The City Council agreed Tuesday to a proposal by City Manager Robert Bobb to cut the police and fire budgets immediately, and to schedule a workshop on an additional $9 million in reductions. Councilmember Jean Quan (Montclair-Laurel) voted no, and Councilmember Jane Brunner (North Oakland) abstained.

Emergency cuts are necessary because of local overspending combined with Gov. Gray Davis's plans to shift about $1.3 million from cities and counties to balance the state budget.

Bobb said the city had been predicting a $13 million general fund shortfall, mostly from a $9.4 million overrun in police overtime. But under the governor's plan announced Friday, Oakland found it stands to lose $7.5 million by Feb. 1 that the state had been paying to make up for a 1998 reduction in vehicle license fees.

That brings the projected shortfall to $20.5 million for the fiscal year that ends June 30, and with only six months left, the city must act quickly. Oakland had already cut $28.4 million off this year's $380 million budget to keep out of the red.Severity unknown

"We knew this was coming, we just didn't know how severe it would be," Quan said, in an effort to postpone a hasty decision to cut fire services in her hills district.

Bobb's proposal slashes the police budget by $6.4 million, including $5 million in overtime, and cuts the fire department by $2.2 million. Furthermore, he wants to trim $2.1 million from the libraries in part by closing seven branches, and cut $1.2 million from the Office of Parks and Recreation. Two recreation centers -- Verdese Carter and San Antonio -- would be closed.

City Attorney John Russo, who also serves as president of the League of California Cities, said that cities are already lobbying the state legislature to restore vehicle license fees to their pre-1998 level and shield cities from cuts.

But since that can't be counted on, Bobb is proposing to make the police and fire cuts immediately. The other reductions would wait until Feb. 1, pending the legislature's approval of Davis's plan.Possible housing money loss

In addition, the city could lose about $22 million in affordable housing money that had not been spent as of Dec. 1. That would not affect the general fund, but could seriously hurt projects already in the works. Another take-away Davis has proposed is from the redevelopment agency, shifting $4.6 million in taxes to the school district next year with further increases in subsequent years.

"This is a very serious situation," Russo said.

Police Chief Richard Word said he has already reduced his overtime budget by $2 million, and needs to find $3 million more to cut in order to bring it down to $14 million -- a challenge, especially if the Raiders make it into the Super Bowl.

Fire Battalion Chief James Williams said the fire department will make its cuts by targeting the seven stations that have both truck and engine companies. The engine companies will be rotated among other fire stations to reduce the need for overtime. Staff also will be reduced at the hills stations during the winter months.Raising parking meter fees

Bobb also wants to raise money by increase parking meter fees from 75 cents to $1 per hour, increase parking tickets from $25 to $32, increase parking enforcement, boost fines for abandoned vehicles from $65 to $250, and initiate a $2 per-day fee on all vehicles rented in the city.

After balancing this year's budget, the city will have an even bigger task on its hands this spring: The deficit for next year is projected to top $45 million. A balanced budget for the next two years must be completed by June.