"Together, these developments have led to a concerning decline in the district's unrestricted general fund, Grant-Dawson said. In June, it was projected to be about $22 million. But after the closing of the books, the fund balance is $6 million. When Grant-Dawson joined the district during the 2019-2020 school year, the fund balance was in the negative and her department has worked to build it back up. As recently as 2023-2024, it was at $62.8 million."
"But with increasing costs, including higher pay, and declining attendance rates, the general fund dwindled. The district is required to maintain a fund balance of 2% of the overall budget, and the district imposes its own 3% requirement, or $28 million. If the board does nothing, OUSD would become insolvent."
""There is no way to avoid making reductions somewhere if you're going to be solvent," Grant-Dawson said. "There is no additional funding coming in that is going to allow us to balance the support that's needed for all school"
Oakland Unified's budget outlook has declined since June after summer changes. New bargaining agreements, restored after-school program spending, lower 2024-2025 attendance reducing revenue by $2 million, and a $10 million increase in special education costs have reduced the unrestricted general fund. The projected June balance of about $22 million closed at $6 million. The district previously rebuilt reserves from a negative balance to $62.8 million in 2023-2024, but rising costs and declining attendance have depleted funds. The board must direct cost reductions, revenue actions, and planning to avoid insolvency and meet reserve requirements by October and December deadlines.
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