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OUSD announces budget surplus following years-long deficit
OUSD announces budget surplus following years-long deficit.
OAKLAND, Calif. - After years of chronic budget deficits, Oakland Unified School District leaders announced this week that the district could finally see a budget surplus—provided it makes some difficult financial choices.
Unexpected assessment
What they're saying:
The budget for the remainder of the calendar year was the central focus of the Oakland Unified School Board's final meeting on Thursday before its summer break.
During the session, school district officials and staff shared an unexpected assessment: the district projects an $8 million surplus for the 2026–2027 school year. However, that surplus is entirely dependent on the district executing an additional $30 million in budget cuts this fall.
The assessment led to some heated exchanges and skepticism about the numbers.
Ryan Nguyen, OUSD's chief financial officer, gave this explanation about how he believes the district can end with a positive fund balance even if there's a deficit.
"Well, because, if we were to cut $30 million from our budget, we would end up with this amount," Nguyen told the board.
School board vice president Mike Hutchison responded: "This is a game people are trying to play. This was developed by AI. It doesn't even make sense. It isn't how we list stuff. I'm waiting for somebody to tell me you can't have a deficit and a surplus at the same time."
The positive outlook is a sharp turn for a district that has long struggled with its finances.
Earlier this year, the district pushed through hundreds of layoffs and deep cuts to balance what was then a $100 million budget deficit. District officials stated last night that the massive budget gap is now on its way to being closed precisely because of those earlier reductions.
Questions arise
What we don't know:
Despite the optimistic projection, board members raised numerous questions about the numbers during the meeting.
"The question is, how do we end up with a positive fund balance if there's a deficit?" one official noted during the presentation. "Well, because, if we were to cut 30 million from our budget, we end up with this amount. The 8 million dollars is a real number, but it's only a real number if this board approves this plan."
The challenge moving forward is that the specific details of what those fall cuts will entail have not yet been determined.
Teacher raise
Big picture view:
Complicating the financial picture is a $32 million price tag within the current budget to fund a new contract for Oakland teachers.
Under the agreement, the district gave educators an 11% to 13% raise. Just last week, the Alameda County Superintendent issued a statement warning that the labor contract could endanger the district's financial stability.
However, district officials maintained that the $30 million in planned fall cuts will be enough to successfully offset the cost of the teacher raises.
The Source: OUSD school board meeting