Oakland Unions Bankroll $34M Tax Hike Measure, Poised to Reap Millions in Pay Raises

Public employee unions are spending $400,000 to pass the tax increase which serves mainly to ensure and pay for a contingent raise they negotiated in 2025

Published on Feb. 22, 2026

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The City of Oakland is proposing a $34 million parcel tax increase, with up to $14.9 million of that going toward 'triggered' pay raises for public employee unions if the measure passes. The unions, including SEIU Local 1021, IAFF Local 55, and IFPTE Local 21, have already contributed over $400,000 to the campaign to put the measure on the June 2026 ballot as a 'citizen-sponsored' initiative, which only requires a simple majority to pass rather than the two-thirds majority needed if the city council placed it on the ballot.

Why it matters

This case highlights concerns about the coordination between the city government and public employee unions to raise taxes and secure pay raises, potentially circumventing the higher voter approval threshold required for a city-sponsored tax increase. It also raises questions about the use of taxpayer funds to support union political activities.

The details

The city claims a $73.6 million budget surplus, even as it faces projected annual deficits of $115-$126 million. This surplus appears to be a mirage created through financial engineering, allowing the city to satisfy union contracts that promise up to $14.9 million in 'triggered' pay raises if a surplus is achieved. The unions are now spending hundreds of thousands to put the $34 million parcel tax increase on the ballot, which would cover 44% of the promised pay raises.

  • The city council approved union contracts in September 2025 that promise up to $14.9 million in 'triggered' pay raises if the city ends the fiscal year with a budget surplus.
  • The unions have contributed over $400,000 to the campaign to put the $34 million parcel tax increase on the June 2026 ballot.

The players

Service Employees International Union (SEIU) Local 1021

The largest contributor to the campaign, having donated $200,000.

International Association of Fire Fighters (IAFF) Local 55

Contributed $150,000 to the campaign.

International Federation of Professional and Technical Engineers (IFPTE) Local 21

Contributed $50,500 to the campaign.

PG&E

Contributed $50,000 to the campaign.

City of Oakland

Proposing the $34 million parcel tax increase, with up to $14.9 million going toward union pay raises.

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What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights the potential for coordination between city governments and public employee unions to raise taxes and secure pay raises, potentially circumventing voter approval requirements. It also raises concerns about the use of taxpayer funds to support union political activities.