Alameda County turns up the heat on OUSD to balance its budget

The Oakland Unified School District must devise a budget reduction plan by Oct. 1 to counteract ongoing deficit spending and ensure fiscal health. Alameda County Superintendent Alysse Castro has indicated the need for $80 million in reductions for the 2025-2026 school year. Interim Superintendent Denise Saddler has requested direction from the board by Oct. 8 regarding cuts for the 2026-2027 budget, which is still in development.

Currently, OUSD overspends by $4 million monthly, raising alarms among board members regarding the impact on students and families. A resolution introduced by board leaders identifies six areas to consider for cuts or revenue enhancements, including restructuring the central office and improving student attendance. Increasing attendance rates by just 1% could result in an additional $5 million in funding. While attendance has improved modestly, chronic absenteeism remains a critical issue, prompting a focus on reducing it by 3 percentage points this year. The urgency of these financial challenges underscores the need for immediate and effective action to stabilize the district's budget.