Education
OUSD Receives State Review of District Finances; Outlines Progress Since January
The Fiscal Crisis and Management Assistance Team has released a Fiscal Health Risk Analysis for the Oakland Unified School District, labeling the district at high risk for insolvency based on January data. Despite this designation, the Alameda County Office of Education recently noted that OUSD has produced a materially stronger budget submission than in previous years. Superintendent Dr. Denise Saddler stated that the district is actively working to balance its budget and address specific state findings to ensure long-term stability. Find out more about the district’s recovery plan and the challenges facing other California schools by reading more.
Alameda County Office of Education has called the budget ‘a materially stronger submission than the district has filed in recent years’
Caption: Dr. Denise Saddler. Courtesy photo.
The Fiscal Crisis and Management Assistance Team (FCMAT), the state-funded nonprofit in charge of advocating for budget cuts and school closures in local school districts, on Thursday released its Fiscal Health Risk Analysis (FHRA) of Oakland Unified School District.
FCMAT initiated the review after the Alameda County Superintendent of. Schools issued a ‘Notice of Going Concern’ last April. Basing its analysis on the district’s 2025-26 Second Interim Report which reflects financial data as of Jan. 31, FCMAT rated the district’s risk for fiscal insolvency as “high.”
But a later review of the district’s financial reports demonstrated faith in OUSD to turn things around. In its Sept. 15 letter conditionally approving the district’s budget, the Alameda County Office of Education called the budget “a materially stronger submission” than the district has filed in recent years.”
The County Office of Education noted that closing a structural deficit requires staff to bring forward hard choices, that the Board make them, and staff to carry them out. The county found all three appear to be happening in OUSD. The district is rebuilding the reserves it needs to remain stable, and it still has challenging work ahead.
The district’s progress reflects difficult choices by the Board of Education and staff. In June, the board adopted one plan for the district’s financial recovery and approved the 2026-27 budget.
Emphasizing how much progress the district has made in the last few years, OUSD Superintendent Dr. Denise Saddler said, “We are working to balance our budget and fund the programs that show results for our children. FCMAT’s findings are part of that work, and we will address the findings in the report.”
Oakland is not alone under state scrutiny. This year, FCMAT also rated 11 other districts, including San Francisco, Los Angeles, Antioch,
Burbank, Saddleback Valley, Petaluma, San Ysidro, Rincon Valley Union, Pleasanton, Santa Rosa, and Pacifica as high risk for fiscal insolvency.
Those districts range from a 2,600-student elementary district to the second-largest school system in the nation. Across these districts, FCMAT found many of the same pressures: compensation growing faster than revenues, rising special education costs, declining enrollment, and budgets that count on reductions not yet named.
That pattern points to the challenge facing public schools across California, and Oakland Unified intends to help lead the response, according to a district press statement.
California districts are navigating the challenges of a rapidly changing state and an evolving educational landscape. As one of California’s most diverse urban school districts, Oakland Unified faces these pressures with a distinct responsibility to the students, families, and communities it serves. While standing in solidarity with districts statewide, according to OUSD.
Oakland Unified remains steadfast in its commitment to educational equity, innovation, and student achievement, demonstrating that even in the face of significant challenges, its mission to provide every student with a high-quality education remains unwavering, the district said.
