Wednesday 3rd of June 2020 01:01:18 PM GMT

Oakland Unified School District: OUSD Email Explains Adopted Budget

(Last Updated On: June 27, 2019)

The Oakland Unified School District (OUSD) sent an email entitled “Understanding the Budget, Facing Our Challenges Head On”. It appears below.

Dear Community,

Over the past couple of weeks, OUSD staff shared some important presentations to the Board of Education regarding next year’s budget and our overall educational strategies, goals, and progress. This email will share some general background about the budget and Local Control Accountability Plan (LCAP), as well as some information about some challenges in the future.

We want to share some information on:

OUSD’s Budget Development Process;
California’s budgeting process and how it impacts OUSD;
Progress and Appreciation of Fiscal Support;
OUSD’s financial budget Board of Education (BOE) presentation (from June 12 & 22; Click here for presentation and financial forms); and
The Local Control and Accountability Plan (LCAP) BOE (from June 12 & 22; Click here for presentation and full document).

The budget and LCAP presentations are related, but help tell different parts of OUSD’s overall story. The budget presentation focuses on OUSD’s dollars and cents accounting and the LCAP shares more detail about some of OUSD’s key educational strategies and progress.

Oakland OUSD Kids in School

Oakland OUSD Kids in School

Facing challenges head on:
OUSD’s adopted budget has two sections: (1) the 2019-20 budget; and (2) the multi-year projection (MYP) which includes the 2020-21 and 2021-22 school years. OUSD’s proposed budget is balanced for next year, but the MYP shows deficit spending of ~$8.7 million for 2020-21 and ~$17 million for the 2021-22 school year.

OUSD staff looked at the MYPs of six California school districts which are comparable to OUSD and/or have recently settled contracts. Four show steeply declining reserves. Like Oakland, unless these four districts take action to address the challenge of essentially flat revenues and increasing costs, this will threaten their fiscal solvency (click here for a brief overview).

The purpose of an MYP is to identify important issues that need to be addressed before it is too late. The MYP makes educated financial projections about the future by:

looking at the available data (e.g., assumptions around enrollment, increases in employee compensation, projected state funding, etc.); and assuming that OUSD programs remain about the same.

MYPs can and do change as more information becomes available and the district makes adjustments throughout the fiscal year. That is why they are updated frequently. MYPs also allow for district leadership and school boards to make proactive decisions in order to support a healthy budget in the future.

We want to be as clear as possible so we can be proactive about meeting the financial challenges ahead. Many other districts in California are facing similar financial issues.

Similarly, a family might look at their college-bound 16 year old and understand that in two years, they may be paying for college. So they might have to make adjustments before college starts in order to fund that family priority.

Why is this happening?

Projecting deficit spending in out years (2020-21 and 2021-22) is not a surprise. At a high level, this is happening because OUSD has:

Flat Revenue: We are projecting our revenue to be relatively flat (about the same). Although OUSD will see small “cost of living” increases, we believe these will be offset by small drops in enrollment.
Increasing Costs: We are also projecting increasing costs. The same key issues remain – special education, benefits, and employee compensation.

Making the necessary adjustments:
Turning back to the family with a college bound 16 year old, the family will likely face a tough financial challenge in two years. They might have to take out loans, work another job, apply for scholarships, or some combination of those options.

In order to offer the same level of educational programs and services in the future, OUSD will have to make the necessary changes. There are many ways to address these challenges for the 2020-21 and 2021-22 school years.

We will likely have to both increase revenue and reduce expenses:

Increase revenues:

Increase enrollment and attendance (Student attendance drives most of our funding)
Lease property (Leasing vacant properties will create ongoing revenue)
Increase private funding (pursuing additional grants to fund specific priorities)
Increase partnerships with city and county agencies (e.g., partner with agencies performing similar programs)

Reduce expenses:

Become more efficient in our operations
Further reduce expenditures
Use our restricted funds to support our general funds

Next steps:

Over the summer we will continue to improve our financial processes and procedures. In September, we will close the books on the 2018-19 school year. This will give us a clear picture on the final financial outcomes for this year and ultimately impact next year’s budget.

Stay tuned.

Oakland News Now @OaklandNewsNow is by Zennie62Media, Inc. with CEO Zenophon Abraham AKA Zennie62 YouTube Partner, Oakland California blogger / vlogger Zennie Abraham @ZennieAbraham . Hire @Zennie62Media, Inc to tell your story.

