PCOE/PUSD Regular Board Meeting June 17, 2026

001Mhm. >> Mhm. >> I love you so. I love you so. >> Mhm. >> Good thing that was >> Okay, now it is. Good to go. >> All right. So, I will call to order the PCOE regular board meeting and please stand and face the flag and repeat after me. >> I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Roll call. >> Johnson. >> Here. >> Klein. >> Here. >> Harrison. >> Here. >> Krim. >> Here. >> De La Montanya. >> Here. >> All right, I will entertain a motion to approve the PCOE agenda. >> I'll make a motion. >> I'll second. >> All in favor. >> Aye. >> All right, and

002I'll hand it over to Superintendent White for the report. >> Thank you, Jody. I I just have a really quick report this evening because we have a big agenda, but just to kind of keep you updated as I have throughout the year the work that the single singles are doing with thick mat and then state we're going to continue that work in August where the single singles will be meeting to continue our efforts to review the C C O E procedural manual for updates that are relative to strengthening the single single procedures and that is work that we're doing hand-in-hand with thick mat. So. >> That's all right. >> Good. >> Thank you. Can we move on? >> Got it. [clears throat] Sorry. >> That's it? >> Um two presentations, PCOE board member election process,

003um Marcy De Martio. Thank you. Thank you for having me. >> Absolutely. >> Thank you. Um Marcy De Martio, County Clerk Recorder Registrar of Voters. Um the election is coming for November in which all five board members are up for election and that filing period will start on July 13th and will end for all incumbents on August 7th. Those are hard dates, July 13th through August 7th. If an incumbent does not file, then it will extend for five days for anyone but the incumbent. So, Matt, if I may throw you under the bus, um so let's say the filing period comes and goes and Mr. D decides that he no longer wishes to be on the board and August 7th comes and goes. He is no longer eligible to run for office, but anyone other

004than himself who is in that trustee area could file for that position. You have to be a registered voter and you have to be a registered voter within the trustee area that you're seeking to represent in order to be on the board. Um the filing packet, which is available in our office, as well as there will be a packet available at the district, um, is like this. Declaration of candidacy as well as other documents that have to be filed. You can get them at the district office. You can also get them in our office. They have to be filed in our office. Can't be filed with the district office. It has to be filed with us because we are conducting your election. Now, why are we conducting your election? Because years ago PCOE and Plumas

005Unified, uh, came together and said, "We just want the elections office to conduct our elections with the, uh, even year elections in November." And so, that's what we've done. If you ever want to change that, you can do whatever you would like to do with that. But as I'm retiring on January 4th at noon, um, you'll you'll deal with the whole new regime [laughter] doing that. So, with that being said, the declaration of candidacy as well as other forms, it's not just the one piece of paper. There is no filing fee. There are no nomination signatures. But there's a whole packet of information that has to be filed and you have to qualify as a candidate. As well as if you go to election and you're wishing for a statement of qualifications to be printed

006in the voter information guide, which is the local voter guide that goes out to all registered voters in that trustee area, that is a, $400 fee that is paid by the candidate. That is not paid by the district. That is not paid by the elections office. So, that's that's the cost. Uh, that's the only cost, uh, if you are running for office. Otherwise, if you're taking in or expending any money, there are Fair Political Practices Commission forms that need would need to be filed, um, but we have those in the office as well Uh, if you're deciding to have a campaign and a candidacy. So, any questions on that? >> To go >> [clears throat] >> To go back to your an incumbent not filing from August 7th and then outside of that person has

007until when again? You said 5 days? >> Yes. >> Until August 12th. >> Thank you. >> Yes, I think so. >> Okay. >> And are we clear as to why all five trustee areas are up for election? >> No. >> The why now? >> Correct. >> [laughter] >> Which is why they brought me this handy dandy little chart. Okay. >> Cuz that's not cool. >> You had a question, Mr. Dehner? >> It was So, if we are all up for election, is there a system to make it so that we in 4 years or how long our term is, uh, not all up for election again cuz that is something that I have an issue with because that makes it really hard if there's a new board >> Yep. >> and a whole bunch of

008new faces that don't know how things are going. >> Absolutely correct. And that's why all terms are staggered. Even your terms now are staggered. >> They don't look like it. >> Well, they are staggered. >> Okay. >> Because some of you will be up for a 2-year or unexpired portion of the term, and some of you were up for a 4-year or a full-year term. Because we know you were appointed to the board, you can only a board, not just this board, you can only fill that position until the next district election. The next district election is November. So, let's just say candidate 1, 2, 3, 4, and 5. Okay? So, this term is 2024 to 2028. This term is '24 to '28. This term is '24 to '28. This term is 2022 to 2026.

009So, if you notice, the terms are in fact staggered. However, if you were appointed mid-term, you can only fill that position until the next district election, which is 2026, which is why trustee area one, two, and three are two-year positions, and trustee area four and five are four-year terms. >> On this next election, that's what those terms are. >> 2026 election cycle, that's what you have. So, terms are always staggered. You may have a brand new board, but the terms are staggered. So, in two years, you will have three up for four-year terms. >> And 26 to 30 and 30, um, would be the next series of terms. Yeah. Goes along with special districts, it goes along with school districts, hospital districts, >> [clears throat] >> those. So, that is why there's a differentiation in

010the terms because Ms. Klein did not file in 2024, so she was reappointed to the board. So, now she's up for the unexpired portion of the term, which is a two-year term. And that is outlined on the declaration of candidacy, whether it's a two-year or a four-year term. Okay? >> Thank you very much, Ms. >> [laughter] >> Okay. Um, I also have >> You're going into teaching. >> I'm sorry? >> You're going into teaching. >> She's retiring. >> [laughter] >> Two two hours. 22 years. >> I'm going to leave my cards with Miss White. My personal cell phone number is on there. If you have any questions, you can text me. If it's 3:00 in the morning, text. I'm not going to respond at 3:00 in the morning, but or you know where to find

