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State Fiscal Austerity Agency Says 11 School Districts Face Similar Fate as OUSD

It is now becoming clear to many local education advocates that under FCMAT, the state’s enforcer, or the whip hand of education austerity, K-12 school districts and community colleges statewide are being threatened with cuts, layoffs, and the possibility of loss of local control, even while the state is awash in an almost $50 billion surplus.

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FCMAT CEO Michael Fine.
FCMAT CEO Michael Fine.

West Contra Costa Unified School Board Defies FCMAT demand to lay off teachers.

By Ken Epstein

The financial austerity arm overseeing public education in California, the Fiscal Crisis Management and Assistance Team (FCMAT), has performed a behind-the-scenes role determining budgets, repeated cutbacks, layoffs, and the closures of 21 schools since they moved into Oakland along with the state receiver in 2003.

One district, West Contra Costa Unified, recently defied pressure from a FCMAT spokesman to lay off school staff, voting against the layoff recommendation proposed by the district administration.

It is now becoming clear to many local education advocates that under FCMAT, the state’s enforcer, or the whip hand of education austerity, K-12 school districts and community colleges statewide are being threatened with cuts, layoffs, and the possibility of loss of local control, even while the state is awash in an almost $50 billion surplus.

Every year, the California Legislature appropriates funding for FCMAT’s operation, providing most of the nonprofit agency’s financial support. Over the years, FCMAT’s scope has expanded, but it remains an extra-governmental agency, not subject to typical governmental oversight. Formed by the state in 1991, FCMAT’s authority has evolved as new state laws were passed.

Oakland Unified is not the only public school system labeled by FCMAT to be a “lack of going concern,” which FCMAT defines as a “message that a district is in jeopardy of not being able to continue on its own.”

At present, FCMAT says that there are 11 school districts in California “that have been designated as a ‘lack of going concern’ in 2021 for a variety of budget and non-budget concerns.”

These districts are Bellflower USD, Curtis Creek ESD, East San Gabriel Valley ROP, Loleta Union SD, Montebello USD, Oakland USD, Sacramento City USD, San Bruno Park USD, San Francisco COE, San Francisco USD and Sonora ESD, according to a report published Feb. 2 by FCMAT to the State Senate Budget and Fiscal Review Subcommittee.

Looking at “solvency trends,” FCMAT’s report cites a number of financial difficulties, which many see as connected to the pandemic crisis or ongoing insufficient state funding. FCMAT says the most common reason for less-than-satisfactory certifications of fiscal health “is declining enrollment.”

Other negative conditions include:

  • Decreased attendance rates
  • Expiring one-time funds.
  • Inflationary cost increases.
  • Increasing staff pension contribution rates

However, the report admits that Gov. Gavin Newsom’s Jan. 10 budget proposal could eliminate the “lack of going concern designation” for 50% of the districts on the list.

In addition, five Community College systems are on FCMAT’s “Distress or Watch List.”

Districts considered in distress are Gavilan in San Benito, Napa Valley in Napa and Peralta in Alameda. City College of San Francisco is on the watch list, and Compton in Los Angeles is categorized as in a borderline state of “Transition Planning.”

Although Richmond schools were not on FCMAT’s list, the West Contra Costa Unified School District (WCCUSD) is experiencing FCMAT’s heavy hand.

FCMAT CEO Michael Fine showed up at the school board meeting March 9 to support the administration’s proposal to lay off teachers and other school staff this year. Fine told the Board that the district has a choice to accept the cuts, or the Contra Costa County Superintendent of Schools will first declare a “Lack of Going Concern” and appoint an “advisor” to review the district’s budget and suggest changes.

If the board continues to refuse to make cuts, an overseer would be appointed with the right to veto WCCUSD financial decisions. If the board still ignores the ‘recommendations,’ the state could take over and give the WCCUSD a loan.

“A state loan is disastrous — it’s not good for the community, and it’s not good for the school district,” Fine told the Board, explaining that along with the loan, the superintendent would be dismissed, and the Board would lose its ability to govern. A state-imposed administrator would act as both the Board and superintendent.