Zennie62Media uses smartphones enabling our 98-blog network, specially-made blogs, website, social media platforms covering politics, news, sports, and tech, @Oaklandcitynews, Oakland City Council, North Oakland, East Oakland, Montclair, Adams Point, Uptown Oakland food culture, BBQ Becky Dr. Jennifer Schulte , Jogger Joe Henry Sintay, Oakland crime news, Bank of America loans, COVID-19 updates, homeless news, SF Bay Area news, @breakingnewsbayarea, Emeryville, Atlanta news, Chevron Ecuador, Steven Donziger, Fayetteville GA news, @FayettevilleGA Fayette County Georgia, San Francisco news, San Jose news. Also, Academy Awards / The Oscars entertainment,Tom Hanks, Skyline High School, Oakland Sports, Oakland Panthers, Oakland Coliseum, Honda of Oakland, Oakland Arena, Oakland Raiders, Las Vegas Raiders, Las Vegas Stadium Construction, Allegiant Stadium, NBA, NFL, NFL Draft, NFL Combine, CES Las Vegas tech, San Diego Comic Con sci-fi. @GrandLakeTheater @LasVegasHotels

Zennie62Media has content development and online reputation management clients like Insight Terminal Solutions @InsightTerminalSolutions and The Oakland Bulk and Oversized Terminal, with California Capital Investment Group Managing Partner Phillip Phil Tagami @PhilTagami co-developer, @JohnSiegel John Siegel as ITS CEO – exposing coal and Oakland fake news. Zennie62 has helped Maria Ayerdi Kaplan @MariaAyerdiKaplan, developer of Salesforce Transit Center in San Francisco, Kofi Bonner, and Flowsent capture the Oakland Cannabis Delivery Dispensary @OaklandCannabis market with fitness model female bodybuilder Laura Ehlen and weedmaps help. We’ve partnered with CoLoursTV, CNN, YouTube, Google, NBC, Vice, Oakland Post / Post News Group, Landis PR, and other media organizations. Competition: The SF Chronicle, Las Vegas Review Journal, East Bay Express, Oakland Tribune.

Zennie62 interviews celebrities like Lars Frykman, Bill Boyd, Arizona Cardinals QB Kyler Murray, Raiders Owner Mark Davis, Raider Legend Raymond Chester, Brianna Noble, NY Giants Owner John Mara, @SportsTalk Tony Bruno, Sports Agent Leigh Steinberg, Henry Sintay Oakland’s “Jogger Joe”, Cam Newton, NFL Commissioner Roger Goodell, California Governor Gavin Newsom, Tanis Parenteau, Scott Kidd, Actors Richard Dreyfuss, Lou Ferrigno, Lindsey Vonn hot legs, Blake Neely, SDCC’s David Glanzer, Publicist Edward Lozzi. Topics like Oakland Apartment rents, WordPress, CVS Mail Order and Pharmacy, Kaiser Permanente, Rosa’s Home Cooking Restaurant, Oakland Community Kitchens, Lukas Oakland, Maria Alderete, The Studio Cafe, @OaklandCityCouncil, Mountain View, CA, London, England, Moscow, Russia, blacks in tech, Tackett Bartlett LLP @TackettBartlettLLP, Jameis Winston, Pinewood Studios Atlanta, Jeff Miller, Joceyln Moore, Derek Carr, Marcus Mariota, Yanqing Ye, UC Berkeley, NFL Owners Meeting, NFL Annual Meeting, Eli Lilly Coronavirus COVID-19 vacine, Summit Bank Oakland, Bank of America.

Also Pat Abraham Yerger, Oakland Mayor Libby Schaaf @LibbySchaaf, Councilmember Nikki Fortunato Bas, Dan Kalb of District 1, Loren Taylor, Lynette Gibson McElhaney, Sheng Thao, Noel Gallo, Robert Bobb, Rebecca Kaplan, Larry Reid, Tech Entrepreneur Sarah Lacy, Personal Trainer Megan Avalon Buffed Barbie, Social Media Pioneer Marc Canter, SF Mayor London Breed, Scott McKibben, CA Assemblymember Buffy Wicks, Schools Superintendent Tony Thurmond, Berkeley Councilmember Ben Bartlett @BenBartlett, Raiders Charles Woodson, 49ers Jerry Rice, Grand Lake Theater Oakland Owner Allan Michaan, Irvine City Manager John Russo, Guy Fieri, Oakland CAO Edward Reiskin, Raiders Coach Jon Gruden Running Back Josh Jacobs, Stanford HC David Shaw, Tri Ngo, Falcons Coach Dan Quinn, Michael Mina, and NFL Draft Mr. Irrelevant Head Melanie Fitch and Paul Satala. Subscribe to Zennie Abraham’s @Zennie62 YouTube Channel, today!

About the Author

Zennie Abraham
Zennie Abraham is the CEO of Zennie62Media

Oakland News Now Recent Blog Posts