News

School District Avoids State Takeover with Two-Year $32 Million Budget Cuts

Published

8 years ago

October 7, 2017

State control of the Oakland Unified School District has changed its form over the years since the takeover in 2003 but remains a constant presence in determining policy in the public school system.

When the state fired Oakland Schools Supt. Dennis Chaconas and suspended the Board of Education in June 2003, some of the outlines of state control soon became clear: school closures; attempts to sell school property to real estate developers; the rapid growth of charter schools; and the lease of school sites to charter schools.

Always on the defensive, community groups have thwarted some of the school closures and several times prevented the sale of the district headquarters’ property to developers.
Aligned against the district in its fight for local control were East Bay Senator Don Perata, president of pro tem of the State Senate, known for his connections to powerful developers; State Supt. of Public Instruction Jack O’Connell, with ties to billionaire charter school advocate Eli Broad; former governor and then Mayor Jerry Brown, a close Perata ally; Sheila Jordan, Alameda County Superintendent of Schools; and the Fiscal Crisis and Management and Assistance Team (FCMAT), an organization based in Bakersfield that is funded by the state to intervene in school districts but is lacking in state oversight.

FCMAT was led by Tom Henry and Joel Montero. Randolph Ward, a graduate of Eli Broad’s superintendent training program, became the district’s first state administrator.
While the state administrator ultimately was removed in 2009, a state trustee with power to rescind the district’s financial decisions remains in place.

The takeover was presented as a necessity designed to save the district from bankruptcy, but the reality remains very controversial and raises questions about the role of powerful political and economic interests.

Apparently forgotten was a previous unsuccessful takeover attempt promoted by Senator Perata even before the district uncovered an economic shortfall.
When the district became aware that it had overspent its budget in 2003, the OUSD administration developed a plan to maintain local control, which included borrowing money from funds paid to the district to partially reimburse OUSD for school construction projects.

The district’s plan was to repay the money over time into its construction fund.
“The use of the (reimbursement) money in this way was approved by OUSD’s bond attorneys, who happened to be the bond attorneys for the State of California, and expert in their field,” according to Jesse Douglas Allen-Taylor, writing at the time for the Berkeley Daily Planet.

Rather than approve borrowing and repayment plan, then County Supt. of Schools Jordan asked for an opinion from State Attorney General Bill Lockyer, who declared the plan illegal and blocked OUSD from using the money to balance the budget.
“In a mass community meeting later held at Allen Temple Baptist Church, Ms. Jordan defended her actions by saying that she could not allow the bond transfer because it was illegal,” according to Allen-Taylor.

When Jordan ran for reelection, she was criticized by her opponent Newark Superintendent of Schools John Bernard for her role in the takeover.

“Other county superintendents allow districts to use (construction reimbursement) money as a loan when the district is going into the red,” Bernard told the press. “The incumbent, Sheila Jordan, did not allow Oakland to use the (construction) bond money, they went into default, and the state took over,” he said.

Once the state had blocked the use of the bond reimbursement money, the debt rolled over into the next school year, becoming over $60 million, and the state rounded its bailout loan up to $100 million for good measure.
Thus, the district was forced to borrow $100 million rather than the $37 million it needed.
Of course, the bailout came in after the state took over, and therefore the state-appointed administrator – in consultation with his bosses- was in charge of how the money was spent.

Many people said that “Mr. Perata was the driving force behind the 2003 state seizure of the Oakland public schools,” wrote Allen-Taylor.

The political maneuvers behind the state takeover were suggested in an Oakland Tribune article written by then Tribune staff writer Robert Gammon, now editor of the East Bay Express.

“(Some) say office and cell phone records obtained by the Oakland Tribune provide evidence the takeover, and the resulting loss of local control of Oakland’s schools, was politically orchestrated,” Gammon wrote.

“The records show top officials from the Bakersfield-based Fiscal Crisis and Management Assistance Team (FCMAT) called Oakland Mayor Jerry Brown, the office of state Sen. Don Perata, D-Oakland, and then-Compton schools chief Randy Ward at least 40 times each in the months before the takeover,” according to Gammon.

