Bay Area

District Leaders Say Schools May Face $15-21 Million in Budget Cuts Next Year

Published

5 years ago

December 12, 2019

The Oakland Unified School District (OIUSD) has announced it may cut $15.5 million from its budget for the next school year, signifying there is no end in sight to proposed austerity measures including school closures that state officials have promised would lead eventually to a better day for Oakland students.

“In order to balance the budget for 2020-21, OUSD will have to change how it uses its resources. The (Multi-Year Projection) shows that OUSD needs to reduce expenses and/or increase revenue by at least $15.5 million for next year,” according to a public statement released this week, “First Interim Report: An Important Budget Update.”

Adding in further expenditures for other employee raises, new student laptop computers and a new central kitchen that has long been in the works “brings to approximately $21 million our estimate of how much OUSD needs to reduce expenses and/or increase revenue for 2020-21,” according to the statement.

The Oakland school board will discuss these budget proposals “no later than February,” according to the OUSD statement, and “the board will vote on the reductions soon thereafter.”

Though not mentioned in the district press release, these cuts are unfolding under the guidance of the state operating through the Fiscal Crisis Management and Assistance Team (FCMAT), the Alameda County Office of Education and a state-appointed trustee with veto power under the district’s financial decisions.

Enhanced state authority over the district’s operations, including pressures to close schools, was granted by AB 1840, which was passed last year with the backing of then Gov. Jerry Brown and Oakland’s representatives in the State Legislature. FCMAT itself was involved in the drafting of the legislation.

In its statement, the district blamed its continuing shortfalls on state school funding that does not keep up with the district’s growing expenses.

“While state funding continues to increase, the increases are modest at best and woefully insufficient given how fast our expenses are rising,” the statement said.

“The bottom line is that funding is increasing a little, but our necessary and imposed expenses are continuing to rise faster. In order to balance the budget, will have to–like every year–prioritize how we spend our resources,” according to the statement.

Major local expenses, according to the district, are employee pension costs, which are expected to increase by $3 million next year, as well as teacher and other employee wage increases that were negotiated as a result of the teachers’ strike in February, though “these raises were long overdue.”

District expenses for providing special education are also expected to grow by $2.9 million next year. Operated at a heavy cost to Oakland and other school district, special education programs represent an “unfunded mandate,” which means they are required by law but not covered by state or federal funds.

Not alone in facing financial austerity, the Sacramento Unified School District is currently in the news as it struggles to come to grips with a $27 million deficit. The district is under pressure from FCMAT and the state auditor to cut teachers’ salaries and benefits.

According to a state audit, cited by the Sacramento Bee, the Sacramento school district could save millions of dollars by “cutting salaries by 2 percent, increasing teacher’s contributions to retiree health benefits and capping the district’s payment toward employee health care benefits at 90 percent.”

At present the district pays 100 percent of health costs.

Ken Epstein

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Oakland Post: Week of December 25 – 31, 2024

The printed Weekly Edition of the Oakland Post: Week of December 25 – 31, 2024

Published

10 hours ago

December 26, 2024

Oakland Post

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Bay Area

Glydways Breaking Ground on 14-Acre Demonstration Facility at Hilltop Mall

Glydways has been testing its technology at CCTA’s GoMentum Station in Concord for several years. The company plans to install an ambitious 28-mile Autonomous Transit Network in East Contra Costa County. The new Richmond facility will be strategically positioned near that project, according to Glydways.

Published

3 days ago

December 24, 2024

Oakland Post

Image of planned Richmond facility courtesy of Glydways.

The Richmond Standard

Glydways, developer of microtransit systems using autonomous, small-scale vehicles, is breaking ground on a 14-acre Development and Demonstration Facility at the former Hilltop Mall property in Richmond, the Contra Costa Transportation Authority (CCTA) reported on social media.

Glydways, which released a statement announcing the project Monday, is using the site while the mall property undergoes a larger redevelopment.

“In the interim, Glydways will use a portion of the property to showcase its technology and conduct safety and reliability testing,” the company said.

