Oakland’s costly coal defeat
Judge’s ruling could blow a hole in city budget already facing major challenges. Don't hate, Livermore is sitting on a budget surplus. East Bay Insiders TV breaks down the impacts of Azevedo's charges
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—Oakland’s long war against coal could cost it hundreds of millions of dollars — money the city simply doesn’t have.
A federal bankruptcy judge ruled last week that Oakland illegally interfered with developers of a proposed coal export terminal at the former Army Base, leaving the city liable for at least $230 million, and possibly up to $670 million in damages.
The ruling underscores a grim irony.
Oakland’s effort to block a polluting coal project, meant to protect West Oakland’s air, could end up crippling the city’s ability to fund basic services for years to come.
—For a city already drowning in massive projected budget deficits over the next two years, the ruling could be catastrophic.
Oakland has resorted to belt-tightening at many of its city departments, instituted a hiring freeze and has faced warnings from credit analysts about long-term solvency.
The city’s dire financial straits is leading to a likely revenue-generating tax measure on the June ballot.
Whatever tax the council decides to place before voters, it needs to create at least $40 million annually in new revenues to plug the budget as currently forecasted.
And the pain extends beyond City Hall: the Oakland Unified School District is staring down its own $115 million mid-budget shortfall, declining enrollment, and potential state oversight.
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—AZEVEDO AFTERMATH—Former San Leandro Councilmember Lee Thomas joins East Bay Insiders TV to break down the federal felony charges against San Leandro Councilmember Bryan Azevedo. Who enabled Azevedo over the years? Will he resign? What’s next for San Leandro?
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—More inside:
CITY NEWS: As Oakland’s budget is hemorrhaging, across the county, Livermore is sitting on a surplus.
Other impacts Councilmember Bryan Azevedo’s federal charges will have on San Leandro.
COUNTY NEWS: County Board of Education joins restitution effort for Russell City’s destruction.
Supervisor makes strategic county appointments to embattled official, two long-time allies.
