all of the above—while also making significant investments in our communities, including the largest in affordable housing in the city’s history.

Yes, we were forced to make difficult decisions, but it was also an opportunity to create efficiencies and improve coordination in City government, reducing costs and strengthening our ability to serve our communities.

As a result, our proposed budget includes a new reorganization of City departments— Department of Homelessness & Housing Development; Department of Children, Youth and Families; and Department of Planning, Building and Economic Development.

The reorganization will ensure each department has a clear mission related to community priorities and save $2 million per year, allowing us to preserve vital services in these challenging times.

This reorganization will be supported by an improved management structure in the City Administrator’s Office. Departments with related services will be grouped into “channels” and report to or coordinate with a dedicated Deputy or Assistant City Administrator.

To further close the gap, we are freezing vacant positions—300 in total—many of which have been open for a long period of time; allowing for attrition, meaning if a position becomes vacant, we will hold off hiring a replacement until funding becomes available; and delaying on spending.

In all cases, we did this with the goal of minimizing impacts on services. And we will prioritize hiring for these positions if revenue exceeds forecasts.

This budget is a reflection of my Administration’s values: Centering Equity; Valuing the City Workforce; and Strategic Thinking.

This is why, despite the environment we face, the proposed budget allocates more than $200 million over the next two years toward affordable housing; expands early childhood education through Oakland’s Head Start and Early Head Start program; includes more than $106 million to build, repair and upgrade parks, recreation facilities, libraries, storm drains and non-road infrastructure; and invests more than $9.1 million toward street safety.

The proposed budget will also allow for better coordination of key public safety goals while continuing the ‘civilianization’ of certain functions of the Police Department.

This is a budget that manages our fiscal situation responsibly, responds to the needs of our residents and local businesses, and reflects my Administration’s commitment to direct investments in our communities—all while avoiding layoffs.

I applaud our City staff for this huge accomplishment, balancing not just the budget but the needs of our residents.

I look forward to hearing community input through a series of public forums—and to adopting this budget on June 30 so we can move forward together, as One Oakland.

Sheng Thao is the 51st and current Mayor of Oakland.

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Activism

OPINION: The Fire of Oakland’s Justin Jones

Jones made headlines three years ago when he was one of a pair of Justins. Along with fellow State Rep. Justin Pearson (D-Memphis), he fought their removal from the state house in Tennessee and won reinstatement. Now, Pearson is running for Congress and Jones is still fighting for all of us.

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Tennessee State Rep. Justin Jones (D-Nashville). File photo.
Tennessee State Rep. Justin Jones (D-Nashville). File photo.

By Emil Amok Guillermo

You may know Tennessee State Rep. Justin Jones (D-Nashville).

He grew up in Oakland and the East Bay. His mother is Filipino. You can tell by his full name Justin Shea Bautista Jones.

His father is African American.

He is fighting for all of us.

Jones made headlines three years ago when he was one of a pair of Justins. Along with fellow State Rep. Justin Pearson (D-Memphis), he fought their removal from the state house in Tennessee and won reinstatement.

Now, Pearson is running for Congress and Jones is still fighting for all of us.

The recent 6-3 Supreme Court decision barring the use of race in drawing congressional districts marks a major turning point in U.S. history.

The decision took away the Voting Rights Act’s power to assure minority voices were both heard and represented.

“What we’re seeing now is this new Jim Crow system in which Black and Brown communities are without voice in our political process,” he told Fredricka Whitfield on CNN last weekend.

“That’s a canary in the coal mine for the rest of the nation. If they come for one of us, they’re coming for all of us, and some of my message to America is that the South is the front line of democracy,” Jones said. “They are dismantling multi-racial democracy here in the South, in states like Tennessee and Louisiana. But they aren’t going to stop here.”

That’s why Jones said we have to start paying attention to the South, and start helping them fight back there,” he said.

“I want to be clear that this terror, this type of system they’re enacting, are the same systems my grandparents told me about who grew up in Tennessee, a system where people like me couldn’t even be in political office. That’s the time they’re bringing us back to and I’m not sounding the alarm to be alarmist. But I am sounding it because we’ve seen this before in our history.”

Jones talked about Reconstruction and about what happened between the end of the 1800s and the beginning of the 1960s, when there was no Black political representation.

It’s a rebellion to keep our democracy going forward, he said.

“Stand with us and help us fight back against this extremist power grab — this racist power grab against our vision of a multi-racial democracy,” Jones added.

“While there is a litigation strategy, it’s important to maintain what he called a “movement strategy” that leads to the largest voter mobilization and registration that has ever been seen in the South,” he encouraged.

In 2026.

“Tennessee is an oppressed state,” Jones said. “It’s a state where one in five Black voters can’t vote because of felony disenfranchisement. It is where you can use a gun permit to vote, but you can’t use a student ID card to vote.

That’s the Asian American African American voice of Justin Jones.

Read his words for inspiration.

About the Author

Emil Guillermo is a veteran journalist, commentator, and comic stage monologist. His new show “69, Emil Amok: Anchorman—The News Made Me Do It,” is at the San Diego Fringe at New Destiny/Lincoln Park, 4931 Logan Ave. Ste. 102. May 14-23, at various times. Get tickets here.

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Bay Area

How Is AI Affecting California? The State Wants You to Share Your Story

The program marks the first time the state has opened the platform to all Californians. State officials said the effort is designed to give residents a direct role in discussions about how AI should be regulated and used as the technology rapidly expands across industries.

