Oakland school district blames ‘human error’ after paychecks yanked from bank accounts

In this file photo, Oakland students walk across a street to board a bus. In this file photo, Oakland students walk across a street to board a bus. Image 1 of / 3 Caption Close Oakland school district blames ‘human error’ after paychecks yanked from bank accounts 1 / 3 Back to Gallery

More than 2,800 Oakland school employees had their most recent paychecks pulled out of their checking accounts this week, a snafu that district officials initially blamed on a bank error before offering a mea culpa a few hours later.

“It was not the bank’s fault,” said John Sasaki, a district spokesman. “We have apologized to Union Bank for making that assessment earlier.”

A district staff member made a mistake, Sasaki explained, saying, “It was human error.”

District officials, though, could not explain how an employee could reverse payroll deposits for nearly 3,000 employees, something they agreed would likely take more than a push of a button. That said, officials believe it was an accident.

“There’s no reason to believe this was sabotage,” Sasaki said, adding the problem had nothing to do with a shortage of district funds.

The staff member was not identified, nor was the person’s department. It was unclear whether the employee would face disciplinary action. The matter is under investigation, Sasaki said.

Teachers, administrators and other district employees received their paychecks a week ago through direct deposit funneled through Union Bank. For those affected, that deposit was reversed Tuesday, leaving an untold number of accounts drained or in overdraft.

People were upset and in a panic Wednesday morning, said Trish Gorham, president of the Oakland Education Association, the teachers union.

“I can attest to that based on my emails, texts and phone calls,” she said.

Teacher Barbara Buswell was among those infuriated by the situation.

“My mortgage payment is attached to my account,” said Buswell, a second-grade teacher at Hillcrest Elementary. “I’m overdrawn. I have $10 in my wallet.”

The error came as the district faces a $15.1 million budget deficit, with schools required to make up to $5 million in mid-year cuts to address the shortfall.

“As we address this unfortunate error, I want to be clear that this is not related to the current budget crisis,” said Superintendent Kyla Johnson Trammell. “I am deeply sorry for any inconvenience and stress this may have caused.”

District officials said the problem affected workers who are paid monthly and was widespread among employees, including the payroll manager.

The money was sent again Wednesday to employees’ accounts, and district officials were contacting banks used by employees to explain the situation, with the hope that any overdraft fees would be reversed.

The district will make sure all employees are “made whole” in terms of any penalties they incur, Sasaki said.

As district officials attempted to correct the error, however, they inadvertently reinstated funds even for some employees who did not lose money, meaning they received a double payment which would have to be returned to the district.

Union Bank officials did not immediately respond to a request for comment.

Jill Tucker is a San Francisco Chronicle staff writer. Email: jtucker@sfchronicle.com Twitter: @jilltucker