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Quan Says Oakland Back In Black, Urges Warriors To Stay

OAKLAND (KCBS) - For the first time in years, Oakland will not have to lay off employees or cut city services to balance its budget, Mayor Jean Quan said Thursday. She hopes the rebound will convince the Golden State Warriors to stay in town.

"We made pretty deep cuts that also reorganized the city to make sure that we could keep as many frontline services as possible, and I think Oakland is on the rise. Oakland is growing," Quan said.

A $48 million reserve and tax revenue that is $10 million above projections make it possible to restore senior services that had been cut, Quan said, and to hold another police academy class.

KCBS' Doug Sovern Reports:

City Administrator Fred Blackwell said there is available money for a $1.8 million environmental review on the Coliseum City project, which is also intended to keep the Oakland A's and Oakland Raiders from leaving.

"We think we still have not only a great site for all three teams, but a very viable project, still," Blackwell said.

City officials hope to build a news sports complex across from the current Oracle Arena and O.co Coliseum, a project Quan said is far more substantial than the San Francisco waterfront development announced Tuesday.

Quan dismissed the proposed basketball arena at Piers 30-32 as little more than an idea and a handshake that faces many obstacles.

"It's a very tough site for them to develop," she said.

"We don't think the game's over on the Warriors or any of the teams."

KCBS, CBS 5 and Chronicle Insider Phil Matier Reports:

The balanced budget was welcome news after two years of public employee concessions, although the 2012-13 budget does not solve long-term challenges that include $1 billion in unfunded pension and healthcare costs.

(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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