011me. I'm in the corner of the courthouse and I'm there. >> Thank you. >> There's always sub positions though. >> I'm sorry? >> There's always sub positions. >> [laughter] >> Yeah, you never know. >> So, it seems like you're still flexible on the January 4th date. >> [laughter] >> Oh, yes. I am flexible. Until noon that day, I'm flexible. That's when the government code says I'm done. >> [laughter] >> No, it's been my honor to serve and I'm here to answer any questions and you know, you see me in the grocery store or you see me in the ball field, I'm more than happy to answer any questions. >> Congrats to you. >> Yes, thank you for all you've done. >> Well, thank you. I appreciate that. >> Thank you so much. >> And I

012don't have short-timer syndrome, although some people are saying that, I don't. I'm still there working. [laughter] >> I can believe you. Thank you. >> All right, we'll move along. Any public input? Hearing none. Oh, go ahead, Lori. >> Um I just want to say that the graduate pictures are so popular on the Plumas Sun. We, you know, we see how many likes and they get 300, 400, 5, you know, so I just want to tell you that. They're people like those. They like those and the honor roll, so I'm trying to get the honor roll next. >> Thank you for posting those. >> Yeah, I know. It's I like seeing them, too. >> That's wonderful. Thank you. All right, moving on. Student achievement. PCOE PUSD local control and accountability plan for 2026-27. >> Yep, Barb's

013queuing it up. >> It's LCAP season again. Um we are in year three of the three-year cycle. So, just a few reminders. We do share an LCAP for PCOE and PUSD. And um um There we go. I need to turn it on. I'll just stand right here. Oh, thank you. Um We develop one LCAP um and our LCAP explains how we use additional funds um to help increase services for our special populations, students with the greatest needs, EL, foster homeless youth. Um and No, wait. No, wait. Thank you. Um we have annual expected measurable objectives and they answer the question of how will we know if our actions and services are making a difference for our students. And I report those to you at our LCAP midyear review every February. Um Um so our goals

014for our annual expected measurable objectives, um fully credentialed teachers, sufficient instructional materials, implementation of state standards, parent and family engagement, and a positive local climate survey. Um 3% increase in our CAASPP and ELPAC scores, college and career indicators, um a 3% increase in students who have passed their AP exam with a score of three or higher. Uh 3% reduction in chronic absenteeism and uh dropout rates, 4% increase in our suspension rates, a 5% increase in English learner reclassification. [clears throat] Um facilities rated in good condition and then our goal is to reduce expulsions to zero by 2027. We have eight goals in our LCAP. Um and then we'll start developing a new LCAP for um, the next the next cycle. Our broad goal number one is student success and well-being. These are These probably look

015very similar to you. They haven't changed much um, for three years now, but goal number one for student success and well-being um, provides support for English learner students. So, one addition we've had this year is um, the county office is funding an EL coach um, to help support our um, English learner students and we're using different student systems for that. Um, support for alt ed and expelled youth. So, that just pays for staffing. Um, additional SEL supports. Um, while we did have layoffs, we were able to keep one grant funded student services coordinator. Um, we have two behavioral health um, specialists. One is funded on the county office side and then a wellness coach that's grant funded on the county office side. Um, we're continuing to support PBIS at all school sites by giving a

016$3,000 allocation for PBIS. Um, and then we have after school and summer programming through our expanded learning opportunities program. Um, but and then supporting foster and homeless youth. That is for our Wendy James, our liaison. And then CTE to support our high school of career technical education supports. There's more in goal one. Um, i-Ready diagnostic. It is a requirement for grades two through eight to have a diagnostic tool. Um, and we use i-Ready. And then we support a learning management system for our high school teachers and we use Canvas in our district. Um, and then expanded access to our arts education. Um, and then providing library support. And so, that uh, funding is to support the staff and then we give each library a $2,000 per year um, budget for whatever resources they need. Goal

017number two is financial stability. So, for PUSD, our goal is to reduce our structural our $9.5 million dollars deficit and start to pay back our loan and build a reserve. And then for PCOE it's to maintain a balanced budget and reserve. Goal number three is staff recruitment and retention. Um so providing professional development for our staff. Um we have MTSS team leads, we have curricular team leads, um we have a new math implementation lead um this year and that will be supported for two years for our new math curriculum for a while um just to provide additional supports. Um some some PD that we have planned this summer is step up to writing to help support our um teacher K-3 teachers with writing. EL support um or para training and then our big our big

018goal this year is uh math adoption training and providing that support for our math adoption. Um we use a standardized tool for classroom observations and walk-throughs and that's called Evaluated um and new teacher and administrator induction. So once a teacher or administrator has completed their tier one work, they have to go through a process to clear their credential and we help support clearing credentials. Goal four is family and community engagement. So our goal is to enhance parent participation rates, um expand community school services, and provide free meals to all students. Goal five is around facilities. Um implement our technology recommendations, provide one-to-one devices. Um so net we're working on a plan that will change a little bit. Students will have access to a device that doesn't necessarily mean it will be one-to-one because the research

019is out and I'll share more with you as we develop that plan this summer. Um and then implementing a staff computer replacement plan, hiring technology support staff, um routine and the maintenance plan, and then we're going to finish spending those Measure B funds. Goal number six, leadership. This is for administrative support in the form of a VP, a teacher on special assignment, or athletic director. Goal number seven is we get um funds that are called equity multiplier funds. And so, our school that uh was identified for receiving equity multiplier funds was Jim Beckworth Continuation High School up in Portola. So, we use those funds to pay for the staff development at that school. And our last goal is we have to we had to do a needs assessment to use our learning recovery emergency block

020grant funds. And our needs assessment said that we have a critical area of need for our EL students, our English learners, and then math. So, we are using those funds to support our math implementation. Um we we hired a two-year position for a math coach for K-8, and they will go around the district and help support our math implementation. And then each school site will have an implementation lead where they'll go to Shasta County Office of Ed and collaborate on best practices around math framework. Um and we'll have a way better math roll out than they've had in the past. Um and then we're allocating $15,000 um for It's a stipend position at the school sites. They get a stipend per school year for supporting math implementation. That is the super quick version. The full

