Oakland school district will offer buyouts to senior employees

Oakland Unified School District aims to address a $100 million budget deficit by implementing an early retirement incentive for staff aged 55 and older. The board approved a plan that allows eligible employees to resign by June 30, 2026, in exchange for 75% of their final salary paid into a tax-sheltered annuity over five years. While five board members supported the initiative, Mike Hutchinson opposed it, emphasizing the need to confront the district's financial challenges more directly. With 1,066 employees eligible, savings could reach millions if a quarter opt for early retirement, especially if their positions are not replaced. A fiscal analysis will be conducted in February to evaluate the plan's effectiveness.

The board plans to present budget scenarios next week that will ensure at least $100 million in cuts while avoiding school closures. Board President Jennifer Brouhard defended the board’s approach, stating it reflects a framework for informed decision-making. The district faces ongoing financial pressures due to historical decisions impacting its budget.