OAKLAND — Months ago, the city’s leaders breathed a sigh of relief when they managed to avoid dramatic cuts to public spending in approving a new two-year budget.
But the underlying gap between the city’s costs and its revenues has not gone away, and now Oakland voters may be asked to approve a new tax on the ballot next June that would produce an additional $40 million annually.
Crucially, city leaders have already claimed the revenue in next year’s budget. And while they are likely to promise voters that the tax would fund public safety, IT systems and 911 operations, in reality the money could be spent at the City Council’s discretion.
Trickier for the city is that the options for pursuing a new tax appear limited. Oakland has effectively maxed out its ability to tax sales, while lon