Latest news with #JananiRamachandran
San Francisco Chronicle
23-04-2025
- Business
- San Francisco Chronicle
Oakland may have overpaid city workers using the wrong formula. It hasn't fixed the problem
Oakland officials are scrambling to explain why the city appears to have overpaid some city staff by $1.6 million using an incorrect payroll formula, and whether the problem is more widespread amid a city budget crisis. The city auditor released a report in February concluding that between January 2018 and May 2024, Oakland paid employees in the transportation and public works departments excess pay for overtime work. The audit determined that the overpayment problem could have affected other city departments. On Tuesday, the city administrator told members of the City Council's finance and management committee that it had not yet fixed the problem and was seeking help from an outside consultant. The revelation comes as Oakland officials try to close an $89 million budget deficit in the general purpose fund, which pays for police and fire, before the next fiscal year begins on July 1. 'I'm concerned that we're spending money that we don't have,' Council Member Janani Ramachandran told the Chronicle. The February audit determined that the city was using a method for calculating overtime that is different from the requirements of the Fair Labor Standards Act (FLSA), a federal law that sets standards for minimum pay. The city's audit showed that 158 transportation employees and 368 public works employees were overpaid. One public works employee, whose annual salary was $127,691, received $107.44 per hour per the city's formula instead of $80.53 per the FLSA formula – meaning that the employee received 33% more than they should have, according to the audit. On Tuesday, Jestin Johnson, Oakland's city administrator, said that FLSA sets minimum standards, but that the city typically pays above that minimum. 'We pay a higher rate, which can impact the calculation,' Johnson told the committee. Erin Roseman, the city's finance director, said the payroll issues are 'not illegal and it's not inappropriate' as long as it's authorized, which staff are in the process of determining. But auditors found there was no evidence that the overtime pay was ever authorized. 'Neither the City Charter, Municipal Code, City ordinances, nor labor contracts explain the City's method for calculating overtime pay,' the audit said. 'Furthermore, the Finance Department — whose Payroll Division processes payroll and ensures employee compensation aligns with official terms and regulations — could not explain why the City is using this method; neither could the Human Resources Management Department or the City Attorney's Office.' Michael Houston, the city auditor, said Tuesday that his office was unable to determine how the formula was first entered into the city's system and why. In addition to the city's transportation and public works departments, he said officials should also review payments to employees in other departments. 'The calculation applies citywide and it could be a much bigger number, but we can only speak to what we found,' Houston said. 'There is no reason for us to think that it's limited to that.' It's unclear how long the consultant will take to complete their analysis of the city's finance issues. The consultant is currently reviewing the auditor's work, but Johnson said he would ask them to also look at other city departments. Ramachandran told the Chronicle she's confused why an external consultant needs to review the auditor's work. She agreed that the consultant would be necessary to review other city departments that may have been affected. 'I definitely believe in the need to have good salaries for city workers who do a range of core city services,' Ramachandran said. 'But not overpayment beyond what's authorized.'
CBS News
16-04-2025
- Business
- CBS News
Oakland voters on track to approve a sales tax increase
Oakland's Measure A, a half-cent sales tax proposal, was ahead in early returns Tuesday night with about 64 percent of voters approving it, according to information from the Alameda County Registrar of Voters' Office. If approved, it would increase Oakland's sales tax from 10.25 percent to 10.75 percent to raise between $20 million and $30 million annually for the next 10 years. It requires a majority of votes -- greater than 50 percent -- to pass. The Oakland City Council voted 6-0 to place the measure on the ballot in December 2024, with then-councilmember Carroll Fife and Councilmember Janani Ramachandran excused. The tax "will help stabilize our finances and prevent further erosion in city services, so without the added revenue Oakland will be forced to do deeper cuts that threaten critical community programs such as public safety, cultural arts, human services and undermining the city's quality of life and economic vitality," said Councilmember Kevin Jenkins at the time. Jenkins, who sponsored the ordinance to place Measure A on the ballot, is now serving as interim mayor until the winner of Tuesday's mayoral election begins their term. Measure A is intended to help tackle Oakland's ongoing budget shortfall, which is estimated at $280 million over the next two-year budget cycle.
Yahoo
14-02-2025
- Politics
- Yahoo
‘Lifesaving legislation' introduced to save Oakland fire stations
OAKLAND, Calif. (KRON) – Three council members are stepping in to keep fire stations open in Oakland as the city navigates a major budget shortfall. Some Oakland city leaders are calling this 'lifesaving legislation.' It would reallocate funds to ensure no more fire stations close. 'When the news broke that there were six slated closures of fire stations in Oakland due to our budget crisis, the community rallied. We heard from thousands of Oakland residents that they are not willing to compromise on public safety, specifically fire stations,' said Councilmember Janani Ramachandran. Oakland boy dies after falling from hotel window in Mexico, family blames faulty infrastructure The movement has consisted of petitions, rallies, and now a new proposal from three Oakland council members to keep fire stations afloat. If approved, the newly proposed ordinance would reopen two shuttered fire stations and prevent the closure of four others. Fire stations 25 and 28 are currently closed at least through June as part of the city's effort to close a budget deficit that has swelled past $200 million. 'In this budget situation where we really have to take a step back and ask ourselves 'What can the city do?' And I think we all understand public safety is at the top of the pyramid,' Councilmember Zac Unger said. 'We looked for every penny. This has been truly, truly an enormous task of finding every last penny possible that could go towards reopening our fire stations,' Ramachandran said. Councilmembers Ramachandran, Unger, and Rebecca Kaplan are proposing the city reallocate millions of dollars from three city funds to pay for the stations. 'One of the biggest sources of funding for this is $2.6 million, which comes from the JPA. The Coliseum arena has experienced an uptick of sales and revenue, so that positive flow of money is being flowed back to the city,' Ramachandran said. Oakland fire captain and union president Seth Olyer described how crucial it is for the rest of city council to approve this ordinance. 'I mean, within the first eight hours of closures on January 6… 25 and 28 closing, there was a CPR call within a stone's throw of Engine 25. I personally went to a house fire on Engine 21, which is in between the two closed fire stations. It took us 20 minutes to get there. So these fire closures have real world impacts,' he said. The Oakland city council will discuss the ordinance at their meeting on March 4. Council members encourage residents to attend if they want to support it. If it is approved, the two closed fire stations would be able to reopen by the end of this fiscal year. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
