School Districts in Financial Distress Legislation (AB 1840 and SB 874)

September 17, 2018 Update

Governor Jerry Brown signed the Education Trailer Bill, AB 1840!

Overview:

In an endorsement of the spirit of the Oakland Unified School District Fiscal Vitality Plan which calls for implementing strong budget accountability, improving business practices, reestablishing the reserve, and rightsizing OUSD, both the Assembly and Senate Budget Committees passed the Department of Finance’s proposal for School Districts in Financial Distress as part of the Education Trailer Bill. The next phase will be for AB 1840 and SB 874 to go to the full Assembly and Senate, respectively, and then to be signed by the Governor before final. 

Key Highlights:  

• Legislation is moving at the State level that can positively impact OUSD’s structural deficit over the next five years. As OUSD works to implement changes across the District to address our financial crisis, the State is moving a proposal through the legislative process that would help districts in financial distress.

• There are clear mandated benchmarks required to receive support from the State. The proposal provides much needed fiscal relief to the District for the next five years and also requires OUSD to meet certain conditions and benchmarks for fiscal recovery.

• The benchmarks include short- and long-term steps that closely align to our current Fiscal Vitality Plan and Blueprint for Quality Schools. For instance, OUSD would be required to partner closer with county and state officials, adopt multi-year financial projections that would eliminate our deficit and produce a plan to right size the District.  

• The proposal is not final until the Governor signs it. The Assembly and Senate Budget Committees passed the Department of Finance’s proposal for School Districts in Financial Distress as part of the Education Trailer Bill. The next phase will be for AB 1840 and SB 874 to go to the full Assembly and Senate, respectively, and then to be signed by the Governor before final.

• The support will not eliminate our need to make difficult decisions as we right size and improve quality across OUSD. The state support is to address our structural deficit, allowing us  the time to institutionalize needed changes to keep students first as we address our structural deficit.

To read the full Proposal and/or Education Trailer Bill, please use the links below.

• School Districts in Financial Distress Proposal

• Education Trailer Bill (AB 1840) - Link with amendments

• Education Trailer Bill (AB 1840 and SB 874) - PDF

• Education Trailer Bill (AB 1840) as presented to Governor Brown - Highlights are relevant to OUSD

• Power point summary of Education Trailer Bill (AB 1840)

Click the image for a one page overview of AB 1840.

September 20, 2018

• OUSD leaders, along with Oakland’s state legislative representatives, held a press conference at La Escuelita K-8 School to discuss the recently passed AB 1840 Education Trailer Bill.
• Watch the video of press conference highlights. 

September 17, 2018

• Governor Jerry Brown signed the Education Trailer Bill, AB 1840!
• Read the OUSD Press Release
• View a powerpoint summary of the Education Trailer Bill, AB 1840
• Read the full Education Trailer Bill (AB 1840) as presented to Governor Brown (Highlights are relevant to OUSD)

August 31, 2018

• AB 1840 passed the Assembly and Senate. The next step for the Education Trailer Bill is to be signed by the Governor within 30 days.
• Read the full Education Trailer Bill (AB 1840 and SB 874)

August 15, 2018

• The Assembly and Senate Budget Committees passed the Department of Finance’s proposal for School Districts in Financial Distress as part of the Education Trailer Bill.