02188 pages is available for you to read from page to page um in the board packet. This is information only for tonight, and then we'll bring it back next week um for adoption. >> That was so nice. That would have been nice to see ahead of time cuz I really tried to read that. >> Oh, well then I'll you know, next time I'll bring it >> that was super help I mean, so that would have been nice. >> So, for the El Capitan review, I'll send it to you before. >> Okay. That would that would be good cuz that was a lot easier than >> Yeah, so nice that I'll write it for you ahead of time. >> Yeah, to read. >> Yeah. >> And anyway, okay, I don't understand why they said >> what

022that means. >> Yeah. So, I will just leave my questions because they were pretty much answered. >> Good. >> Except for the tech. So, but I'll >> Just reach out to me if you have any >> Yeah. Yeah. I'll just look into that more tomorrow. >> Okay. >> All right. So, this was for information only. Um item number three, public hearing of the local control accountability plan. This is a procedural item. There is no action required. Is there any member of the public that wants to say anything? We are on >> You didn't tell me to open the public hearing. >> Oh, I'm sorry. I will open public hearing. May I close it now, Barbara? Okay. It is closed. All right. Moving on to fiscal. PCOE resolution 2526-11, education protection act. Stephanie? >> Yes. So,

023we are given specific money based on the education protection act um to allocate funds directly to certificated employees. This resolution just demonstrates the money that we are receiving goes directly back into funding, specifically certificated salaries. >> All right. I will entertain a motion to approve PCOE resolution 2526-11. >> I'll make a motion to approve resolution resolution 2526-11 as presented. >> I'll second. >> Any discussion? All in favor? >> Aye. >> You want to do a roll call? >> Yes. Klein? >> Aye. >> Harrison? >> Aye. >> Krim? >> Aye. >> Johnson? >> Aye. >> Gail Montgomery? >> Aye. >> All right. Moving on. Budget calendar adoption. >> Yes. So, during our thick macro evaluation, you know, one of the things that helps keep budget on track and helps everyone informed is a budget calendar. So,

024this is just an adoption to align with all of our budget reporting periods and the infrastructure that surrounds it. So, this is a budget this will be a budget calendar that will be adopted. So, we will follow it um a formal method of um tracking our budget cycles. >> All right, I will entertain a motion to adopt the 2026-27 budget calendar. >> I make a motion to approve. >> Second. >> All in favor? >> Aye. >> Item number C, PCOE P EUSD MOU adoption. Go ahead, Sergio. >> Yes, so this is going to be a part of every budget adoption. I think it's really important for us to review this on an annual basis that is a collaboration between both the district and um the county. So, this will be adopted on both ends of

025of the um boards. So, what this does is outline the different shared services. So, for example, technology, HR, and business office are county office ran programs. They are county office employees, and so the process will be ran on there, and then they're billed back to the district for services. Except for the HR director who is on the district employee who's billed back to the county. So, when it comes to positions, they are specifically outlined here the percentage based on their role. So, an example of one is that now we have account an accountant specifically assigned to the district, and an accountant is specifically designed for the county. So, you'll see 100% of their positions are funded independently. Um so, each one of those the rest of them are mostly structured in a 75-25 model. Um

026this can be updated at any point. So, as the other single singles continue to develop their MOUs and finding a really common way for us to structure them with nuances as we learn of our uniqueness as a as an entity. Um this can always come back to the board. The budget will be updated to reflect it, and then they'll be adopted normally together. So, whenever you see the MOU again, you'll probably see a revised budget with it because it does control both of them. Okay? Um there is a shared cost on both sides. So, you'll see in your budget there's a bill back, but there's also an expenditure line. So, there are They're just going to go back and forth to the outlined here specifically for positions, and then the rest of them are going

027to be based on our normal procedures. So, when we have an expenditure all of a sudden that's not planned for, both sides will look at that expenditure, determine the shared value, and then when it goes to the board for a contract or anything like that, there will be all that formal backup to go with it. Same for pars. Any position that's not permanent or grant-funded, let's say, there's grants on both sides, an MOU will come together, they will be added, and the position is will be agreed upon and approved in an HR agenda. Thank you. I will entertain a motion to approve the MOU between PUSD and PCOE. >> I'll make a motion to approve. >> I'll second the motion. >> All in favor? >> Aye. >> All right. Position control for 2026-27. >> So,

028again, this is another item that will be adopted with the budget, right? It's significantly majority of our budget is people. So, it's really important for us to designate what those seats are. So, position control, while there are names listed, position control is about the seats. So, while these names may change, the important factor is what is the position, what is the funding source of it, what is the approved FTE, and the placement of the position. So, while the names may change, the positions are the seats that you are all approving. So, this is how we develop our budget around our staffing. So, I recommend approving as is. Any additions or subtractions have to be board approved as well. So, we will bring those forward. We'll We'll be presented in the county board. >> Thank you.