Brown and Perata had publically supported a takeover during the preceding year. They voiced support for “placing Ward and FCMAT in charge of the school district,” wrote Gammon.

In the six months prior to the takeover, the records show FCMAT officials did not call Supt. Chaconas or school board President Greg Hodge, according to the Tribune.

“FCMAT (pronounced fick-mat) was supposed to be our fiscal advisers,” Hodge told the Tribune. He and Chaconas said FCMAT officials did not return their calls for months.

“They were supposed to be helping us. But instead they turned this into a political campaign to take over the district,” said Hodge.

Sheila Jordan in an interview with the Post disputed those who said the takeover was political.

The district wanted to borrow from its school construction funds to pay off the shortfall, she said. “Many districts do that understanding that because those funds were passed by the voters to update and build schools, districts by law must establish their ability to repay what is a short-term loan.”

“Oakland did not have anywhere near the revenues to repay the loan. The hole in their budget was $27 million,” Jordan said.
“The investigation discovered a plug in the budget. It rolled over into the following year and resulted in close to a $65 million deficit,” she said. “I never did understand why the loan was $100 million.”

The analysis of the district’s finances was conducted by School Services of California, the Fiscal Crisis Management and Assistance Team (FCMAT) and Alameda County Office of Education “working together at the table,” she said.

“The Trib(une) reporting at that time was upholding a theory of action that was wholly discredited by the facts produced by the fiscal experts,” said Jordan.

Disagreeing with Jordan was Lewis Cohen, who served as an assistant superintendent in Dennis Chaconas’ administration at the time of the takeover.

“The 2003 state take-over was a largely political process. The $100-million-dollar loan was concocted by then County Superintendent Jordan’s experts and put into legislation by Senator Perata, as she seems to have conveniently forgotten,” he said.

“We lobbied against this legislation at the time, but Perata and his allies forced the loan on the school board by blocking the legal use of construction funds reimbursed by the state,” said Cohen.
“These were not bond funds and carried no legal restrictions at all, much less that the loan needed to be short-term,” Cohen added.

Direct state control of the school district was ended in 2009, due in part to the efforts of Assemblyman Sandre Swanson, wrote reporter Allen-Taylor at the time.

“Without Mr. Swanson’s dogged persistence on the Oakland school issue (for) three years, it is probable that local control would still be years away,” he wrote.

“(State Supt. of Public Instruction) O’Connell gave every indication that unless he was forced to do so under

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Activism

Over 500 Join Interfaith Rally in Solidarity with Los Angeles Resistance to Trump Invasion

Over 500 people attended the Tuesday evening rally in Oakland, which was held simultaneously with a prayer vigil in Los Angeles, where rabbis, pastors, Muslim faith leaders, and indigenous spiritual leaders gathered to pray and speak out about the federal government’s abuses of power.

Published

2 days ago

June 14, 2025

Oakland Post

Hundreds gathered at Fruitvale Plaza in Oakland on June 10 in solidarity with immigrants and opposed to Trump’s use of armed federal agents in Los Angeles. Photo by Beth LaBerge/KQED.

By Post Staff

n response to last week’s “invasion” of Los Angeles by armed and masked federal agents, East Bay faith leaders and community members, joined by Oakland Mayor Barbara Lee and Alameda County Supervisor Nikki Fortunato Bas, held an Interfaith vigil Tuesday evening at Oakland’s Fruitvale Plaza in support of Los Angeles residents and immigrant communities across the country.

Earlier on the same day, hundreds of protesters at San Francisco and Concord immigration courts shut down the courts after masked, plainclothes federal ICE agents detained people seeking asylum attending their court hearings.

“Too many families in Los Angeles torn apart by this invasion still do not have access to a lawyer — and that’s not an accident. We, the people, the community, are here to say, ‘Enough!’ We must keep organizing and demand that ICE and our government respect the rights of all people and uphold the principle of due process,” said Andrés Pomart with Trabajadores Unidos Workers United.

