Key Updates on OUSD 3/11 Agenda

OUSD’s Budget

Oakland's school district reached a deal with the teachers' union to increase pay through 2027. The raises look like this:

• Summer 2025 (retroactive, meaning teachers get back pay): Top-earning teachers get 7%, everyone else gets 4%
• Summer 2026: Top earners get 2%, everyone else gets 3%
• June 2027: Everyone gets 4%
• Certain specialized staff such as special education teachers, nurses, school psychologists, and social workers would get extra pay on top of that.

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The Problem: Nobody Knows How the District Will Pay for It

Here's where it gets concerning. By California law, when a school district agrees to give raises, they're required to publicly show how much it will cost and where the money is coming from. OUSD skipped that step. The school board is being asked to approve a pay deal without knowing the price tag.

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The Bigger Picture: The District is Already in Financial Trouble

OUSD's official financial status right now is "qualified," which means "we're not sure if we can pay our bills." There are a few warning signs:

• The district is already laying off staff via a Reduction in Force (RIF)
• The county's education office has already warned OUSD multiple times about making long-term spending promises without having the money to back them up
• A new plan to raise $1.5 million by adding more kindergarten classrooms is coming up $400,000 short of its goal

If the cost of these teacher raises gets added into the financial picture and there's no clear way to pay for them, OUSD's status could drop from "qualified" to "negative". This would mean that the state steps in, takes over the budget, and local families and elected officials lose their say in how money is spent.

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The district made a deal to pay teachers more, but hasn't been transparent about how it will afford it. The school board and the public are being asked to approve something without all the facts. If the finances aren't handled carefully, the state could take over the district's budget entirely, and thus remove local control.

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Our Take on OUSD’s Budget

1. Be transparent about the teacher raise deal. The school district needs to publicly release a detailed document showing exactly how much the teacher raises will cost each year and where that money is coming from. Right now, that information hasn't been shared, and families deserve to see it.
2. Show a clear financial plan. The district needs to update its overall financial recovery plan to answer three specific questions:
   
   • How much will the teacher raises cost, and is that already accounted for?
   • What new money is coming in to help cover those costs?
   • What spending is being cut to make up the difference?
3. Prove the district won't lose control of its own budget. If the district's finances get bad enough, the state government steps in and takes over all financial decisions. This would mean local families and elected officials would have no say. OUSD needs to clearly explain what steps it's taking to make sure that doesn't happen.