The Oakland Unified School District (OUSD) Board of Education has taken steps to address ongoing financial challenges by directing the Superintendent to develop options for balancing the district’s budget. At a board meeting held Wednesday night, the Board provided guidance and established a framework for creating scenarios that will close an anticipated $100 million shortfall.
The district has been operating with a deficit, spending about $4 million more each month than it receives in revenue. This pattern is depleting its reserves and could bring the fund balance below the state-mandated 2% reserve level by the end of the fiscal year. According to district officials, continuing this trend without intervention would worsen the situation next year.
Last month, the Alameda County Superintendent of Schools conditionally approved OUSD’s budget for 2025-26, requiring significant restructuring and a clear timeline and plan to address projected deficits. The county’s directive includes addressing both current and future shortfalls.
Under the new framework adopted by the Board, staff are instructed to prepare two options for making $100 million in adjustments for the 2026-27 school year. These options are scheduled for review at a study session on November 19. The Board emphasized that school mergers or closures are off the table and that staff working directly with students should be protected.
Additional directives include restructuring central services and school networks, strengthening fiscal controls, and evaluating programs and services for potential reductions over the next two years. The Board also reaffirmed its commitment to maintaining a 3% reserve, calling for actions such as contract freezes, consolidated purchases, and assessing the impact of a hiring freeze that was implemented after the meeting.
District staff are required to present their proposed options at the November 19 study session. The County Superintendent will review OUSD’s progress and decide by November 8 whether to formally approve or disapprove the district’s 2025-26 budget. Planning for the following year’s budget will continue into winter and spring, with final decisions expected in June.
Community input is being sought as part of this process. OUSD will hold engagement sessions, including meetings at Carl B Munck Elementary School and via Zoom, where students, families, staff, and community partners can provide feedback on priorities and potential cuts.
Lisa Grant-Dawson, Chief Business Officer, stated, “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.”
Grant-Dawson also emphasized community involvement: “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.”
Further engagement opportunities will be announced as OUSD works through its budget planning process.