029I like it a lot. >> Mhm. >> I'm going to borrow it. All right. I will entertain a motion to approve Sorry, is that Is that it? Informational? >> No, this isn't it. >> Oh, I went Sorry. >> [laughter] >> Um I will entertain a motion for approval of the 2026-27 position control report. >> I'll make a Go ahead. >> I'll make a motion to approve. >> I'll second that. >> Any discussion? I didn't get the last one. All in favor? >> Aye. >> All right. 2026-27 proposed PCOE budget presentation. >> All right. Okay, so today is just the presentation. You'll be adopting the budget at next board meeting, but this allowed us to share what's in the packet and giving time for the community to reach out to me with any questions or any

030clarifications is also during the public hearing. So, the PCOE budget, I'm just going to remind us where we are in our budget cycle, which is always an important part, and you just adopted a calendar that aligns with our budget cycle. So, today we are in El Capitan budget adoption cycle. So, we're functioning in current We're functioning in future year. So, the cycle will always be future year, current year, and prior year. So, we're talking about adopting for next year, and then when you see us again, we'll be talking about adopting for a revision for current year if needed, and then you're going into prior year. We're going to be auditing presenting how 2025-26 ended. Okay? So, you're constantly functioning in those three years at the same time. All right. Why are we having the public

031hearing about our budget? So, per Ed Code, we are required to adopt a budget by July 1. We're not the only ones required to adopt a budget by July 1. The governor is required to adopt his budget by July 1, okay? And so, what it is is that we take all of the assumptions moving into the governor's budget, and we predict the way we think that he's going to adopt his budget and build it into ours, okay? We often call those assumptions. We are assuming certain things to move into the budget next year. We also are required to hold a public hearing a minimum of 3 days before the budget is adopted. This allows the community time to view the documents, bring forward questions, and that's what the public hearing's for. Anything that happens during

032the public hearing can also be put into effect and changed before the adoption happens. So, it really is supposed to be a feedback and opportunity for the community when adopting. Along with the budget, as you just saw from um I don't know, Melissa. Missy. [laughter] Uh what we see is that the LCAP also goes with hand in hand with our budget, okay? They're two documents that are required to be adopted at the same time. They have to have a public hearing, and then they have to be adopted in a secondary meeting 3 days later. The reason why the LCAP is a part of the budget is because it really controls how we spend those supplemental and concentration grant money, all right? So, everything that's in the LCAP has to be developed inside your budget, okay?

033They cannot live as separate items. So, what's the purpose of your budget? Um like your interim reports are to update you on how your year's going. How are you going from, right, where you said you were going to be to where you are right now. The budget is about building that beginning point, right? We're saying we believe that we're going to end up here. We think we're going to get this much revenue. We think we're going to spend this much money. We assume these things about our enrollment. We assume these things about our ADA. They're all assumptions and projections. We do the best we can with all the information the state gives us and all our educational partners, our collaborations with our sites, our teachers, all of our data to create this projection. And then,

034as you've all heard me say, first interim is really your true first budget. That is when your staffing settles, your school year started. That's when you know how many kids are enrolled. That's when you get your first snap picture of how many kids are showing up to school, things like that. So, first interim really is when things the dust settles, right? But, we have to build that starting point, okay? So, we also use this as an Ed Code compliance checkpoint to make sure that we're following um, you know, all the EdCodes that are put into place and the requirements set by the state and federal government for our spending. And then of course, as every reporting period, we are still trying to prove not only can we meet our obligations in current year, can we

035meet them in two subsequent years? Right? It's not just about now, it's about the future as well. Okay, you've spent a year with me now. These acronyms should be something that you feel really comfortable with and when I even talk about them, you should feel strong that you know what they are. But ADAs are average daily attendance, which means butts in seats by kids. This is how most schools are funded on their LCFF. We are basic aid, but this does still fund other forms of revenue for us. COLA is cost of living. This is a percentage set by the state that increases our base funding for specific funding sources. Okay? LCAP is our local control plan that talks about how we're spending our supplemental and concentration grants to our high need students. LCFF is a

036formula that we use to establish our unrestricted funding sources. Okay? So that is the one where ADA or basic aid comes into play and it calculates us for us. Multi-year projection, SACS is our forms where we actually take all this data and we throw it in a common form for the state to evaluate. And then our UPC and our UPP is about those high need kids. This is our calculation of our homeless, foster youth, low income, and English learner students. Okay? When we have a higher percentage, it funds different funding sources for us and we know that they are higher need, which means we need to serve them at a higher proportionate level. Other terms, SACS are the forms that we're required. The difference between cash and budget, cash is literally what we have sitting

037in the bank. Budget is what do we think we're going to get? What can we plan to receive? So, while you may see a balance of we're planning on getting $2 million, we may have zero of that money. We may have all 200, you know, whatever it is. So, remembering that they are two separate entities, okay? Cash and budget. Actuals is what actually gets spent when you write the check and the money goes out the window. Encumbered means we're planning for it. We have a PO put in place, so we know that it's might it's going to happen, but no check has been written yet. And then lastly, the importance of understanding the difference between our unrestricted and our restricted budgets. Unrestricted is how we spend our operational costs. This is money that we get

038to allocate per whatever is decided by administration and, you know, need for the for this budget. Restricted is set The rules are set by someone else. They're set by the state, they're set by the federal government, they're set by a grant just a local grant, or even local donation. These are where we don't get to control how we spend it. It has to be spent within those rules. Okay? Which is why most of the budget is separated by unrestricted and restricted. All right, here's just a reminder of our county supported programs. We have adult ed, um, instrumental placement, business, payroll, front office, foster youth differential assisted, child development, opportunity and county community youth technology, outdoor ed curriculum, and our 2B. Just tobacco. Um, okay. So, I just wanted to quickly I spend a lot of

039time on the district side talking about how we're funded. I don't spend a lot of time with that when it comes to the county, and so I wanted to really break down the county's L C F F funding, okay? So, the county is funded differently than the district. So, when we talk about that we are a basic aid district, that's because our threshold property taxes exceeds our L C F F apportionment. The county's funded differently. There is no basic aid district or basic aid county office, okay? We're funded off of base grants and then additional grants, okay? So, what we do is our budget is supposed to support specific supportive programs. Okay? Or alternative education programs. We are not Our budget is not there to support direct student instruction. So, the first base grant that

040we get as a county office is the county operation grant. Okay? So, this is really where we take ADA from the district. We take ADA from our charter and ADA from our own programs. This is funded out of base rate and then multiplied by these enrollment numbers. Okay? So, that's the first half of our funding source, which is about $1.5 million. The two The two secondary grants that are on top of this is if you have special alternative education funding. Okay? So, one is based off of the actual ADA of your alternative education programs and the other one is just you have one. So, if you have a community school program, you get $200,000. Okay? So, it's really based on do you have a program? It's very similar to what differentiated assistance funding is. Is