The new Richmond development hub will include “over a mile of dedicated test track, enabling Glydways to refine its solutions in a controlled environment while simulating real-world conditions,” the company said.

Visitors to the facility will be able to experience on-demand travel, explore the control center and visit a showroom featuring virtual reality demonstrations of Glydways projects worldwide.

The hub will also house a 13,000-square-foot maintenance and storage facility to service the growing fleet of Glydcars.

“With this new facility [at the former Hilltop Mall property], we’re giving the public a glimpse of the future, where people can experience ultra-quiet, on-demand transit—just like hailing a rideshare, but with the reliability and affordability of public transit,” said Tim Haile, executive director of CCTA.

Janet Galvez, vice president and investment officer at Prologis, owner of the Hilltop Mall property, said her company is “thrilled” to provide space for Glydways and is continuing to work with the city on future redevelopment plans for the broader mall property.

Richmond City Manager Shasa Curl added that Glydways’ presence “will not only help test new transit solutions but also activate the former Mall site while preparation and finalization of the Hilltop Horizon Specific Plan is underway.

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Alameda County

Last City Council Meeting of the Year Ends on Sour Note with Big Budget Cuts

In a five to one vote, with Councilmembers Carroll Fife and Janani Ramachandran excused, the council passed a plan aimed at balancing the $130 million deficit the city is facing. Noel Gallo voted against the plan, previously citing concerns over public safety cuts, while Nikki Fortunato-Bas, Treva Reid, Rebecca Kaplan, Kevin Jenkins, and Dan Kalb voted in agreement with the plan.

Published

3 days ago

December 24, 2024

Oakland Post

Oakland City Council voted on a plan to balance the $130 million deficit at their last regular meeting of 2024. The plan reduces police spending by $25 million, temporarily closes two fire stations, and guts the cultural arts programs. iStock photo.

By Magaly Muñoz

In the last lengthy Tuesday meeting of the Oakland City Council for 2024, residents expressed strong opposition to the much needed budget cuts before a change in leadership was finalized with the certification of election results.

Oakland police and fire departments, the ambassador program, and city arts and culture will all see significant cuts over the course of two phases.

Phase 1 will eliminate two police academies, brown out two fire stations, eliminate the ambassador program, and reduce police overtime by nearly $25 million. These, with several other cuts across departments, aim to save the city $60 million. In addition, the council simultaneously approved to transfer restricted funds into its general purpose fund, amounting to over $40 million.

Phase 2 includes additional fire station brownouts and the elimination of 91 jobs, aiming to recover almost $16 million in order to balance the rest of the budget.

Several organizations and residents spoke out at the meeting in hopes of swaying the council to not make cuts to their programs.

East Oakland Senior Center volunteers and members, and homeless advocates, filled the plaza just outside of City Hall with rallies to show their disapproval of the new budget plan. Senior residents told the council to “remember that you’ll get old too” and that disturbing their resources will only bring problems for an already struggling community.

While city staff announced that there would not be complete cuts to senior center facilities, there would be significant reductions to staff and possibly inter-program services down the line.

Exiting council member and interim mayor Bas told the public that she is still hopeful that the one-time $125 million Coliseum sale deal will proceed in the near future so that the city would not have to continue with drastic cuts. The deal was intended to save the city for fiscal year 2024-25, but a hold up at the county level has paused any progress and therefore millions of dollars in funds Oakland desperately needs.

The Coliseum sale has been a contentious one. Residents and city leaders were originally against using the deal as a way to balance the budget, citing doubts about the sellers, the African American Sports and Entertainment Group’s (AASEG), ability to complete the deal. Council members Reid, Ramachandran, and Gallo have called several emergency meetings to understand where the first installments of the sale are, with little to no answers.

Bas added that as the new Alameda County Supervisor for D5, a position she starts in a few weeks, she will do everything in her power to push the Coliseum sale along.

The city is also considering a sales tax measure to put on the special election ballot on April 15, 2025, which will also serve as an election to fill the now vacant D2 and mayor positions. The tax increase would raise approximately $29 million annually for Oakland, allowing the city to gain much-needed revenue for the next two-year budget.

The council will discuss the possible sales tax measure on January 9.