Education

Political Leaders Engineered State Control of Oakland Public Schools

Published

9 years ago

December 23, 2017

OUSD was required to borrow $100 Million when they only needed $37 Million. Assemblymember Sandre Swanson pressured state schools Supt. O’Conncell for three years, resulting in return of local control

State control of the Oakland Unified School District has changed its form over the years since the takeover in 2003 but remains a constant presence in determining policy in the public school system.

When the state fired Oakland Schools Supt. Dennis Chaconas and suspended the Board of Education in June 2003, some of the outlines of state control soon became clear: school closures, rapid growth of charter schools; attempts to sell school property to real estate developers and the lease of school sites to charter schools.

Always on the defensive, community groups have thwarted some of the school closures and several times prevented the sale of the district headquarters’ property to developers.

Aligned against the district in its fight for local control were East Senator Don Perata, president of pro tem of the State Senate, known for his connections to powerful developers; State Supt. of Public Instruction

Don Perata

Jack O’Connell, with ties to billionaire charter school advocate Eli Broad; former governor and then Mayor Jerry Brown, a close Perata ally; Sheila Jordan, Alameda County Superintendent of Schools: and the Fiscal Crisis and Management and Assistance Team (FCMAT), an organization based in Bakersfield that is funded by the state to intervene in school districts but is lacking in state oversight.

FCMAT was led by Tom Henry and Joel Montero.

While the state administrator ultimately was removed in 2009, a state trustee with power to rescind the district’s financial decisions remains in place.

The takeover was presented as a necessity designed to save the district from bankruptcy, but the reality remains very controversial and raises questions about the role of powerful political and economic interests.
Apparently forgotten was a previous unsuccessful takeover attempt promoted by Senator Perata even before the district uncovered an economic shortfall.

When the district became aware that it had overspent its budget in 2003, the OUSD administration developed a plan to maintain local control, which included borrowing money from construction funds reimbursed by the state. The district would then repay the money to itself.

“The use of the bond money in this way was approved by OUSD’s bond attorneys, who happened to be the bond attorneys for the State of California, and expert in their field,” according to Jesse Douglas Allen-Taylor, writing at the time for the Berkeley Daily Planet.

Many people said that “Mr. Perata was the driving force behind the 2003 state seizure of the Oakland public schools,” wrote Allen-Taylor.

Rather than approve the fund-borrowing transfer, then County Supt. of Schools Jordan asked for an opinion from State Attorney General Bill Lockyer, who declared the transfer illegal and blocked OUSD from using the money to balance the budget.

The district was forced to borrow $100 million rather than the $37 million it needed.
“In a mass community meeting later held at Allen Temple Baptist Church, Ms. Jordan defended her actions by saying that she could not allow the bond transfer because it was illegal,” according to Allen-Taylor.
When Jordan ran for reelection, she was criticized by her opponent Newark Superintendent of Schools John Bernard for her role in the takeover.

“Other county superintendents allow districts to use bond money as a loan when the district is going into the red,” Bernard told the press. “The incumbent, Sheila Jordan, did not allow Oakland to use the bond money, they went into default, and the state took over,” he said.
The political maneuvers behind the state takeover were suggested in an Oakland Tribune article written by then Tribune staff writer Robert Gammon, now editor of the East Bay Express.

“(Some) say office and cell phone records obtained by the Oakland Tribune provide evidence the takeover, and the resulting loss of local control of Oakland’s schools, was politically orchestrated,” Gammon wrote.
“The records show top officials from the Bakersfield-based Fiscal Crisis and Management Assistance Team (FCMAT) called Oakland Mayor Jerry Brown, the office of state Sen. Don Perata, D-Oakland, and then-Compton schools chief Randy Ward at least 40 times each in the months before the takeover,” according to Gammon.

Randolph Ward, a graduate of Eli Broad’s superintendent taining progarm, became the district’s first state administrator.
Brown and Perata had publically supported a takeover during the preceding year. They voiced support for “placing Ward and FCMAT in charge of the school district,” wrote Gammon.

