Alameda County Office of Education conditionally approved Oakland Unified School District's 2026-27 budget on Sept. 15, but the district is not in the clear yet.
Budget approval is an important step for the district to maintain control over its finances and operations. For two decades Oakland Unified School District (OUSD) was in receivership and its budget was controlled by the state and county. It won back control in 2025.
Oakland's budget was only conditionally approved on Tuesday, which means the county identified some changes the district must make — like cutting an additional $30 million.
When the OUSD passed its budget in June, the board decided to delay this final cut until the fall. Board member Mike Hutchinson told KALW he didn't think that was a good idea. He was the sole "no" on the budget vote. " I can't explain why anyone would go along with this," he said in a phone call.
Board President Jennifer Brouhard told KALW that the restructuring work the board is doing — including more effective use of restricted funding — has put the district in a stronger position compared to past years.
County Superintendent of Schools Alysse Castro acknowledged OUSD's improvements in her letter, writing that the district’s budget was "materially stronger" than those it filed in the past.
OUSD reached an agreement with the teachers union in February. The deal added $32 million to this year's budget — just about the amount the board now needs to cut from it.
"We can't afford it according to the numbers," Hutchinson said.
But Brouhard sees the contract as an investment that will lead to better long-term stability. "If we really want to keep our educators in Oakland, we had to do something significant. And we did," she said in a phone call.
Oakland Unified Superintendent Dr. Denise Saddler celebrated the conditional approval in a newsletter on Sept. 16, calling it "positive news."
The district has only a few weeks to identify $30 million in cuts and must take action by Oct. 8. The county then has one month to approve the budget.
