OAKLAND UNIFIED SCHOOL DISTRICT remains at high risk of fiscal insolvency despite recent budget cuts, according to a state financial assessment.
Last week, the Fiscal Crisis and Management Assistance Team (FCMAT) released a financial analysis that found the Oakland school district is at a high risk of fiscal insolvency due to ongoing structural deficits and a lack of reserves for periods of economic uncertainty. The financial health assessment also noted that the district approved new labor agreements before identifying budget solutions to be able to afford them.
The state agency conducted its report after Alameda County Superintendent of Schools Alysse Castro raised concerns about Oakland Unified’s leadership and finances, The Mercury News reported.
Last year, the school district exited more than two decades of state oversight, which came after California had to provide Oakland Unified with an emergency $100 million loan in 2003.
Leaders of Oakland Unified responded to the report in a statement, arguing that the FCMAT analysis did not fully consider “significant actions” the district board has taken, according to The Mercury News.
District officials have maintained that they have made significant financial progress in recent months, the newspaper reported, which included nearly $76 million in budget cuts since January. Leaders said more reductions are planned for the coming months.
“These decisions have not been easy, but they are necessary,” board President Jennifer Brouhard said in a Friday public statement. “We are committed to making responsible financial decisions, strengthening accountability and ensuring that our public schools remain under local control.”
This story originally appeared in EdSource.
