Time is running out for the OUSD board to rein in spending

The Oakland Unified School District board approved its 2025–2026 budget amid warnings of potential insolvency without necessary spending reforms. Chief business officer Lisa Grant-Dawson emphasized the urgency of addressing the district’s structural deficit as they exit state receivership. The budget includes a 2. 9% reserve, just shy of the district's 3% policy, leaving only $329,000 for discretionary spending. Board member Mike Hutchinson raised alarms about the lack of funds for unforeseen expenses, which could jeopardize district operations.

Community organizations have urged the board to enhance transparency in financial decisions. Grant-Dawson is expected to present a revised budget in the fall, and if no changes are made, a $78 million deficit looms for the 2026–2027 school year. Alameda County Superintendent Alysse Castro noted that despite improved fiscal controls, longstanding issues remain, including declining enrollment and deferred maintenance. The board has previously faced backlash over proposals to consolidate schools and cut private contracts, highlighting the challenge of balancing fiscal responsibility with community needs.