Leading up to the takeover, FCMAT officials made no calls to the Oakland school leaders they were appointed to advise on how to solve the district’s financial problems.
The records show FCMAT officials did not call Supt. Chaconas or school board President Greg Hodge in the six months prior to the takeover, according to the Tribune.

“FCMAT (pronounced fick-mat) was supposed to be our fiscal advisers,” Hodge told the Tribune. He and Chaconas said FCMAT officials did not return their calls for months.
“They were supposed to be helping us. But instead they turned this into a political campaign to take over the district,” said Hodge.

Sheila Jordan in an interview with the Post disputed those who said the takeover was political.

Sheila Jordan

The district wanted to use facilities bond funds to pay off the shortfall, she said. “Many districts do that understanding that because those funds were passed by the voters to update and build schools, districts by law must establish their ability to repay what is a short-term loan.”

“Oakland did not have anywhere near the revenues to repay the bond loan. The hole in their budget was $27 million,” Jordan said.
“The investigation discovered a plug in the budget. It rolled over into the following year and resulted in close to a $65 million deficit,” she said. “I never did understand why the loan was $100 million.”

The analysis of the district’s finances was conducted by School Services of California, the Fiscal Crisis Management and Assistance Team (FCMAT) and Alameda County Office of Education “working together at the table,” she said.

“The Trib(une) reporting at that time was upholding a theory of action that was wholly discredited by the facts produced by the fiscal experts,” said Jordan.

Disagreeing with Jordan was Lewis Cohen, who served as an assistant superintendent in Dennis Chaconas’ administration at the time of the takeover.

“The 2003 state take-over was a largely political process. The $100-million-dollar loan was concocted by then County Superintendent Jordan’s experts and put into legislation by Senator Perata, as she seems to have conveniently forgotten,” he said.

“We lobbied against this legislation at the time, but Perata and his allies forced the loan on the school board by blocking the legal use of construction funds reimbursed by the state,” said Cohen.

“These were not bond funds and carried no legal restrictions at all, much less that the loan needed to be short-term,” Cohen added.
Direct state control of the school district was ended in 2009, due in part to the efforts of Assemblyman Sandre Swanson, wrote reporter Allen-Taylor at the time.

“Without Mr. Swanson’s dogged persistence on the Oakland school issue (for) three years, it is probable that local control would still be years away,” he wrote.

“Mr. O’Connell gave every indication that uncless he was forced to do so under pressure, he would hold onto the Oakland schools.”

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Asm. Corey Jackson Announces Launch of 24-Hour Childcare in His District

Assemblymember Corey Jackson has secured $2 million in state funding for a proposed childcare special district in Moreno Valley and Perris. This funding aims to establish a system providing 24-hour, seven-day-a-week childcare, which would be California’s first special district focused solely on childcare. The initiative seeks to address the area’s designation as a “childcare desert” and high costs for working families. The funding will cover startup, planning, and formation costs for the district. Read more about the specifics of this groundbreaking initiative.

Published

1 week ago

September 28, 2026

Post News Group

Assemblymember Corey Jackson (D-Moreno Valley). File photo.

By Bo Tefu, California Black Media

Assemblymember Corey Jackson (D-Moreno Valley) has secured $2 million in state funding to launch a proposed childcare special district serving families in Moreno Valley and Perris, paving the way for a system designed to provide childcare 24 hours a day, seven days a week.

The Moreno Valley-Perris Childcare Special District would be the first special district in California focused specifically on childcare, according to Jackson’s office. The state funding will cover startup, planning, and formation costs and help the district meet requirements set by the Riverside Local Agency Formation Commission, or LAFCO.

The proposed district would coordinate a mixed-delivery childcare system that could include home-based and center-based care. The goal is to provide universal childcare for families who work overnight, early morning, or other nontraditional shifts.

Jackson’s office says Moreno Valley is a certified “childcare desert,” with licensed childcare spaces available for only 15% of children with working parents. Infant care in Moreno Valley averages $2,776 a month, or about 35.7% of median household income. In Perris, licensed infant care can cost more than 60% of an individual worker’s gross median earnings, according to the assemblymember’s office.

