Oakland (Special to ZennieReport.com) – More news on OUSD’s financial crisis. On Monday we received the 2024-25 Annual Report Regarding Fiscal Solvency of OUSD from the Alameda County Office of Education. It contains an executive summary, a narrative of key board decisions, and a conclusion. The executive summary is very similar to what I’ve been saying for months and states,
“the Board significantly and repeatedly deviated from its own budget-balancing timeline and plan, and is now in this same prcarious fiscal position with its 2025-26 Adopted Budget, requiring the board to once again approve and implement significant budget-balancing solutions.”
Below are some of the key points from the report and Ive attached the whole report.
This school board has failed in our fiduciary duty. We must take immediate action. The community needs to hold the school board majority accountable for the crisis they created.
WeAreOUSD
2024-25 Annual Report Regarding Fiscal Solvency of OUSD
California Education Code Section 1240(e) mandates that, by September 15th each year, the county superintendent of schools must submit a report to the school district’s governing board and the State Superintendent of Public Instruction detailing the fiscal solvency of any school
district within their county that has an disapproved budget, a qualified or negative interim certification, or is otherwise determined to be in a state of fiscal uncertainty.
Executive Summary:
OUSD’s adopted budget for 2024-25 planned for $87 million dollars in budget cuts, which had not yet been approved by the Board in order to meet required reserves, and therefore did not meet the state’s criteria for approval. In the Fall of 2024, OUSD minimally met conditions, and
ACOE approved the 2024-25 Adopted Budget, noting the necessity for significant further action to avoid future year insolvency. Throughout 2024-25, OUSD continued bargaining for ongoing compensation increases for employees, which compounds the need for additional
cuts in future years. OUSD self-certified as negative at First Interim, acknowledging the
intensity of the fiscal pinch point. An advisory team was convened to assist OUSD in accelerating progress on its Board-adopted recovery plan. During the spring of 2025, OUSD completed a fiscal systems audit and paid off its state loan, allowing the district to return to full local control for FY 2025-26. At the same time, over the course of 2024-25, the Board significantly and repeatedly deviated from its own budget-balancing timeline and plan, and is
now in this same prcarious fiscal position with its 2025-26 Adopted Budget, requiring the board to once again approve and implement significant budget-balancing solutions.
Board Action and Staff Recommendations – Re-envision, Redesign, and Restructure:
On August 14, 2024, the Board approved the Resolution to Re-envision, Redesign, and Restructure the District, 2024-2025 Fiscal Year, aka 3R’s. This resolution directed the District’s Superintendent, with support of the Board, to develop a plan for the restructuring of OUSD by June of 2025, to be implemented beginning in the 2025-26 school year. The plan was to
include restructuring of staffing formulas and site allocations for schools, restructuring of the CSI Division, and restructuring of business/operations. In addition, the Resolution committed the school board, with the support of staff, to lead a citywide re-envisioning process in 2024-25 to provide recommendations for OUSD’s future footprint by June 2025.
On February 26, 2025, the Board approved Resolution 2425-0081 Notice of Layoff: Classified Employees – Reduction in Force (RIF) Due to Lack of Funds and/or Lack of Work for 2025-26. Exhibit A listed the changes that were approved, which resulted in an i ncr ease for 2025-26 of 23.45 FTE.
Also on February 26, 2025, the Board approved Resolution 2425-0082 to Eliminate Certificated Positions Due to a Reduction of Particular Kinds of Service (PKS). The associated Exhibit A listing the position changes for 2025-26 resulted in a reduction of 117.08 FTE.
On March 18, 2025, the Board approved Resolution 2425-0083 establishing an ad hoc “Control over Outsourcing” task force. This task force, comprised largely of one member from each of the District’s bargaining units, one member from each of the PSAC committees, one Board member, and two District staff members, would begin meeting no later than April 1, 2025, andthen meet every other month, reporting quarterly to the Board with recommendations.
On March 26, 2025, the Board approved Resolution 2425-0084 Directing Alternative Budget Adjustments for 2024-25 through 2026-27. These alternative budget adjustments included capping expenditures on Services & Contracts, confidential salary expenditures, and unrestricted expenditures on Books & Supplies. The following day, the Fiscal Trustee stayed this board action, but lifted the stay on April 8, 2025. After the staff began to implement the Resolution, there was significant public pressure and testimony regarding negative, unintended
consequences, resulting in the Board repealing the Resolution on May 21, 2025.
On June 25, 2025, the Board adopted Resolution 2425-0081A, which amended the RIF Resolution for Classified Employees for 2025-26, and Resolution 2425-0082A, which amended the PKS Resolution for Certificated Employees, which were adopted in February. The effect of these amendments is to increase the overall number of authorized classified and certificated positions, as reflected in Exhibits B, as many positions were restored and additional FTE authorized.
Conclusion:
Oakland Unified School District enters Fiscal Year 2025-26 under full local control for the first time in a generation; however, the same fiscal and decision-making issues that have plagued the district for many years remain.
2024-25 Annual Report Regarding Fiscal Solvency of Oakland USD FINAL
2024-25 Annual Report Regarding Fiscal Solvency of Oakland USD FINAL by Zennie Abraham