041your district in differentiated assistance? If yes, you get this grant. Okay? And that's how we're funding some new positions to support these programs to to ensure that the district can get out of differentiated assistance. This money is to kind of push you out of a job, right? You don't want to be in DA, but they give you money to help you get out of it. So, those are the three Those are the four technically um grants that get added to a county budget. So, our operating LCFF funding is $2.3 million. Okay? And that's based on these different funding formulas. There are other resources that come into our federal revenues. So, we're just break that down here. So, we also have federal revenue, state revenue, and local revenue. Okay? Um from what we can see, we

042will be seeing an overall decrease in revenue, but that's mainly because of our restricted funding. Restricted funding can be a grant that has multiple years, but they gave you all the money one time, right? So, if you get a million dollars in this year, but they said you have to spend it over the next 3 years, you're not going to see that revenue come back, right? Our unrestricted comes from uh our LCFF, which I just talked about our funding model. Our state revenue is actually unrestricted when it comes to lottery money. Lottery money is considered unrestricted, however, it does have small constraints on it, so it's a funny unrestricted version of money because there's rules, but for the most part we get to support instruction. That's the whole point of it. And then local revenue

043uh would be based off of um uh any other grants that we consider in the 9000. So, it's an unrestricted grant that's given to us and and doesn't have the same restrictive rules, right? So, overall, we're going to be seeing a budget of about $4.4 million for the county office going into 2026-27. You can see that our You can see that if you're It's not the image very big, but it just You can see that we're mostly stable. It's just that restricted really went down because of those one-time monies. All right, planning factors for 2026-27. There are we call it It's actually called a super cola is what they're calling it this year. Don't love it, but it it's uh considered a large cola moving into next year. Um and it's actually two parts of

044a cola where really it's a base cola of 2.87, but then there's an additional cola of 1.14. We won't really see that. It doesn't really help us. It was there to be placed in for the new paid 14 weeks of maternity leave. So, that was why they gave us this additional money. So, they think if they just add it to our LCFF calculator that it will cover the cost of additional um paid leave, which um it for a county office will not benefit us in at all in the way that it's structured. Um and it may not go through, so also keep that in mind. It's projected and there's a chance the governor will not adopt. Other factors are STRS and PERS, which are a retirement required contributions to our employees. Next year, PERS is

045actually going down, which you'll see in the benefits kind of decreasing slightly because while the STRS has a statutory limit on how high they can go, they can't go higher than 1910s, PERS does not. So, we're at the whim of what they give us and updating us, but we do see a trend of going down, which is great cuz the last few years it has skyrocketed. So, um we also are going to be using a cost a consumer price index of about 3.76, which is outlined to support the planned expenditure increase for non-personnel costs, right? Um gas, supplies, shipping, all of that >> So, 3.76? >> Yeah, 3.76. And then a minimum wage increase, which does not affect us in the county office, but it's always something to keep an eye on cuz at some

046point when your salary schedule hits that point, you're going to have to really consider that impact. All right, expenditures really quickly, um you can see we're pretty much really remaining very flat in our expenditure costs here because um you know, making sure that we are having a good position control. So, estimated actuals is about having that strong position control, right? You really it's very exciting to see that I we can trust our estimated actuals as closely as possible moving into next year. Um we are looking at a lot of, you know, our contracts and things like that to ensure is it a need or is it a want and evaluating them really closely. So, I'm very happy to say that the county budget is currently a balanced budget um and that we don't show signs

047of any fiscal distress. We are excess spending, but not excessively, which is very important for us to to see is that when you're dealing with such a small budget, a shift can really impact us, right? And all of a sudden increasing spending could hurt the budget in a pretty dramatic way because how small it is. All right, so this is just a multi-year as I said we're required to show multi-years. So you can see in a multi-year you can see that the overall expenditures are decreasing but that is because of grant plans. We have multiple grants expiring in 25 26. We have a few more expiring in 26 27. And if you really read the narrative you'll see that I list them out very specifically on which grants are moving forward. In the narrative which

048is the first 20 pages of the packet are really the only ones you ever need to read. I know it's a very large packet. It clearly states all the variants and why what we're adding what we're taking away and any of those changes. So if there's one takeaway I want everyone to take from today is that our ending fund balance is mostly assigned. Okay, our ending fund balance is not just here to be assigned, right? This money is mostly one-time that is not going to come back to us and will not be able to be recuperated, right? So our first half of that of that $7.6 million ending fund balance in 26 27 is restricted. So already take that that we have no choice in using that in any way. We are required to have

049economic uncertainty. So we have our million dollars in our economic uncertainty. We cannot make a special reserve fund. Districts can, they can put it in fund 17, save it there for a rainy day. County office cannot. So we had a resolution adopted this year that said, "Okay, this is our savings account. We're going to put a million dollars here just in case. This is our money that can't be touched unless we make action, okay?" So our true cost in our ending fund balance of fund one is about 1.4. All right, because the remaining amount of that about $3 million is forest reserve money which is one-time money that we got approved for 3 years. All right, this is should not be used for ongoing expenditures because one-time money should never be used for ongoing expenditures,

050right? So it'll come up with a plan. We're using it for a lot of professional development to ensure that we're continuing the work that Fit Math has put out for us and making sure that we're developing all members of our team. So, while it looks like a big ending fund balance, it truly is very balanced and within the threshold, I believe, of this of this size of a budget. All right. So, the next time you won't see me, but potentially will see Jordan is if we need a 45-day revision. 45-day revision is an informational item. It does not involve any adoption. All it is is if there's something drastic happens in the state budget, we will let you know if that happens. But, the final way is your unaudited actuals. So, in October, you will

051be presented how 2025-2026 ended, right? So, this is the estimations of how we think we're going to end. That will be they're done. There's no more expenditures. Nothing's happening. This is where we think we're ending, which then changes how the beginning balances start, right? So, there's always going to be that shift at first interim showing ending balance to starting balance. And that is the budget. All done. Thank you. >> Thank you very much. >> Of course. All right. This is informational only and we will return for approval on the 24th. Uh so, for now, I will open the public hearing for PCOE 2026-2027 budget. Comments? Hearing none, I will close the public hearing. Moving along, uh information only, PCOE service contracts. I'll take that. I have a question, Mr. >> I just had a question.

