County’s letter counters critics who offer Doomsday scenarios for Oakland schools
The Oakland Unified School District, under the leadership of a new board majority and new superintendent, recently submitted a budget to the county “that is a materially stronger submission than the district has filed in recent years, (which) reflects difficult and deliberate work,” according to a letter to the district from Supt. Alysse Castro of the Alameda County Office of Education.
While OUSD still must make more budget cuts in the next two years, the district is on the road to financial health, according to a Sept. 15 letter from Castro to the district.
Under the California Education Code, Alameda County and other county offices of education (COEs) have the legal responsibility to review, approve, conditionally approve, or disapprove local school district annual budgets and interim financial reports.
“The Alameda County Office of Education wants to acknowledge that the district has submitted a budget that shows a positive fund balance, meets the state minimum reserve for economic uncertainty in each year of the multiyear project and is accompanied by a board-adopted commitment to close the remaining structural challenges,” the letter said.
“After two decades of state receivership and significant changes in OUSD’s budgeting practices,” it is understandable that there may be “considerable confusion” in the public about the district’s current financial condition, according to the letter.
However, the district’s current fiscal position and practices are “materially” better than prior years, though they “do not yet eliminate underlying structural challenges,” the letter continued.
Castro also commended the board and staff for working to get their financial house in order.
“There are three essential parts to addressing a structural deficit: staff must identify and bring
forward hard choices; the governing board must make those choices; and staff must follow
through and implement them,” she wrote.
“All three appear to be happening in OUSD, and that represents meaningful progress,” she wrote. “The district has made significant reductions to ongoing expenditures, increased its use of available restricted resources, and adopted a plan to address the remaining gap.”
According to the County, the district already has approved budget cuts of about $30 million in the current year. Additional reductions of about $30 million will be necessary next year, and another $11 million the following year.
These cuts are necessary, the county says, because “the district is still operating at a structural
deficit, meaning spending more every year than it brings in.”
In a statement released earlier this month, the district announced it had “finished the year with $170.1 million in its General Fund and an unrestricted reserve of $32.3 million, finishing $16.4 million ahead of what the district projected in March.”
The budget reflects progress toward putting the district in a stronger financial position to better serve students and families, said district leaders, while also acknowledging the need for significant reductions across the board.
“This turnaround happened because our board was willing to make difficult decisions rather than pass them along, and because our staff did the work,” said Supt. Dr. Denise Saddler. “None of this came easily, and there is more ahead of us. What these closed books show is that the direction is right.”
In October 2025, the board directed staff to prepare budget scenarios totaling $100 million in adjustments. In December, presented with a choice between borrowing to bridge the gap and making the reductions directly, the board chose the latter, the district statement said. As part of the reduction plan, the board approved cuts to more than 400 certificated and classified positions, along with a retirement incentive that converted some layoffs into voluntary departures.
“Closing our books is not the same as finishing the work, and we are not stopping here,” said Tara Gard,deputy superintendent of Business and Operations. “We will continue with the actions in our Financial Stabilization Plan because of where they lead.”
In a statement released on social media, Oakland Education Association (OEA) President
Kampala Taiz-Rancifer strongly criticized those who allege the district is collapsing and supported members of the school board majority who are working hard to stabilize the district’s finances while minimizing disruption for schools and employees.
Jennifer Brouhard (D2) and Valarie Bachelor (D6), who are running for reelection, “are moving the district toward a ‘materially stronger’ financial position than we’ve seen in recent years—all while investing in school sites and the employees who serve Oakland students,” she wrote.
“For years, we’ve heard billionaire-backed board members say they had to make ‘tough choices’ to balance the budget,” she continued. “Those choices almost always caused disruption and instability for our schools and communities. This is a different approach: financial stability alongside investments in students, schools, and workers. All in the effort to improve student outcomes.”
“The real hard work is tuning out the rage bait, the chaos agents, the attacks on unions and workers, and ignoring the loud corporate profiteers—and staying focused on what matters: improving outcomes for students while creating stable teaching and learning conditions,” said Taiz-Rancifer.
“Let’s not go backward into the days of manufactured panic.”
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