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After Two Decades, Oakland Unified Will Finally Regain Local Control

The decades of direct intervention by state officials, Alameda County education officials and a powerful, state-funded regulatory agency, the Fiscal Crisis Management and Assistance Team (FCMAT), will finally come to an end in July, according to the office of State Superintendent of Schools Tony Thurmond.

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Oakland Unified School District’s Central Administrative Center and Board Room at the site of Cole School in West Oakland. Courtesy photo.
Oakland Unified School District’s Central Administrative Center and Board Room at the site of Cole School in West Oakland. Courtesy photo.

By Ken Epstein

After 20 years under state control, the Oakland Unified School District (OUSD) will regain local authority over its budget and day-to-day decision-making, emerging from an era of austerity when the district was forced by state-appointed overseers to close more than 40 mostly flatland schools, eliminate educational programs, and cut millions of dollars in services for students and classrooms.

After making its final payment on a $100 million state loan at the end of June, the district in July will again be under the authority of the local school board, like other districts statewide.

The decades of direct intervention by state officials, Alameda County education officials and a powerful, state-funded regulatory agency, the Fiscal Crisis Management and Assistance Team (FCMAT), will finally come to an end in July, according to the office of State Superintendent of Schools Tony Thurmond.

The official narrative of the state takeover is a simple one: the district overspent its budget, and the state altruistically stepped in to rescue it.

But the truth behind the takeover is far different. It’s a story of raw power, greed, and racism.

When the state declared the district insolvent in 2003, OUSD had a $39 million deficit, and funds in a reserve account sufficient to loan itself funds to cover the deficit, a practice that was common in other districts. However, the state would not allow Oakland to use its own money to cover the shortfall.

The state stepped in, fired Supt. Dennis Chaconas, eliminated the authority of the Board of Education, forced the district to take a $100 million loan that it neither needed nor requested, and appointed a receiver, Randolph Ward, who reported to the state schools’ superintendent, making all the decisions related to the operation of OUSD, including how to spend the $100 million loan.

Not only did the district have to repay the loan, it had to pay the salaries of the various overseers it was required to hire.

Involved in the drive to take control of the district and sell school properties was Oakland’s then powerful State Senator Don Perata, who had been pushing for several years to take control of the district, unsuccessfully attempting to sell the district’s Second Avenue headquarters to real estate developers.

Other local business and political leaders, including State Supt. of Schools Bill Honig, were determined to eliminate the power of the Black majority school board, which was seen as an impediment to the agenda for business as usual.

Among recent interventions by Oakland’s outside overseers was in 2021, when the district, with broad community support, was about to adopt a resolution for “Reparations for Black Students.” The outside trustee spoke at a school board meeting to block the passage of the measure until the board removed wording that would have protected predominantly Black schools from being closed.

In 2024, during district negotiations with administrators, the trustee did not allow the board to approve more money unless it agreed to guidelines to close and merge schools.

In a letter to the district, Alameda County Superintendent of Schools Alysse Castro agreed that the district has done what is necessary to regain local control but that challenges remain.

“These improvements co-exist with ongoing concerns that OUSD must still confront its structural deficit and address the long-standing overinvestment in small schools,” she wrote.

“However, these are challenges of local policy and the domain of a locally elected board of education, not of mismanagement or financial misconduct,” Castro wrote.

“Continuing to require a trustee to backstop them risks continued delay in local ownership and accountability and reinforces a counterproductive narrative that feeds resistance and undermines the board’s willingness to engage their community in making necessary tradeoffs.”

Going forward, the district still faces financial difficulties. According to reports, the board must make $73 million in cuts to the 2025-2026 budget and an additional $17 million from the 2026-2027 budget.

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Oakland Post: Week of June 18 – 24, 2025

The printed Weekly Edition of the Oakland Post: Week of June 18 – 24, 2025

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Juneteenth: Celebrating Our History, Honoring Our Shared Spaces

It’s been empowering to watch Juneteenth blossom into a widely celebrated holiday, filled with vibrant outdoor events like cookouts, festivals, parades, and more. It’s inspiring to see the community embrace our history—showing up in droves to celebrate freedom, a freedom delayed for some enslaved Americans more than two years after the Emancipation Proclamation was signed.

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Wayne Wilson, Public Affairs Campaign Manager, Caltrans
Wayne Wilson, Public Affairs Campaign Manager, Caltrans

By Wayne Wilson, Public Affairs Campaign Manager, Caltrans

Juneteenth marks an important moment in our shared history—a time to reflect on the legacy of our ancestors who, even in the face of injustice, chose freedom, unity, and community over fear, anger, and hopelessness. We honor their resilience and the paths they paved so future generations can continue to walk with pride.