052>> I mean, I know it's informational only, but uh the Think Math, why are we paying them for IT? >> That was what I sent you in the email about that we are partnering with Think Math for them to come in and do our >> Thank you. >> accounting and >> I missed I missed that correlation. Thank you. Yep. Perfect. Thank you. All right. Uh check register, personal items, nothing there. This one. All right, consent item, minutes for the 513 regular board meeting. I think only Chelsea, Matt, and I can vote on that. Am I correct? All right, I'll entertain a motion. >> I'll make a motion to approve the board meeting minutes from 513. >> I will second that. >> All in favor? >> Aye. >> To abstain? All right, any future agenda items?

053I will adjourn the PCOE regular board meeting. >> You ready? Okay, we're live. Uh welcome everyone. Welcome to the PUSD regular board meeting. And please join me for the flag salute. Ready to pledge? >> I pledge allegiance to the flag of the United States of America, and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. >> Okay, County Administrator, Mr. DiVincenzo. >> Present. >> COE Superintendent, Andrea White. >> Present. >> Okay, number six, the approval of the PUSD agenda. Uh we will approve the agenda with the elimination of item number 12. Uh we're not quite ready for that one. Um I'll need my glasses for this. Um educational partners update, Andrea White. >> Okay, so this month um we're just going to finish out with uh

054an update on our Fiscal Map process. So we just finished the second round of our comprehensive report. With Fiscal Map, they were here for the month of May and a couple days in June. Um so that went really well. It seemed like it went really smooth. They had a lot of positive things to to say. One of the things that I would really like to recognize um and thank our teaching staff for doing such a great job educating our students. Um that was one of the big things that the pupil achievement team came back and said after visiting all of our sites and popping into classrooms, was that they saw strong instructional practices being implemented by the teachers district-wide. So that is awesome. That's really great and that's um great for our students' education. So

055kudos to our teachers for digging in and doing that work. Um so Fiscal Map will complete that report, the second comprehensive report should come out in October. Once that comes out, they'll come back and do another presentation. Remember the second report builds upon where we started and how far we've come. So, um like I said, everything was really positive from them. Of course, there's always things to improve on, which we're working on. Um but, we're excited to see the second report and see all of the growth that we have made. >> And that's it. >> All right. Um item number eight are herbs element. Um if you've been following this, um I would like to read a message joint communication from CSEA and Plumas CSEA Plumas number 193 in the district. So, bear with me

056here. The Plumas Unified School District and the Classified School Employees Association and it's Plumas Charter number 193 are pleased to announce that we have reached an amicable agreement regarding the dispute surrounding health benefit opt-out savings. Through open dialogue and a shared commitment to our community, both parties have successfully resolved the dispute, effectively canceling the scheduled public employee relations board hearing. So, a correction, the district's community information sheet sent on April 27th, 2026 included information that both parties feel need to be clarified. It was not the district's intent in this communication to disparage or discredit CSA CSEA, but to provide the community with the district's position on the potential fiscal impact of the pending litigation. Further, the district communication stated that the district used the existing reserve to provide $54,900 in direct health benefit support or

057$900 per employee. The parties would like to clarify this health benefit support was due to CSEA negotiating and advocating for its members to receive some financial relief. It was CSEA's proposal and the district collaboration that put $54,900 into its members pockets. So, the details of the agreement, this settlement represents a balanced approach that honors the hard work of our classified staff while maintaining the district's long-term financial health. Sustainability, the agreed-upon terms avoid impacting the district's general fund, ensuring that student programs and essential services remain uninterrupted. And support for staff, the district will utilize identified one-time funding to settle the dispute, providing immediate value to our employees without incurring unsust- unsustainable long-term debt. Clarity for the future, the agreement provides a clear, mutually accepted definition definition for benefit calculations, preventing similar disputes in the future, and

058allowing both parties to focus on our primary mission, student success. So, moving forward together, the parties are proud that this resolution was achieved through local collaboration rather than litigation. This outcome reflects a mutual respect and shared goal of ensuring schools remain a supportive environment for our dedicated classified staff and members, students, and the PUSD community. We, as Plumas Unified School District, extend our sincere thanks to CSEA as our partners in labor for their continued dedication to to finding a resolution and working collaboratively through the historically difficult times. The district remains committed to transparency and will continue to keep the community informed as we implement the terms of this agreement. So, by finding common ground, we have ensured that our resources remain where they matter most, in the classroom and in support of our students. So,

059uh CSEA's mission is to improve the lives of our members, students, and community. So, uh that was a situation that could have um potentially really been a real difficult situation for the district, and uh CSEA was very um collaborative and cooperative in that process. So, we just wanted to read that statement and thank them for their cooperation and for their their flexibility in that. All right. What we've all been waiting for, this presentation. Uh CTE, Career Technical Education, uh we have our very own Rachel Molsbee to give us a presentation. Come on down. >> Um the clicker probably won't Thank you. All right. Good evening. Thank you for having me here. My name is Rachel Molsbee, and I am the CTE um program supervisor for both the PUSD and PCUHSD and I am here today

060to talk to you about our Career Technical Education program, and where we've been, what we offer, and where we're going. Okay. First of all, I would like to say thank you to our CTE team, because without these teachers and the staff, everything I'm about to tell you we would be would not be possible. It is through their amazing dedication and hard work and heart. We are honored to work with them every single day, and it is absolutely a privilege. Okay. So, what is CTE, and why does it matter? See, Career Technical Education takes our academic learning and our real-world experiences, and puts them together, and teaches our kids to critically think. It teaches them leadership skills, and it teaches them to look out once we leave our school districts, where are we going? Build that