“We know that when we organize, we win. That’s why our communities – Black, Brown, and working-class – are coming together to support each other in solidarity. Together, as immigrant communities and as a united working class, we will not be divided nor intimidated nor live in fear,” Pomart said.

“Immigrant communities — yes, our immigrant communities — are the heartbeat of Oakland, enriching our neighborhoods with diverse cultures, languages and experience, and deserve the quality of life that every human being deserves. An attack on one of us is an attack on all of us. “Your city remains committed to protecting our immigrant neighbors,” said Mayor Lee.

“When Trump’s armed goons come for our families and communities, when they trample on our shared values of freedom and opportunity, when they make a mockery of our rights to due process, we are called to step up for our neighbors,” said Supervisor Bas. “This is not just an immigration story. It’s a story about who we are — and how we respond when our neighbors are under attack and when the president of the United States abuses his powers. When they come for one of us, they come for all of us.”

Said Kampala Taiz-Rancifer, the Oakland teachers’ union president, “It is time for us to say, ‘Not in our city.’ We will stop, we will block, we will drive out ICE. We will protect our classrooms. We will protect our streets. We will protect our homes. Together, we rise for the dignity of our families and our right to live without fear.”

“I feel that the president and the current administration is grossly overstepping and abusing their power,” Rabbi Chai Levy, speaking to KQED. “I feel that, as a religious person, communities of faith need to show up and stand in solidarity with immigrants who are threatened and afraid. “It’s important to show up as people of conscience and morality and say that we’re against what our government is doing.”

The vigil was hosted by Bay Resistance, and co-sponsoring organizations included the Alameda Labor Council, Alliance of Californians for Community Empowerment (ACCE), Faith in Action East Bay, Restore Oakland, East Bay Alliance for a Sustainable Economy (EBASE), Ella Baker Center for Human Rights, Oakland Rising, Faith Alliance for a Moral Economy, SEIU Local 1021, Communities United for Restorative Youth Justice (CURYJ), SEIU United Service Workers West, Jewish Voice for Peace Bay Area, Jobs with Justice San Francisco, Interfaith Movement for Human Integrity, Urban Peace Movement, and Trabajadores Unidos Workers United.

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Activism

Oak Temple Hill Hosts Interfaith Leaders from Across the Bay Area

Distinguished faith leaders Rev. Ken Chambers, executive director the Interfaith Council of Alameda County (ICAC); Michael Pappas, executive director of the San Francisco Interfaith Council; and Dr. Ejaz Naqzi, president of the Contra Costa County Interfaith Council addressed the group on key issues including homelessness, food insecurity, immigration, and meaningful opportunities to care for individuals and communities in need.

Published

2 days ago

June 14, 2025

Oakland Post

Troy McCombs (from the state of Washington), Elder Mark Mortensen (from Irvine, CA), Michael Pappas, Rev. Ken Chambers, Dr. Ejaz Naqvi, Elder Sigfried Nauman (from the state of Washington), and Richard Kopf. Courtesy photo.

Special to the Post

Interfaith leaders from the Bay Area participated in a panel discussion at the annual meeting of communication leaders from The Church of Jesus Christ of Latter-day Saints held on Temple Hill in Oakland on May 31. Distinguished faith leaders Rev. Ken Chambers, executive director the Interfaith Council of Alameda County (ICAC); Michael Pappas, executive director of the San Francisco Interfaith Council; and Dr. Ejaz Naqzi, president of the Contra Costa County Interfaith Council addressed the group on key issues including homelessness, food insecurity, immigration, and meaningful opportunities to care for individuals and communities in need.

Chambers, said he is thankful for the leadership and support of the Church of Jesus Christ Latter-Day Saints’ global ministry, which recently worked with the interfaith congregations of ICAC to help Yasjmine Oeveraas a homeless Norwegian mother and her family find shelter and access to government services.

