The Oakland Unified School District is on the verge of being removed from state oversight of its finances by paying off a $100 million loan, the district announced Tuesday.
OUSD was forced to take a bailout in 2003 due to fiscal insolvency, which led to a state takeover. A required audit aimed at ensuring the district can stay solvent now shows the district can expect this summer to make its final two payments on the state loan and exit receivership.
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WATCH HERE"With the audit complete and the loan payoff days away, OUSD is closer to full independence than at any time since 2003," the district wrote on its website announcing the news. "However, the report warns that without continued action to reduce costs and improve attendance, the district is at risk of needing another state bailout."
The audit requires the district to make several recommendations, including the following:
- Close/consolidate schools to reduce overhead and reinvest in educator salaries.
- Increase attendance by at least 5% in underperforming schools.
- Recapture students lost to charter schools with better programs and facilities.
- Centralize operations to achieve economies of scale.
Review further audit findings at ousd.org.
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