The Oakland Unified School District forecasts that rising expenses and slowing revenue will lead to a general fund deficit of $23.7 million in the current fiscal year.
“We have higher costs and insufficient revenue to sustain those costs,” Chief Business Officer Lisa Grant-Dawson said in a statement Friday. “As a result, there are many tough decisions looming on the horizon.”
The numbers were made public in the district’s First Interim Report that projects a deficit in the Unrestricted General Fund — essentially the district’s checkbook for regular operations — of $25.7 million in fiscal 2025-26.
The decline in revenue is attributed to reductions in enrollment and attendance, which determines the amount of state support.
Higher costs reflect increased employee compensation, the district said. The Board of Education will start making decisions on how to balance the budget in February.
“Our financial stability will require us to make significant adjustments to our budget, which will include changes at schools and at the central office,” Grant-Dawson said.