Oakland Unified outlines plan to stabilize finances; community protests potential school‑site cuts

Oakland Unified interim Superintendent Sadler told the school board on Jan. 28 the district’s Financial Stabilization Implementation Plan is ‘‘about protecting equity, maintaining local control, and prioritizing students.’’ She introduced a senior leadership team and consultants from Hazard, Young & Associates (HYA) who detailed a mix of cuts, one‑time savings and fund realignments aimed at addressing a multi‑year structural deficit the staff and consultants estimated at roughly $102 million.

Nut graf: The plan proposes restoring the district’s reserve to roughly 3 percent and identifies more than $50 million in sustainable adjustments so far — a combination of central‑office reductions, reallocations to the most restricted allowable funding sources, and one‑time savings. Still, board members and hundreds of public commenters pressed for specifics on how shifts of supplemental and concentration (S & C) dollars would affect school‑level services and special education compliance before the board takes final action Feb. 25.

HYA consultant Dr. Ruben Futros told the board the team had used a combination of targeted reductions and allowable funding shifts to change earlier projections that once showed a $100 million gap. ‘‘A combination of reductions and allowable shifts,’’ he said, ‘‘we were able to reduce the earlier projected deficit in ’25‑’26 from approximately $100 million to about $50 million’’ while restoring the reserve needed to avoid a negative certification.

District staff said the priorities set by the board — no school closures, deeper central‑office reductions than at school sites, and protecting small neighborhood schools — shaped their choices. The plan describes about $8 million in current‑year spending reductions, roughly $18 million in reallocations this year, and identifying $26.5 million in ongoing reallocations for 2025‑26 with additional steps for 2026‑27 to build toward a structurally balanced budget.

Public comment: More than 60 speakers addressed the board across two public‑comment blocks. Teachers, school principals, parents and union leaders asked the district to prioritize classroom staff and to resume timely bargaining with labor partners. The United Educators and SEIU speakers said delays in bargaining are fueling unrest; SEIU’s speaker summarized the union stance: ‘‘If you truly want to support our students, you will support a student‑centered budget, and you will support labor.’’ Parents and principals warned that moving S & C funds without clear line‑item detail could strip schools of counselors, community school managers and elective programs that they say are essential.

Board reaction and process: Directors asked staff for more specificity and a schedule: staff said more details will be provided at the Feb. 11 board meeting and that final action on reductions must occur by Feb. 25 to meet March 15 staffing‑notice timelines. Several directors pressed for clarity about which expenses can legally be charged to restricted funding and how the district will remain compliant with federal and state rules, especially for special education maintenance‑of‑effort requirements.

Audit context: The board heard the independent audit for year ending June 30, 2025, which gave a clean opinion on the financial statements but included a going‑concern disclosure intended to signal fiscal risk to outside users; the auditor emphasized this is an alert to outside stakeholders rather than a technical internal control failure.

What’s next: Staff said they will continue community engagement, hold additional committee meetings and post further line‑item detail on Feb. 11 ahead of a Feb. 25 action item. The board chair scheduled further public forums; community leaders urged those sessions be sufficient to produce transparent, defensible decisions before reductions are finalized.