A Message to Oakland Legislators: Sustainable Solutions, Not Higher Taxes

Oakland is facing undeniable fiscal pressure, and as rental housing providers who contribute significantly to the city’s stability and long-term health, EBRHA recognizes the challenges ahead. But we also know that solving Oakland’s budget issues cannot rely on increasing taxes for property owners. The majority of these owners are small, local rental housing providers, keeping our communities housed. The data is clear: the city’s core problem isn’t revenue alone. It’s the structural imbalance between how fast expenses are growing and how slowly revenues can keep up.

City expenses, particularly personnel costs, have grown at a pace that far outstrips inflation and revenue. Employee compensation has risen by roughly $411 million since 2013. That mind-boggling amount is about $184 million more than inflation would justify. Today, annual pension and above-inflation wage obligations consume roughly 28% of Oakland’s unrestricted revenue, totaling over $450 million. And the city faces an alarming $1.8 billion in unfunded pension liabilities, according to independent analysis. These are long-term, fixed costs that will continue to accelerate unless addressed directly.

This imbalance is already harming Oakland’s future tax base. When operating expenses for housing rise, property values fall. Rental owners are selling properties at lower prices, which diminishes assessed values and permanently reduces future tax revenue for the city. Oakland already has some of the highest property tax burdens in the country, and adding more taxes will only accelerate this downward cycle. It is neither sustainable nor economically sound to continue placing additional financial strain on the very property owners who keep residents housed and neighborhoods stable.

We urge Oakland leaders to pursue a more strategic path:

• Grow the tax base by strengthening public safety, stabilizing neighborhoods, and encouraging investment.
  
  

• Control structural cost-drivers, particularly escalating personnel and pension obligations.
  
  

• Pursue innovative and balanced revenue strategies, rather than continuing to shift the burden onto property owners through increases to property taxes, transfer taxes, utility taxes, and business license fees.
  
  

Oakland needs solutions that expand opportunity, not shrink it. Incentive housing growth, not punish it.  For these reasons, EBRHA strongly encourages city legislators to VOTE NO on any further tax increases targeting property owners. Our city’s financial stability depends on addressing the true drivers of the budget crisis and creating an environment where both residents and rental housing providers can thrive.

Christopher Tipton is the Marketing & Communications Manager with the East Bay Rental Housing Association.