061career and then see that career. Right? So, this includes such things as they are getting dual enrolled credits right now through FRC. They're getting certifications such as their food handlers permit, OSHA. Um they are We have some of our students that have been employed right out of high school because of the hard work they have done through the CTE program. So, CTE keeps our doors open for our students as they are looking out past their time here. What are they learning? Um they are learning to build. So, we have students who are constructing uh they're roofing, they're building walls, they're doing electrical work. We have students that are doing vehicle repairs. We're going to talk about all of these in a little more in detail. We have students who are serving. They are catering to

062our district as well as to our communities. We have students who are in healthcare. They're in our hospitals going through rotations, seeing what's available. We have students who are creating design visual arts. They're making stickers, they're making hats, they're making posters. We have community members coming to our students telling them about events and saying, "Can you help us advertise this?" And they are exploring. We have students that are learning to fly drones. They're exploring themselves, their own lives, and where they want to go. So, We have currently next year we'll be offering nine CTE pathways across our district, which is district-wide, and I'm going to go into each of these. So, hospitality, tourism, recreation. This is our culinary arts. Our kids are learning those culinary arts skills, they're learning business, they're learning leadership, which is

063a huge part of CTE. Those work skills our employers are saying, "We want our students to show up on time. We want these skills." And this is what we're bringing in to our to our programs as well. Ag mechanics, are two different pathways. We have Ag Mechanics and Construction. Ag Mechanics does everything from welding to plumbing to construction, and then we also have a construction. And we have community members came to our Ag Mechanics teacher and said, "Hey, I went down to Home Depot and could not find a shed that fit the standards I want. Can you guys build me one?" And they built them one, and it's sitting up in Chester. Um and then we also have some other sheds at Portola as well. Automotive Technology, everything from uh brake brakes to complete car

064restoration. Our kids are bringing in their own cars, their parents' cars, right? And we also have a program here called Alldata, where students are making their repair orders, which is a program that's applicable in the auto field when they go out into the That's exactly what they're going to be doing. Health Healthcare and Dental, right now we have an eight eight-week rotation for our kids that are job shadowing in our hospitals and seeing all of the different options, right? From emergency care to accounting. What's available in the hospitals? Uh we also have We're able to grant funding to getting a 3D anatomy tool that they are able to look at the body and turn it completely around, and it's a phenomenal tool. We're really excited to get that for them this year. Aviation and Drones,

065they are going to get their FAA license and be able to fly drones, and we'll see the variety that they can that they can be employed by, whether that's the uh forest service, whether that's agriculture, whether it's realty, right? So, it's all over. It's such a broad field. Arts, Media, and Entertainment, I talked about talked about this a little bit, but we They They're learning Adobe. We're seeing the the they're making posters. We're seeing the stickers. We're seeing that advertisement get out there. And finally, next year we are going to be offering two new pathways. One is early childhood education, ECE, and the second is our artificial intelligence, AI. It is here. It is real. We want our kids to have that information and to be able to use that tool to the best of

066their knowledge. We're going to be talking about the the moral aspects of it. How do they implement it? How do they use that? As far as our early childhood education course, we have a team this summer working together with Feather River College. And those two courses will be dual enrolled. And so, by the time the students are done they will have finished two of the four core courses that FRC asks for. And those students can go directly into FRC. They can transfer. And they can be immediately guaranteed because they're learning those basic skills of what how the child develops and how the child grows up, right? So, it's very applicable all over the field. Um this year we ended up with 54 of our high school graduates district wide walked across with a cord, which

067is A HUGE IMPROVEMENT. >> [applause] >> FOR OUR TEACHERS. AND THAT'S THE HARD WORK OUR teachers do. Um what does a completer, what does that mean? Well, it means we have two consecutive courses, a concentrator followed by a capstone. And our teachers work really hard. The concentrator is our we're establishing those skills, right? By the time we get into our our capstone, we are looking at the advanced skills. We're looking at work shadows or job shadows, excuse me. Um we're looking at the higher level thinking. So, those students that have gone through both of those courses with a C or better are walking off of our stages with our graduation stages with doors open for them in ways that they would not have been. So, huge congratulations to them. Where are we going? Our big

068focus has been and will continue to be with CTE. Number one, growing deeper. We want to make sure that what we're offering are the skills, that we're not just offering something on paper. Our students walk off and off of these campuses, out of these courses, with the skills to be a mechanic, with the skills to be to build a house, right? So, we will continue to work in our depth as far as the the skills. And we're also really working on our partnerships, building those communications with our business owners, and getting our students out there in the field. And we're also working the colleges, because what we see when we can get our students out there, we're breaking those barriers for them, right? So, now they're more comfortable being at the hospital because they spent

069eight weeks there. And they're more likely to show up there and apply for a job. And they're more comfortable going to college because they have those credits and that experience out there. So, that's the highlights of our CTE program. And I just again, thank you so much for being here. Any questions on me? >> THANK YOU, RACHEL. >> [applause] >> SO INCREDIBLY VALUABLE. THANK YOU. Public input is our next section. Do you have any public input? All right, thank you. And then we will get up to student achievement. And Melissa Leal is here to go over our local control accountability plan. >> So, this is an information only item that you'll find in the board packet. Um it will be brought back next week for approval. >> Um >> and so, this is a public

070hearing. And so we will open the public hearing at this time. Is there any public comment on our pupil [cough] control accountability plan? Hearing none, we'll close the public hearing. All righty. And then, um, the PUSD SELPA annual budget and service plan, is that you? >> I'm going to take it. >> Oh, that's you. Okay. >> So, uh, this is a similar to our LCAP, but this is actually a funding breakdown of SELPA funding, which is our special education. Um, and so this is a document that outlines the various funding models, how it's being spent, and um and we're this is just for information today and will be brought back in next week's meeting. >> Okay. >> Full packet is in there. Oh, I apologize. Uh, the revised version of this packet is what we're

