OAKLAND — Oakland’s interim mayor is delaying the release of a deeply consequential, two-year budget proposal that had been expected to detail how the city would balance a looming $265 million budget shortfall.
The move by Interim Mayor Kevin Jenkins comes just two weeks after Oakland’s top finance official quietly resigned from the job she’s held for the last four years, according to a resignation letter obtained by this news organization. The letter by Finance Director Erin Roseman, which was dated April 16, gave no reasons for her departure and said she planned to serve until June 15.
The developments mark the latest signs of upheaval at Oakland’s City Hall amid a perilous budget crisis, which has forced dozens of layoffs and potentially hundreds of millions of dollars in cutbacks to city services over the next two years. Compounding those issues is a leadership vacuum brought on by the unprecedented recall last November of former Mayor Sheng Thao — prompting the city to cycle through four mayors in the span of seven months.
A shortfall in the city’s current fiscal year budget recently spurred Oakland leaders to lay off 42 employees and demote 34 others, while also temporarily closing two fire stations, cancelling all police-training academies and slashing $2.6 million in funding for outside nonprofits and a host of other grants and citywide programs.
All of that pales in comparison to the financial challenges ahead over the next two years. As recently as January, city finance leaders warned that Oakland faces a $138 million deficit during its next fiscal year — which runs from July 1 until June 30, 2026 — and another $127 million deficit the following fiscal year. Much of that deficit has been blamed on lagging revenues from taxes on real-estate transfers and business licenses, along with rising overtime costs for the city’s police and fire departments.
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Oakland city council district 6 member Kevin Jenkins, center, talks about his recent selection as the interim mayor of Oakland during the 2025 Inauguration Ceremony held at Oakland City Hall in Oakland, Calif., on Monday, Jan. 6, 2025. (Jose Carlos Fajardo/Bay Area News Group)
Jenkins — who has been leading the city until former Congresswoman Barbara Lee takes over later this month — was expected to release his budget proposal for the next two fiscal years on May 1. But a day ahead of its planned release, a city spokesman announced that the budget would instead be made public on Monday.
The announcement cited “a period of transition following the recent election,” and said that the four-day delay would “allow for the briefing and input of incoming elected officials and other key stakeholders.”
“Interim Mayor Kevin Jenkins thanks his budget team, which has worked incredibly hard to produce a balanced budget investing in public safety and core services while taking critical steps toward sustained fiscal balance,” city spokesman Sean Maher said in the announcement.
Maher later said in a statement that members of the City Council would be among those people briefed by Jenkins’ budget team. Those briefings would happen individually, and not as a group, he said.
Stephanie Ong, a campaign spokesperson for Lee, said Thursday that Lee also is being briefed by Jenkins on the budget proposal “to ensure a smooth transition,” and that Lee did not have a hand in the delay.
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A key person expected to help in shaping that budget is now heading for the door.
Roseman, the city’s finance director, submitted her resignation letter a day after the April 15 mayoral election, when Lee defeated former City Councilman Loren Taylor in an election to replace Thao. Maher confirmed Thursday that Roseman plans to leave “to pursue other opportunities,” adding that the city would try to find an executive search firm over the next few weeks to help land a replacement.
Roseman’s departure came amid growing scrutiny over her handling of the city’s finances. Roseman appeared to take a more hands-on role at City Hall of late, leading to clashes with city leaders over seemingly procedural issues — among them the purchase of 37 police vehicles that, for months, sat unused at a Ford dealership in San Leandro.
Councilmember Rebecca Kaplan went so far as to liken Roseman’s decision-making to a “pattern of lies” in an internal email, which was obtained by this news organization and addressed to Deborah Edgerly, one of two consultants the city hired in February to assess its finances. In a subsequent interview, Kaplan said Roseman “does not have, legally speaking, the authority to overrule the council. But sometimes she just doesn’t sign the checks.”
Oakland Finance Director Erin Roseman addresses the Oakland City Council at a meeting on Dec. 17, 2024. (Screenshot courtesy of the city of Oakland)
Last year, Roseman again made waves in City Hall when she authored a finance report warning the city was on the verge of bankruptcy, while pointedly advising city leaders against “fecklessness” in their continued spending. A version of it appeared online before being hastily taken down and replaced with a version edited by City Administrator Jestin Johnson, which included softer language, fewer references to “insolvency” and no more mention of the bankruptcy term “Chapter 9.”
In her newly-obtained resignation letter, Roseman gave no reasons for leaving her post. Attempts to reach Roseman on Thursday were not successful.
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“I am grateful to have been able to serve the citizens of the City of Oakland for the last four years in this capacity and am proud of all the work I have been able to accomplish on their behalf with a great team in the Finance Department,” Roseman wrote in her letter addressed to Johnson.
Staff writer Shomik Mukherjee contributed to this report.
My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
