Oakland Unified School District (OUSD) presented its First Interim Report to the Board of Education, confirming a projected $100 million unrestricted deficit. The report, delivered at a recent board meeting, indicated that without changes, the district will not meet its financial obligations in the next school year. The Business Office recommended a negative certification for the report, but the Board instead adopted a qualified certification. This status means OUSD may not meet its financial obligations over the next two years.
Superintendent Dr. Denise Saddler previously warned about the district’s ongoing budget issues. The latest report shows that OUSD continues to spend more than it receives in revenue and is drawing down savings below required levels. “Given that the vast majority of our budget goes to pay staff, there is no way to make $100 million in adjustments without impacting people, and by extension, how the District does business, especially the business of educating children,” stated district officials.
During the same meeting, the Board approved several budget-balancing scenarios provided by Dr. Saddler. These include significant changes to staffing levels and are expected to produce up to $103 million in potential budget solutions for the 2026-27 school year—the largest one-year budget shift in OUSD history.
The Board had previously directed Superintendent Saddler to keep reductions away from schools as much as possible. However, officials said it is impossible to make such large adjustments—amounting to 20% of the unrestricted general fund—without affecting schools. The approved plan includes a 7.5%–10% reduction in school site budgets and likely job eliminations due to already lean operations.
District leaders cautioned that starting next year, OUSD schools will operate differently than before: “Some programs will be reduced or eliminated. Many services will be slowed or operate at a reduced capacity.” While restructuring aims for long-term sustainability and student success, immediate steps are needed to address current fiscal realities.
Superintendent Saddler will lead efforts over the coming months to determine which positions and programs will be affected and how best to move forward while prioritizing students’ education: “All that work will take place with the education of our children held as our North Star, guiding us to ensure we protect them first and foremost.”
