Despite a strong economic recovery that has produced solid tax revenue increases, Oakland’s fiscal outlook continues to deteriorate.
The city now faces a projected $100 million annual shortfall by the 2019-20 fiscal year, a forecast 74 percent worse than just two years ago.
Some of that difference is due to using more realistic assumptions. But the city’s latest five-year projection still ignores payments on major debt and makes overly optimistic predictions about the strength of the economy.
Meanwhile, Oakland leaders continue pushing huge debt for employee retirement benefits onto future generations of taxpayers. The shortfall has increased in two years from $2.4 billion to about $2.8 billion, or an average $17,500 per household.
If not for an exorbitant, hidden city property tax to help cover some of the cost, the city would be unable to meet payments on the retirement debt.
Read the whole story in the East Bay Times