The Oakland Unified School District needs to cut $100 million from its next budget or risk being taken over by the state again. All cuts are being considered. Reductions at the central office have been proposed, but they only cover a small portion of what’s needed. OUSD Board Director Mike H utchinson said the current options aren’t clear enough. “We should not be in this financial crisis,” he said. “Every day that we wait to take action, the crisis gets worse cause we are still overspending this year.” The board also needs to cut $27 million this school year. During a meeting Wednesday night, Hutchinson will offer an amendment directing the superintendent to present a detailed plan on this year’s cuts in early January and a second vote later in the month for next year’s cuts. “We are in a situation now where we could possibly run out of money within the next 12 months,” Hutchinson said. “We are going to slash staffing and services across the district just to remain solvent and retain local control.” Interim Superintendent Denise Saddler has proposed her own broad plan to cut $102 million. This all comes just months after the state ended its receivership of the district. Saddler said she is calling for significant systemwide reductions to keep the state from taking over again. In a letter to the board, she wrote, in part, “this reality requires difficult, disciplined choices; choices that impact every part of the district, including school sites, central office, operations, programs, and contracted services.” Wednesday night’s meeting comes after several missed deadlines. It is the board’s last scheduled meeting to take action before the winter break. OUSD released the following statement Wednesday: “Oakland Unified School District is facing a historic $100 million deficit, and there is no choice but to make significant changes to the budget to ensure our financial future. Our 1st Interim Report that will be presented at Wednesday’s Board of Education meeting shows that our situation is so serious that our Business Office is recommending to the Board that it give our budget a negative certification for the current and next fiscal year, meaning that at some point in 2026-27 we may not be able to meet our financial obligations. Given that the vast majority of our budget goes to pay staff, there is no way to make $100 million in reductions without impacting people, and by extension, how the District does business, especially the business of educating children. No doubt any change that’s coming will be significant, impacting every district department and every school. Additionally, any reductions we make will address the current shortfall, but will not solve the overall structural deficit the District is facing. The District must make a plan for getting itself on firm financial ground by addressing the footprint of schools, acknowledging that the current number of sites keeps us from properly funding any of them and keeps us in this cycle of budget reductions that happen almost every year. We need such a plan to prevent us from falling into receivership again, and even if receivership became a reality, we would still need that plan to ensure we have a clear and quick path out of receivership. None of the proposed changes that the Board will hear on Wednesday will be easy. But with courage and conviction, the District will make the necessary changes that will keep it on the right financial path.” ...read more read less