Key Updates on OUSD 9/9 Agenda

Update on OUSD Budget

Closing the Books on Last Year (2025-26)

This is a routine but important process: OUSD is formally finalizing (“closing the books on”) last year's actual finances, as opposed to projections. The district's deficit spending last year was smaller than projected, which is a sign that the cost-cutting (FISP) efforts are having some real effect.

The numbers:

• Actual General Fund balance as of June 30, 2026: $170,138,524.58
• That's $16.4 million better than what was projected
• This amount now becomes the starting cushion for the current year (FY 2026-27)

Despite this better-than-expected result, OUSD's fund balance is still $91.5 million lower at the start of this year compared to where it started last year. So things are better than the worst-case projection, but the district's overall savings and reserves have still shrunk dramatically year-over-year.

What's Still at Risk This Year

The same recurring pressure points keep showing up across our updates:

• Special education spending
• Risk management and self-insurance costs
• Salary and benefits
• Contracts and services
• Enrollment and attendance (ADA, or Average Daily Attendance, which drives state funding)

What Happens Next Procedurally

If the board approves this report, it goes to Alameda County by September 15, and a full independent audit must be completed by January 2027.

Our Take

OUSD’s finances are still precarious. It needs to:

• Increase enrollment and reduce chronic absenteeism to stabilize and slowly increase state funding, while finding revenue to fund any future employee raises in union contracts
• Better manage grant funding from Measures G, N & H, Prop. 28, and other restricted sources to fund academic and student support priorities
• Address its structural deficit spending and consider alternatives to reduce costs without affecting student outcomes

We appreciate Superintendent Saddler’s response to the OUSD Local Control Accountability Plan (LCAP) Parent & Student Advisory Committee and her promise for more budget transparency.

Questions We Have

• How will OUSD work with families to provide this better budget transparency and work together to identify budget solutions?
• When will these improvements be implemented?
• How will OUSD address its future financial shortfall as costs increase and enrollment declines?

Thank you for taking the time to review these updates. We can't wait to see you show up for our students and make sure our voices are being heard!