Oeveraas told the story of how she was assisted by ICAC to the Oakland Post. “I’m a Norwegian citizen who escaped an abusive marriage with nowhere to go. We’ve been homeless in Florida since January 2024. Recently, we came to California for my son’s passport, but my plan to drive for Uber fell through, leaving us homeless again. Through 2-1-1, I was connected to Rev. Ken Chambers, pastor of the West Side Missionary Baptist Church and president of the Interfaith Council of Alameda County, and his car park program, which changed our lives. We spent about a week-and-a-half living in our car before being blessed with a trailer. After four years of uncertainty and 18 months of homelessness, this program has given us stability and hope again.

“Now, both my son and I have the opportunity to continue our education. I’m pursuing cyber analytics, something I couldn’t do while living in the car. My son can also complete his education, which is a huge relief. This program has given us the space to focus and regain our dignity. I am working harder than ever to reach my goals and give back to others in need.”

Richard Kopf, communication director for The Church of Jesus Christ in the Bay Area stated: “As followers of Jesus Christ, we embrace interfaith cooperation and are united in our efforts to show God’s love for all of his children.”

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Alameda County

Council Approves Budget to Invest in Core City Services, Save Fire Stations, Invest in Economic Development

I am most proud of our ability to fund these critical city services without the use of one-time fixes. We are still suffering the consequences of last year’s budget, where a majority of the Council, myself not included, chose to incorporate anticipated proceeds from the sale of the Coliseum to fund essential services. Since the sale has still not yet been completed, the lack of funds led to drastic cuts in city services, including the temporary closure of fire stations, staff layoffs, and the cancellations of many service contracts.

Published

2 days ago

June 14, 2025

Oakland Post

District 4 Oakland City Councilmember Janani Ramachandran. Photo courtesy City of Oakland.

By Janani Ramachandran, District 4 Oakland City Councilmember

On Wednesday, June 11, City Council took a bold step to prioritize investing in essential city services to get our beautiful Town back on track. As Chair of the Finance Committee, I am proud to have led a collaborative process, alongside Councilmembers Rowena Brown, Zac Unger, and Charlene Wang, to develop a set of amendments to the proposed FY 2025-2027 budget which passed successfully with a vote of 6 – 1. Despite facing a $265 million structural budget deficit, we were able to restore funding to ensure that all 25 fire stations remain open, fund 5 police academies, invest millions of dollars to combat illegal dumping and sideshow prevention, improve our permitting processes, fund a “business incentives” program to revitalize our commercial corridors, improve upon our homelessness prevention work, amplify the city’s anti-trafficking programs, re-instate our tree services division, staff up our Auditor’s office – all while preventing any layoffs of city staff, keeping our senior centers and after-school programs open, and crisis services like MACRO funded.

Our budget comes in response to the widespread and consistent calls from across Oakland’s diverse communities asking us to prioritize funding solutions to the issues that have most directly impacted our residents’ safety and quality of life. Our priorities are also inspired by our belief that Oakland is on the way not only to financial recovery, but also to global recognition. Oakland can attract and preserve businesses of all sizes with safer, cleaner streets. We can and will have more large-scale festivals that celebrate our culture, concerts that uplift our incredible local musicians, conferences that attract patrons from across the world, and award-winning restaurants that top national charts. We are on our way to rebuilding a thriving economy and having a cultural renaissance will create more jobs for Oaklanders while also generating more revenue for the City through sales and business taxes.

I am grateful for the close partnership with our new Mayor Barbara Lee, and know that she shares our values of ensuring we are prioritizing keeping Oakland’s residents safe, our streets clean, and our businesses prosperous in an open and fiscally responsible manner. I am also thankful to our City Administrator, Jestin Johnson, and former Interim Mayor Kevin Jenkins’ efforts to produce the initial proposal that our Council budget team used as a starting point for our amendments, and for their shared commitment to transparency and ethical government. I am especially grateful for every resident that took the time to make their voice heard throughout this rigorous budget process. I have no doubt that we are on the verge of true change, and that together we will bring Oakland back to being the world-class city I know it can be.