The San Francisco Chronicle reported Wednesday that the city is facing severe financial shortfalls, despite a booming economy that has seen wealthier households relocate from San Francisco across the bay to gentrifying neighborhoods.

The problem is that the city's costs are rising faster than its growing revenues, thanks partly to pension obligations — an increasingly common challenge for large, Democrat-run cities that made ambitious promises to public sector unions.

As Oakland Mayor Libby Schaaf — famous for tipping off illegal aliens to an impending federal law enforcement sweep, in an effort to defend her "sanctuary city" — noted in her recent budget statement to the city council last week:

Though cranes are rising across the skyline and Oakland's revenues are growing at a steady rate due to the strong real estate market, the City's expenses continue to rise faster than revenues. Personnel-related expenses, particularly the cost of medical benefits and pensions – as well as insurance, utilities, and fuel costs – are growing at 2-3 times the rate of inflation and revenue growth.