An independent financial analysis of Oakland Unified School District (OUSD) highlights major issues with how the district is run.
The report, dated Oct. 29, rated the district’s risk of fiscal insolvency as “high,” noting that it hasn’t shown it can avoid running out of cash in the next couple of years and citing concerns about the district’s budgeting process, deficit spending, and stability.
It also cited specific concerns about leadership turnover, missed deadlines, and dramatically fluctuating budget lines. For example, projected expenditures for books and supplies fluctuated from $82,000 in 2026-27 to $47.5 million in 2027-28 and $12.3 million in 2028-29.
The district did not respond to a request for comment.
This analysis was triggered after the Alameda County Superintendent of Schools raised concerns about the district’s financial footing in April.
The Fiscal Crisis and Management Assistance Team (FCMAT) authored the report, which is built from a series of weighted questions that produce a final score.
A score over 40% is considered “high.” OUSD’s score was 47.7%.
“Oakland is not alone,” the district said in a Friday press release, noting that FCMAT also rated 11 districts as high risk, including San Francisco Unified.
“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,” the district said.
For two decades OUSD was in receivership and its budget was controlled by the state and county. It won back control in 2025.
OUSD’s budget was only conditionally approved in September, a pattern over the last three years. Budget approval is an important step for the district to maintain control over its finances and operations.
Oakland Unified Superintendent Denise Saddler said in the press release that her team is working to balance the budget and address the report’s findings.
FCMAT will present its report to the Board of Education at the Nov. 12 meeting and the district says it will present an update on the stabilization plan, alongside its First Interim Report, at the Dec. 9 meeting.