Despite those threats, the Board voted 3-2 not to issue the layoffs, responding to pressure from employee unions. View the WCCUSD board meeting at www.youtube.com/watch?v=0kNZpHPM3yE

WCCUSD has a long history of dealing with FCMAT and state intervention. Formerly known as Richmond Unified, the district was under state control from April 1990 to June 2012.

According to officials, the takeover was the “salvation” of the district, keeping it from going bankrupt at that time. “But state control…was the polar opposite of salvation,” according to former school Board President Charles Ramsey, who served on the board during that time.

During the takeover, the district enforced pay cuts, mid-year elimination of enrichment courses and athletic programs, closed libraries and paid $2 million in annual loan payments at 6% interest. The community responded with a 75-mile protest march on Sacramento in 2004, with some participants holding a hunger strike.

“You have this shadow overlooking you,” Ramsey said in an interview in 2012 with the California School Board Association blog. “We barely survived, but we’re pleased that we’re now through it.”

Future articles will examine FCMAT’s impact on schools in Inglewood and San Francisco, as well as on San Francisco City College, which faces layoffs of 50 full-time faculty members.

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Oakland Post: Week of December 31, 2025 – January 6, 2026

The printed Weekly Edition of the Oakland Post: Week of – December 31, 2025 – January 6, 2026

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Big God Ministry Gives Away Toys in Marin City

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grow up.

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From top left: Pastor David Hall asking the children what they want to be when they grow up. Worship team Jake Monaghan, Ruby Friedman, and Keri Carpenter. Children lining up to receive their presents. Photos by Godfrey Lee.
From top left: Pastor David Hall asking the children what they want to be when they grow up. Worship team Jake Monaghan, Ruby Friedman, and Keri Carpenter. Children lining up to receive their presents. Photos by Godfrey Lee.

By Godfrey Lee

Big God Ministries, pastored by David Hall, gave toys to the children in Marin City on Monday, Dec. 15, on the lawn near the corner of Drake Avenue and Donahue Street.

Pastor Hall also gave a message of encouragement to the crowd, thanking Jesus for the “best year of their lives.” He asked each of the children what they wanted to be when they grew up.

Around 75 parents and children were there to receive the presents, which consisted mainly of Gideon Bibles, Cat in the Hat pillows, Barbie dolls, Tonka trucks, and Lego building sets.

A half dozen volunteers from the Big God Ministry, including Donnie Roary, helped to set up the tables for the toy giveaway. The worship music was sung by Ruby Friedman, Keri Carpenter, and Jake Monaghan, who also played the accordion.

Big God Ministries meets on Sundays at 10 a.m. at the Mill Valley Community Center, 180 Camino Alto, Mill Valley, CA Their phone number is (415) 797-2567.

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First 5 Alameda County Distributes Over $8 Million in First Wave of Critical Relief Funds for Historically Underpaid Caregivers

“Family, Friend, and Neighbor caregivers are lifelines for so many children and families in Alameda County,” said Kristin Spanos, CEO, First 5 Alameda County. “Yet, they often go unrecognized and undercompensated for their labor and ability to give individualized, culturally connected care. At First 5, we support the conditions that allow families to thrive, and getting this money into the hands of these caregivers and families at a time of heightened financial stress for parents is part of that commitment.”

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Costco. Courtesy image.
Costco. Courtesy image.

Family, Friend, and Neighbor Caregivers Can Now Opt Into $4,000 Grants to Help Bolster Economic Stability and Strengthen Early Learning Experiences

By Post Staff

Today, First 5 Alameda County announced the distribution of $4,000 relief grants to more than 2,000 Family, Friend, and Neighbor (FFN) caregivers, totaling over $8 million in the first round of funding. Over the full course of the funding initiative, First 5 Alameda County anticipates supporting over 3,000 FFN caregivers, who collectively care for an estimated 5,200 children across Alameda County. These grants are only a portion of the estimated $190 million being invested into expanding our early childcare system through direct caregiver relief to upcoming facilities, shelter, and long-term sustainability investments for providers fromMeasure C in its first year. This investment builds on the early rollout of Measure C and reflects a comprehensive, system-wide strategy to strengthen Alameda County’s early childhood ecosystem so families can rely on sustainable, accessible care,

These important caregivers provide child care in Alameda County to their relatives, friends, and neighbors. While public benefits continue to decrease for families, and inflation and the cost of living continue to rise, these grants provide direct economic support for FFN caregivers, whose wages have historically been very low or nonexistent, and very few of whom receive benefits. As families continue to face growing financial pressures, especially during the winter and holiday season, these grants will help these caregivers with living expenses such as rent, utilities, supplies, and food.

