The Oakland Unified School District has done so little to stave off its enormous looming budget deficit that the Alameda County Office of Education can intervene, state officials have concluded.
Alameda County Superintendent of Schools L.K. Monroe had warned Oakland school board members last month she was concerned about the district’s reliance on one-time revenues to stay afloat instead of making the deep funding cuts needed. The school district is facing declining enrollment yet has failed to take any steps such as reducing staff levels or adopting a long-term financial plan, Monroe’s letter to the board explained.
The school district needs to cut about $90 million, according to Monroe. Her letter ordered the district to hand over its “Board-approved, budget-balancing solutions” by Jan. 31, 2022 and noted the county will review its financial controls.
“Because the District has yet to develop budget balancing solutions that do not rely on one-time funding solutions, and because there is an increased level of fiscal solvency uncertainty, ACOE will now provide more intensive intervention and support to the District,” Monroe wrote.
In response, the school district’s chief governance officer, Joshua Daniels, wrote a letter to California Superintendent of Public Instruction Tony Thurmond stating that the oversight measures proposed by the county are “not necessary as the District is on track to addressing its long-term fiscal challenges.”
The school district has already declared “in the strongest terms possible” that it needs to cut spending and find budget-balancing solutions, Daniels wrote. He noted the school board early last month approved $6 million in cuts — beyond the $2 million that could have been saved by closing or consolidating some schools, which it voted against doing.
Thurmond’s office denied the appeal last week, noting the county is within its right to beef up its oversight of the school district.
“The intent of the fiscal oversight process established by Assembly Bill (AB) 1200 is to provide early interventions and assistance to districts experiencing fiscal distress,” Lisa Constancio, deputy superintendent of the state Department of Education’s Operations and Administration Branch, wrote in a letter to the Oakland school board. “The process is intended to be proactive rather than reactive and preventative to avoid fiscal insolvency and loss of local control of the district. Early interventions allow for sufficient time to make corrections and avoid potentially deeper cuts that may be required if early actions are not taken.”
The district has faced giant budget deficits before. Almost two decades ago, it was put under the control of a state administrator when it became insolvent. Though it emerged from state receivership in 2009, the district’s financial decisions still must be overseen by a county trustee.
Like other school districts, part of the financial challenge Oakland Unified faces is a steep decline in enrollment. Oakland schools had 34,446 students enrolled this academic year, down by about 1,000 from last year. Meanwhile, the number of full-time employees increased by more than 100 positions. School districts receive funding from the state based on their daily student attendance totals.
If the district does not hand over the financial information and solutions requested, Monroe said the county could withhold the pay of school board members and superintendent Kyla Johnson-Trammell.
The school board is scheduled to meet Wednesday at 4 p.m. to discuss its next move.
Source: www.mercurynews.com