OUSD leaders call budget outlook 'positive' for first time in 22 years

Oakland Unified School District certified its latest budget update as “positive,” improving from prior “qualified” outlooks. District officials said the deficit is manageable and can be worked through with coordinated action. The district projected deficits of $37 million in 2026-2027 and $16 million in 2027-2028, requiring board-approved reductions of $30 million for each of those school years to keep the budget balanced. Some board directors questioned whether the “positive” certification was warranted because substantial cuts are still needed. Officials emphasized that reserves and ending fund balance are expected to be met, while still acknowledging the importance of the remaining deficit.

"“We are projecting we'll meet our reserves, we have a good ending fund balance, but we still have a deficit, and that's important. We can't forget that, but our deficit does seem to be manageable, and something that we can work through together if we decide that we are going to work together.”"

"“As of the third interim update presented this week, the district is projected to have a $37 million deficit in 2026-2027 and a $16 million deficit in 2027-2028. Gard, the deputy superintendent, said the board would therefore need to approve reductions of $30 million each for the 2026-2027 and 2027-2028 school years to keep the budget in balance.”"

"“In a split vote, the school board certified the latest budget update as 'positive,' an improvement from two decades of previous budget outlooks. In March and December, the board voted to pass the budget projections and send them on to the county as 'qualified,' meaning the district may or may not be able to cover its expenses this year and over the subsequent two academic years.”"

Read at The Oaklandside