Oakland Unified Closes a Decade of Fiscal Challenges with a Positive Third Interim Budget Report

Oakland — On May 27, 2026, the Oakland Unified School District Board of Education will vote on a recommended Positive Certification of the Third Interim Budget Report for the 2025-26 fiscal year, which is a milestone that marks a genuine turning point after years of fiscal distress, state oversight, and community sacrifice.

How the District Got Here: Budget-Balancing Work

OUSD had Qualified or Negative budget certifications for almost 22 straight years. At the start of the 2025-26 fiscal year, OUSD faced a projected deficit of approximately $100 million, a gap that would have triggered state intervention had it not been addressed. Through the combined effort of the District’s budget office and the Board’s willingness to adopt and sustain a Fiscal Solvency Implementation Plan adopted in December 2025, that gap is now at a more manageable level. The work is not finished, but the trajectory has changed.

The Third Interim also reflects the projected costs of the tentative agreement recently reached between OUSD and the Oakland Education Association (OEA), averting what could have been a significant strike. That means the agreement is now part of the financial picture that the Board will consider when it votes on the Third Interim.

“This is a moment of real pride for everyone who believes in Oakland Unified,” said Dr. Denise Saddler, Interim Superintendent. “Our students, our educators, our classified staff, and our families have carried extraordinary weight for a long time. Today’s projection is for them. It is proof that the sacrifices and the discipline and the hard choices have started to add up to something real. Oakland Unified is not out of the woods — but we are pointed in the right direction.”

Board President Jennifer Brouhard called the moment historic. “Our community has been waiting a long time to hear that their school district is on solid financial footing,” she said. “We did not get here by accident. We got here because the Board believes in public education and made hard decisions. The District’s team executed those decisions with discipline and precision. Our community held us accountable. The result of this rigorous work is worth celebrating, and it is a responsibility we do not take lightly.”

OUSD’s ability to sustain a positive budget certification through the 2028-29 Fiscal Year will depend entirely on three things: sustained fiscal discipline, full adherence to the Board-adopted budget-balancing plan, and continued progress on the remaining deficit as OUSD works toward durable structural balance.

“None of this is automatic,” Dr. Saddler adds. “Every number in this budget requires continuous district-wide discipline. We have come too far. Our community has sacrificed too much for us to backtrack now. We are accountable for keeping these commitments, and we will.”

The Board will vote on the Third Interim Report during a Special Board Meeting on May 27, 2026. To see the documents that will be used to explain the Third Interim, please visit our Legislative Information Center where the documents will be posted shortly. The District will provide regular public updates on fiscal progress and adherence to the plan.