“Securing this $2 million in startup funding is a monumental victory for the working-class families of Moreno Valley and Perris who have been trapped in a childcare desert for far too long,” Jackson said.

The proposal follows Jackson’s unsuccessful effort to establish the district through Assembly Bill 2083. The legislation would have created the district as a dependent special district covering Moreno Valley, Perris and their spheres of influence, with Riverside LAFCO responsible for reviewing its formation and boundaries.

The new funding allows the district’s formation to move forward without requiring mandatory contributions from local school districts and other stakeholders, according to Jackson’s office. His spokesperson, Daniel Peeden, said Jackson hopes the district can be operating by 2028.

The proposal has faced questions from some local officials. Moreno Valley City Councilmember Ed Delgado, who is running against Jackson for the 60th Assembly District seat, said he supports affordable childcare but questioned how the proposed district would operate and how much it would ultimately cost.

“Basically, he didn’t have a plan. We didn’t see a plan,” Delgado said, adding that officials had questions about operating costs, insurance and eligibility.

“It’s going to take a lot more than $2 million to create a special district to provide affordable childcare,” Delgado said.

Delgado has suggested working with existing childcare centers to subsidize costs for local families rather than creating a new agency.

Jackson’s office says the program will lower barriers to “workforce participation” and reduce “affordability anxiety” for young families. This landmark District is poised to trigger a virtuous cycle of economic upward mobility and long-term regional prosperity in the 60th Assembly District, his office added.

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Business

County Office of Education Says OUSD Finances Are Getting Healthier, Materially Stronger

The Oakland Unified School District’s recent budget submission has been deemed “materially stronger” by the Alameda County Office of Education, reflecting deliberate work by the new board and superintendent. Despite needing further cuts in the coming years, the district is progressing toward financial health, according to ACOE Superintendent Alysse Castro. This assessment counters critics who suggest a dire financial outlook for Oakland schools, acknowledging the district has made significant reductions and adopted a plan to address structural challenges. The ACOE commended the district’s efforts to get its financial house in order. Read more to learn about the details of these financial improvements.

Published

1 week ago

September 27, 2026

Post News Group

ACOE Supt. Alysse Castro; OUSD Supt. Dr. Denise Saddler. File photos.

By Ken Epstein

County’s letter counters critics who offer Doomsday scenarios for Oakland schools

The Oakland Unified School District, under the leadership of a new board majority and new superintendent, recently submitted a budget to the county “that is a materially stronger submission than the district has filed in recent years, (which) reflects difficult and deliberate work,” according to a letter to the district from Supt. Alysse Castro of the Alameda County Office of Education.

While OUSD still must make more budget cuts in the next two years, the district is on the road to financial health, according to a Sept. 15 letter from Castro to the district.

Under the California Education Code, Alameda County and other county offices of education (COEs) have the legal responsibility to review, approve, conditionally approve, or disapprove local school district annual budgets and interim financial reports.

“The Alameda County Office of Education wants to acknowledge that the district has submitted a budget that shows a positive fund balance, meets the state minimum reserve for economic uncertainty in each year of the multiyear project and is accompanied by a board-adopted commitment to close the remaining structural challenges,” the letter said.

“After two decades of state receivership and significant changes in OUSD’s budgeting practices,” it is understandable that there may be “considerable confusion” in the public about the district’s current financial condition, according to the letter.

However, the district’s current fiscal position and practices are “materially” better than prior years, though they “do not yet eliminate underlying structural challenges,” the letter continued.

Castro also commended the board and staff for working to get their financial house in order.

“There are three essential parts to addressing a structural deficit: staff must identify and bring

forward hard choices; the governing board must make those choices; and staff must follow

through and implement them,” she wrote.

“All three appear to be happening in OUSD, and that represents meaningful progress,” she wrote. “The district has made significant reductions to ongoing expenditures, increased its use of available restricted resources, and adopted a plan to address the remaining gap.”

According to the County, the district already has approved budget cuts of about $30 million in the current year. Additional reductions of about $30 million will be necessary next year, and another $11 million the following year.

