OUSD Board of Education Takes Critical Step in Budget Balancing Process

Dear Oakland Unified Community,

During the Wednesday night board meeting, the Board provided the Superintendent with needed guidance and a framework within which to develop options for addressing our existing and near-term financial shortfalls. So, the extremely difficult work for the District’s staff to develop balanced budget scenarios begins - with as much input from the OUSD community as possible over the next two months.

How we got here

As we have been saying for over a year now, we are deficit spending (spending more money than the revenues we are bringing in) an average now of about $4 million per month. That is draining our reserve, or rainy day savings account, and threatening to leave us below the state-mandated 2% reserve level at the end of this fiscal year. And, things would be significantly worse next year if the Board did nothing and continued this pattern of deficit spending. 

Last month, the Alameda County Superintendent of Schools sent this conditional approval letter to the District, saying the Board is required to begin significant restructuring of the District to obtain the approval of our existing budget for the 2025-26 school year. The overarching requirement from the County Superintendent is to provide a “timeline and plan” to address all the concerns raised in the letter including expected budget shortfalls this year and next. All the budget balancing solutions needed would produce a total savings of roughly $100 million.

What the Board vote means

• The Board adopted a framework within which staff is to prepare two options to make $100 million in budget adjustments for the 2026-27 school year for review in a study session on November 19.
• The framework makes it clear that the merging or closing of any school will not be included in the options, and that protection of school staff who work directly with students will be prioritized.
• The Board also directed staff to restructure central services and school networks, strengthen fiscal controls, and identify and assess programs and services that could be reduced in 2025-26 and 2026-27.
• The proposed mid-year adjustments direct the District to reconsider some of the planned investments impacting operations, programs, and services.
• The Board further recommitted to its policy of a 3% reserve and directed staff to take several actions to realize that goal, including contract freezes, consolidating purchases, and evaluating the impact of a hiring freeze that took effect after the Board meeting.
• We invite you to read the full resolution here.

What happens next

• District staff must present the identified options for a Board study session on November 19.
• The County Superintendent will review the District’s actions to date and determine by November 8 whether to formally approve or disapprove OUSD’s 2025-26 budget.
• Planning for the 2026-27 budget will continue this winter and spring with the expectation that specific options will be approved and incorporated into the final 2026-27 budget in June.

This is where the community comes in. The Board of Education and District staff need input from students, families, staff, and community partners about what is most necessary for the education of our students, and what can be eliminated to save money. Over the next several months, there will be lots of opportunities for you to share your feedback with District staff and the Board, collectively or at individual Board Director engagements. 

Here are two opportunities to share your voice next week:

OUSD Budget Engagement with Board President Brouhard & Vice President Bachelor 

Wednesday, Oct. 15

4:30 - 6:00 p.m.

Carl B Munck Elementary School (11900 Campus Dr.)

Food and entertainment for kids will be provided

LCAP PSAC Meeting - to learn more of the details of the October 8 Board Vote

Wednesday, Oct. 15

5:30 - 8:00 p.m.

Zoom Link

Meeting ID: 868 3138 9269 

By Phone: 1-669-900-9128

All are welcome!

Additional engagement opportunities will be shared regularly. We look forward to engaging with everyone in our community, and hearing all input to generate the best options and decisions as we steer the District through another challenging moment in our history.

In community,

Lisa Grant-Dawson
Chief Business Officer