It’s been empowering to watch Juneteenth blossom into a widely celebrated holiday, filled with vibrant outdoor events like cookouts, festivals, parades, and more. It’s inspiring to see the community embrace our history—showing up in droves to celebrate freedom, a freedom delayed for some enslaved Americans more than two years after the Emancipation Proclamation was signed.

As we head into the weekend full of festivities and summer celebrations, I want to offer a friendly reminder about who is not invited to the cookout: litter.

At Clean California, we believe the places where we gather—parks, parade routes, street corners, and church lots—should reflect the pride and beauty of the people who fill them. Our mission is to restore and beautify public spaces, transforming areas impacted by trash and neglect into spaces that reflect the strength and spirit of the communities who use them.

Too often, after the music fades and the grills cool, our public spaces are left littered with trash. Just as our ancestors took pride in their communities, we honor their legacy when we clean up after ourselves, teach our children to do the same, and care for our shared spaces.

Small acts can inspire big change. Since 2021, Clean California and its partners have collected and removed over 2.9 million cubic yards of litter. We did this by partnering with local nonprofits and community organizations to organize grassroots cleanup events and beautification projects across California.

Now, we invite all California communities to continue the incredible momentum and take the pledge toward building a cleaner community through our Clean California Community Designation Program. This recognizes cities and neighborhoods committed to long-term cleanliness and civic pride.

This Juneteenth, let’s not only celebrate our history—but also contribute to its legacy. By picking up after ourselves and by leaving no litter behind after celebrations, we have an opportunity to honor our past and shape a cleaner, safer, more vibrant future.

Visit CleanCA.com to learn more about Clean California.

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OPINION: California’s Legislature Has the Wrong Prescription for the Affordability Crisis — Gov. Newsom’s Plan Hits the Mark

Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

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Rev. Dr. Lawrence E. VanHook. Courtesy of Rev. Dr. Lawrence E. VanHook.
Rev. Dr. Lawrence E. VanHook. Courtesy of Rev. Dr. Lawrence E. VanHook.

By Rev. Dr. Lawrence E. VanHook

As a pastor and East Bay resident, I see firsthand how my community struggles with the rising cost of everyday living. A fellow pastor in Oakland recently told me he cuts his pills in half to make them last longer because of the crushing costs of drugs.

Meanwhile, community members are contending with skyrocketing grocery prices and a lack of affordable healthcare options, while businesses are being forced to close their doors.

Our community is hurting. Things have to change.

The most pressing issue that demands our leaders’ attention is rising healthcare costs, and particularly the rising cost of medications. Annual prescription drug costs in California have spiked by nearly 50% since 2018, from $9.1 billion to $13.6 billion.

Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

Some lawmakers, however, have advanced legislation that would drive up healthcare costs and set communities like mine back further.

I’m particularly concerned with Senate Bill (SB) 41, sponsored by Sen. Scott Wiener (D-San Francisco), a carbon copy of a 2024 bill that I strongly opposed and Gov. Newsom rightly vetoed. This bill would impose significant healthcare costs on patients, small businesses, and working families, while allowing big drug companies to increase their profits.

SB 41 would impose a new $10.05 pharmacy fee for every prescription filled in California. This new fee, which would apply to millions of Californians, is roughly five times higher than the current average of $2.

For example, a Bay Area family with five monthly prescriptions would be forced to shoulder about $500 more in annual health costs. If a small business covers 25 employees, each with four prescription fills per month (the national average), that would add nearly $10,000 per year in health care costs.

This bill would also restrict how health plan sponsors — like employers, unions, state plans, Medicare, and Medicaid — partner with pharmacy benefit managers (PBMs) to negotiate against big drug companies and deliver the lowest possible costs for employees and members. By mandating a flat fee for pharmacy benefit services, this misguided legislation would undercut your health plan’s ability to drive down costs while handing more profits to pharmaceutical manufacturers.

This bill would also endanger patients by eliminating safety requirements for pharmacies that dispense complex and costly specialty medications. Additionally, it would restrict home delivery for prescriptions, a convenient and affordable service that many families rely on.

Instead of repeating the same tired plan laid out in the big pharma-backed playbook, lawmakers should embrace Newsom’s transparency-first approach and prioritize our communities.

Let’s urge our state legislators to reject policies like SB 41 that would make a difficult situation even worse for communities like ours.

About the Author

Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.

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