“Family, Friend, and Neighbor caregivers are lifelines for so many children and families in Alameda County,” said Kristin Spanos, CEO, First 5 Alameda County. “Yet, they often go unrecognized and undercompensated for their labor and ability to give individualized, culturally connected care. At First 5, we support the conditions that allow families to thrive, and getting this money into the hands of these caregivers and families at a time of heightened financial stress for parents is part of that commitment.”

The funding for these relief grants comes from Measure C, a local voter-approved sales tax in Alameda County that invests in young children, their families, communities, providers, and caregivers. Within the first year of First 5’s 5-Year Plan for Measure C, in addition to the relief grants to informal FFN caregivers, other significant investments will benefit licensed child care providers. These investments include over $40 million in Early Care and Education (ECE) Emergency Grants, which have already flowed to nearly 800 center-based and family child care providers. As part of First 5’s 5-Year Plan, preparations are also underway to distribute facilities grants early next year for child care providers who need to make urgent repairs or improvements, and to launch the Emergency Revolving Fund in Spring 2026 to support licensed child care providers in Alameda County who are at risk of closure.

The FFN Relief Grants recognize and support the essential work that an estimated 3,000 FFN caregivers provide to 5,200 children in Alameda County. There is still an opportunity to receive funds for FFN caregivers who have not yet received them.

In partnership with First 5 Alameda County, Child Care Payment Agencies play a critical role in identifying eligible caregivers and leading coordinated outreach efforts to ensure FFN caregivers are informed of and able to access these relief funds.FFN caregivers are eligible for the grant if they receive a child care payment from an Alameda County Child Care Payment Agency, 4Cs of Alameda County, BANANAS, Hively, and Davis Street, and are currently caring for a child 12 years old or younger in Alameda County. Additionally, FFN caregivers who provided care for a child 12 years or younger at any time since April 1, 2025, but are no longer doing so, are also eligible for the funds. Eligible caregivers are being contacted by their Child Care Payment Agency on a rolling basis, beginning with those who provided care between April and July 2025.

“This money is coming to me at a critical time of heightened economic strain,” said Jill Morton, a caregiver in Oakland, California. “Since I am a non-licensed childcare provider, I didn’t think I was eligible for this financial support. I was relieved that this money can help pay my rent, purchase learning materials for the children as well as enhance childcare, buy groceries and take care of grandchildren.”

Eligible FFN caregivers who provided care at any time between April 1, 2025 and July 31, 2025, who haven’t yet opted into the process, are encouraged to check their mail and email for an eligibility letter. Those who have cared for a child after this period should expect to receive communications from their child care payment agency in the coming months. FFN caregivers with questions may also contact the agency they work with to receive child care payments, or the First 5 Alameda help desk, Monday through Friday, from 9 a.m. to 5:00 p.m. PST, at 510-227-6964. The help desk will be closed 12/25/25 – 1/1/26. Additional grant payments will be made on a rolling basis as opt-ins are received by the four child care payment agencies in Alameda County.

Beginning in the second year of Measure C implementation, FFN caregivers who care for a child from birth to age five and receive an Alameda County subsidized voucher will get an additional $500 per month. This amounts to an annual increase of about $6,000 per child receiving a subsidy. Together with more Measure C funding expected to flow back into the community as part of First 5’s 5-Year Plan, investments will continue to become available in the coming year for addressing the needs of childcare providers in Alameda County.

About First 5 Alameda County

First 5 Alameda County builds the local childhood systems and supports needed to ensure our county’s youngest children are safe, healthy, and ready to succeed in school and life.

Our Mission

In partnership with the community, we support a county-wide continuous prevention and early intervention system that promotes optimal health and development, narrows disparities, and improves the lives of children from birth to age five and their families.

Our Vision

Every child in Alameda County will have optimal health, development, and well-being to reach their greatest potential. 

Learn more at www.first5alameda.org.

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