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By Bo Tefu, California Black Media  

Gov. Gavin Newsom announced May 7 that California is expanding its Engaged California digital democracy initiative statewide, inviting residents to help shape future state policies on artificial intelligence (AI) and its impact on jobs and the economy.

The program marks the first time the state has opened the platform to all Californians. State officials said the effort is designed to give residents a direct role in discussions about how AI should be regulated and used as the technology rapidly expands across industries.

“We’ve got to be clear-eyed about this moment: AI is moving fast, bringing enormous opportunity, but also real risks,” Newsom said in a statement. “Californians deserve a seat at the table as we shape what’s to come.”

The initiative will roll out in two phases. Beginning immediately, Californians can sign up online to share how AI is affecting their work and communities and provide ideas for possible government action. Later this summer, a smaller group reflecting the state’s workforce demographics will participate in live discussions focused on developing policy recommendations.

State officials said the goal is to identify areas of agreement among Californians and provide policymakers with public feedback as the state develops future AI regulations and workforce strategies.

Engaged California is modeled after digital democracy programs used in Taiwan and is intended to encourage structured public discussion rather than social media-style debate. Officials described the effort as a form of “deliberative democracy” aimed at helping residents engage directly in state decision-making.

“The more Californians are engaged in the democratic process, the better able we’ll be to confront the challenges we face together,” said Nick Maduros, California Secretary of Government Operations, in a statement.

The statewide launch builds on two earlier pilot programs. One pilot gathered public input following the Los Angeles firestorms to help guide recovery efforts, while another collected ideas from state employees about improving government operations.

California has positioned itself as a national leader in AI policy and development. Since 2023, the Newsom administration has introduced initiatives focused on responsible AI use in government, cybersecurity protections, workforce training and regulations targeting risks such as deepfakes and AI-generated robocalls.

The state has also partnered with companies in Silicon Valley — including NVIDIA, Google, Adobe, IBM and Microsoft — to expand AI education and workforce training programs across California schools and universities.

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Activism

More and More, Black Californians Are Worried About Rising Costs of Housing, Energy, Food and Gas 

According to an April 2024 report by the Greenlining Institute, low-income Black Californians are struggling with affordability due to a combination of historical systemic barriers and modern economic pressures. The Greenlining Institute is a California-based policy, research, and advocacy nonprofit founded in 1993 to fight systemic racism and economic injustice.

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iStock.

By Antonio‌ ‌Ray‌ ‌Harvey‌, California‌ ‌Black‌ ‌Media‌

Housing, energy, food and gas are four essential household expenses, and their rising costs are forcing residents—especially lower-income households—to make difficult trade-offs, Assemblymember Rhodesia Ransom (D-Stockton) said at a conference on affordability last week in Sacramento.

Ransom, a member of the California Legislative Black Caucus (CLBC), noted a shift in consumer behavior, stating, “Before people used to choose between things that they wanted and things that they needed.”

“Now, what we’re hearing from constituents is they are prioritizing their needs differently,” she said. “Because of the affordability crisis, it’s no longer about choosing between other needs. Our constituents are now saying ‘what needs to be prioritized?’ Gas and food are at the top of the list.”

Ransom made the comments about affordability at Capitol Weekly’s informational conference titled “Affordability: The Cost of Living in California,” which was held on April 30 at the University of California’s Student and Policy Center.

Co-hosted with the University of California Student and Policy Center, the political conversations focused on identifying policy solutions to the state’s extremely high prices for energy, food, and essentials.

The keynote speakers at the conference were former Assemblymember Lorena Gonzalez, president of the California Federation of Labor Unions, and Mike Madrid, a political strategist, author, and senior fellow at UC Irvine.

Conversations about affordability are taking on greater urgency as the election season kicks in, speakers said.

According to an April 2024 report by the Greenlining Institute, low-income Black Californians are struggling with affordability due to a combination of historical systemic barriers and modern economic pressures. The Greenlining Institute is a California-based policy, research, and advocacy nonprofit founded in 1993 to fight systemic racism and economic injustice.

Black households in California experience the highest levels of rent burden; approximately 65% of Black renters, according to the Greenlining report. Historical “redlining” and ongoing discrimination have restricted homeownership. Black families also pay 43% more for energy than White households, partly because they are more likely to live in older, less energy-efficient rentals.

In addition, roughly 1 in 3 Black adults (36.5%) reported household food insecurity in late 2025, more than double the rate for White adults. This is often exacerbated by “food deserts” in predominantly Black neighborhoods.

In March, Assembly Minority Leader Heath Flora (R-Ripon) expressed concerns about affordability in California, describing it as a crisis where families are being “pushed to the edge.”

“Californians should not have to choose between putting food on the table or filling up their car,” Flora stated. “We need to cut costs now. Not tomorrow, not next week, not next month. Now.”

Cuts to the federal Supplemental Nutrition Assistance Program (SNAP) funding are being driven by the Trump Administration’s One Big Beautiful Bill Act (H.R. 1), which is reducing federal spending by approximately $187 billion through 2034.

Those reductions are putting more pressure on the state to help, Ransom said. According to the AAA Gas Prices website, as of May 8, California’s gasoline prices averaged over $6 per gallon in some areas, with various locations experiencing spikes of $7 to $8 per gallon. In California, fuel prices are driven by refinery maintenance and market volatility, while high food prices are linked to rising transportation costs, experts say.

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