These cuts are necessary, the county says, because “the district is still operating at a structural

deficit, meaning spending more every year than it brings in.”

In a statement released earlier this month, the district announced it had “finished the year with $170.1 million in its General Fund and an unrestricted reserve of $32.3 million, finishing $16.4 million ahead of what the district projected in March.”

The budget reflects progress toward putting the district in a stronger financial position to better serve students and families, said district leaders, while also acknowledging the need for significant reductions across the board.

“This turnaround happened because our board was willing to make difficult decisions rather than pass them along, and because our staff did the work,” said Supt. Dr. Denise Saddler. “None of this came easily, and there is more ahead of us. What these closed books show is that the direction is right.”

In October 2025, the board directed staff to prepare budget scenarios totaling $100 million in adjustments. In December, presented with a choice between borrowing to bridge the gap and making the reductions directly, the board chose the latter, the district statement said. As part of the reduction plan, the board approved cuts to more than 400 certificated and classified positions, along with a retirement incentive that converted some layoffs into voluntary departures.

“Closing our books is not the same as finishing the work, and we are not stopping here,” said Tara Gard,deputy superintendent of Business and Operations. “We will continue with the actions in our Financial Stabilization Plan because of where they lead.”

In a statement released on social media, Oakland Education Association (OEA) President

Kampala Taiz-Rancifer strongly criticized those who allege the district is collapsing and supported members of the school board majority who are working hard to stabilize the district’s finances while minimizing disruption for schools and employees.

Jennifer Brouhard (D2) and Valarie Bachelor (D6), who are running for reelection, “are moving the district toward a ‘materially stronger’ financial position than we’ve seen in recent years—all while investing in school sites and the employees who serve Oakland students,” she wrote.

“For years, we’ve heard billionaire-backed board members say they had to make ‘tough choices’ to balance the budget,” she continued. “Those choices almost always caused disruption and instability for our schools and communities. This is a different approach: financial stability alongside investments in students, schools, and workers. All in the effort to improve student outcomes.”

“The real hard work is tuning out the rage bait, the chaos agents, the attacks on unions and workers, and ignoring the loud corporate profiteers—and staying focused on what matters: improving outcomes for students while creating stable teaching and learning conditions,” said Taiz-Rancifer.

“Let’s not go backward into the days of manufactured panic.”

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Books

Oakland Mayor Reads to Children at Bookout Block Party at Marcus Books Store

Booths lined the street with arts and crafts, and children participated in hands-on art projects. A large display of books was on display and each child chose his/her free book to take home. Food and snacks were available, and free water was encouraged to keep all hydrated.

Published

2 weeks ago

September 22, 2026

Post News Group

(L.to R.) Cherysse Calhoun and Blanche Richardson of Marcus Books join Oakland Mayor Barbara Lee with Indya McGuffin and Bean Tupou of Storyland Collective inside the store on Sept. 12. Courtesy photo.

By Barbara Bauer, Special to The Post

Floating bubbles greeted families on arrival at the Bookout Block Party held on Sat. Sept. 12 at 39th and MLK Blvd. in Oakland.

Sponsored by Marcus Books and Storyland Collective, a wonderland of activity for children stretched to Longfellow School while live music filled the air, courtesy of KWC Complex Jazz Group.

A large area of turf was filled with huge bean bags for jumping, rolling, and sitting to listen as families crowded close to listen to Oakland Mayor Barbara Mayor Barbara Lee read a book out loud.

Of the numerous booths present were, “Claim Your Scholarship,” a program for Oakland Public School students and “VOLUNTEER NOW,” a program encouraging volunteers to help boost reading proficiency. Individuals sold their art and products. Free gifts were at many tables and a raffle was held.

The event with Marcus books culminated a summer-long program organized by Storyland Collective, a literacy arts organization bringing children’s ‘storytime,’ local authors, and art activities to Bay Area neighborhoods. Marcus Books is the oldest, independent Black-owned book store in the U.S., featuring books by and about Black people here and abroad.