BOARD WATCH: Repaying OUSD’s $100M state loan

For more, click here for the full agenda.

You can watch the Zoom meeting by clicking on this link at 5:30pm or by calling (669) 900-9128, then enter Webinar ID 814 4823 3619, then pressing “#”. 

Click here to watch a livestream of the meeting tonight at 5:30pm

Item #21-1560

In late March, the Board passed the Reparations for Black Students resolution that directs the Superintendent to take all steps necessary to eliminate the Black student opportunity gap across all schools by 2025. One of those steps asks the Superintendent to establish a Black Student and Families Thriving Task Force by June 9th that would report to the Superintendent and will monitor the implementation of the resolution. The resolution asks that the Task Force is comprised of black students, caregivers, community members, educators and members of the Black Working Group of the Justice for Oakland Students Coalition, representatives from District compliance committees such as CAC, LCAP PSAC, CEEBSE.

Tonight, the District will be presenting an overview of the proposed structures and roles for the Black Students & Families Task Force, the membership criteria and selection process and the identified next steps needed to begin the task force meetings. Here is a proposed timeline to move this work forward:

Item #21-1543

In 2003, as a result of the District not being able to meet its financial obligations, the state took over and the administrator at the time approved a $100M state loan for OUSD that is to be paid off by June 2026. OUSD was able to gain partial control in 2009, the Board’s powers were reinstated and a state trustee was appointed with oversight powers.

Tonight, Board Vice President Sam Davis and Board Director Mike Hutchinson will be introducing a resolution that directs the Superintendent or designee to create a “Repayment Plan” to pay off the state loan by January 2023. Board Directors Davis and Hutchinson acknowledge that the District has significantly improved its financial standing and systems and has consistently set aside an additional 1% in reserve (a total of 3%). They believe that paying off the loan debt at the earliest opportunity would help address these long-term structural financial challenges. 

It is important to note that paying off the state loan will not completely eliminate state and county authority. OUSD will need to ensure it has adequate fiscal systems and controls in place and will have to go through a financial audit before the loans are paid off. The Alameda County Superintendent, Karen Monroe, retains the ability to stay and rescind any action of the Board until the District’s loans are repaid.

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