071asking, um, for it to be reviewed. Both are in there, but there's a revised version. We worked with CDE to confirm some details for us and so we really wanted to make sure that the accurate information got out there. >> All right. Thank you. And so and SELPA is a special education local plan area, um, and so we will open the public hearing at this time. Any comment? Okay, we'll close the public hearing on the PUSD SELPA annual budget and service plan for 2026-27. All right. And that brings us to item 12 and that was, uh, scratched from the agenda. Um, I think we'll bring that back, uh, next next time. Okay. Um, item 13 is fiscal and the first part of that is our budget calendar. >> Yes, bear with me with all my

072items. Uh, so the budget calendar, um, does align with our budget cycle. So it's very common for us to create a official process for keeping us in line with our budget development starting from this moment, right? Starting from when we get to the governor's budget in January all the way until we adopt. So, this budget calendar is just a formal way for us to align our practices internally to an external process. So, we're just asking for adoption of the 2026-2027 budget calendar. >> All righty, this is an action item. So, I will approve the budget calendar for the 2026-2027 school year. And B is Prop 98 annual report. >> Uh 28. So, this is our arts and music. So, this is a grant that we get annually. We receive money to support each one of

073our sites in arts programs. So, this is just an annual certification that says that we are currently not staffing any arts program teachers with this money because we already have existing art programs. So, this is money that we receive to support those art programs outside of staffing since we already have an existing program. So, this is just a certification of our allocations for the 2026-2027 school year. Oh, sorry. For what happened in 2025-2026. >> Yeah. >> Yes. Okay. All right. >> These are posted on our website as well. >> All right. Um the action item I will approve the Prop 28 annual report for the 2025-2026 school year. And item C is the PUSD resolution education protection account. >> Yes. So, we're required to have a portion of our funding, which is called EPA, protected

074to fund specifically student instruction. So, these funds, this resolution is just demonstrating that our plan for 2026-2027 is to use these monies as they are intended, which is certificated salaries. >> Okay. Thank you. Um I will approve the PUSD resolution 1702 education protection act account. >> This requires a roll call vote. County Administrator Richard Du Varney. >> [clears throat] >> Yes. It's a little weird, but okay. >> [laughter] >> Um and then item D is the PCOE PUSD MOU adoption. >> Yes, so we adopted this on both sides. So we adopted this on the PCOE side in our earlier meeting. This is an agreement between both organizations because PCOE provides direct support in HR, business, and technology to the district. Um it also supports in financial, or sorry, technology softwares and other um programs that

075exist and managed by the county, but the districts use them. So this MOU outlines how that structure exists. Um the majority that are set in stone are our position funding. So you can see in there that it outlines the percentages of which those positions are funded and built back to each to each entity. So for example, while those positions in HR, business, and technology are on the county side, the district does maintain about 70%, 75% of those actual direct services. So there's a bill back from the county and that we pay for. On the same side, we do have some expenses on the district side to be built back to the county. For for example, our HR supervisor, that is a district employee 100%, so 25% is being built back to the district to the

076county. So you will see both revenue and expenditures based off of this MOU. We also tackle unique case-by-case basis following our procedures of HR and purchasing. So at any time an opportunity comes up for an expenditure to be shared from both organizations, both our superintendents will work to collaborate on that and it will be approved on both sides and then process through our procurement process. Same for positions where if there's a grant maybe on both sides they can get funding and can fund one position. They'll determine which where it's placed in the staffing and then build back for the appropriate amount. Both of those process get board approved through contract, through our procurement process or through our HR process. >> Okay, it's good thing we like each other. >> Oh, I forgot that this will

077be brought forward every time we adopt a budget on annual review but can be revised at any time and you will always see a revised budget going with it because it is really outlining some significant staffing and other implementations. >> Implementations. Okay. I will approve the PCOE PUSD MOU. All right. And then E is position control. >> Yes, so another item that plays a very large role in our budget. So we are asking to approve on an annual basis what we believe the staffing which is the seats of our positions going into next school year. The names may change but this is what we are have built into our 26-27 budget. Okay, so what this does is says the position number, the funding source, the FTE and those items. And so anything that changes from

078here on out will go through our HR process and board approval if we eliminate or bring in new positions. >> All right, position control for the 26-27 school year that is approved. And F is our budget presentation. >> [laughter] >> I know that's why you're all here. >> Yes. >> It is my last budget presentation so very bitter sweet. Okay, PUSD's proposed budget for 26-27. I'd like to remind us of where we are in our budget cycle. So, we are currently doing future year. We are adopting our budget for next year. Um and so, we're always in a cycle of current year, prior year, and future year as we move through the budgeting year. This does align with our recently adopted budget calendar, keeping us in um in timeline with state compliance. So, while we

079are adopting our budget for next year, we will be moving into um current year in July if there is a need for a 45-day revision. Why are we here? We are here because Ed Code tells us to be here. No. Uh so, we are here because we need to adopt our budget just like majority of budgets by July 1 when it comes to California education. So, not only do we have to adopt our budget by July 1, the governor has to adopt his budget by July 1. So, what we use is we take the assumptions he gives us in May, his May revise of his budget, to build out our budget for next year. Okay? Um while he may make changes by the time he adopts by July 1, that's when our 45-day revision is

080optional. Where there's significant changes, we can come back and update them. But, our timeline is the same as the state's timeline. So. Additionally, we are required to hold a public hearing. That means we need to hold an opportunity for the public to come forward 3 days prior to the adoption of the budget um to allow for comment, feedback, input. Um this is not only required for our budget, but also for our LCAP, which are always adopted together. Our LCAP is required to be adopted with our budget because it does significantly impact how we use our supplemental and concentrated grants, which are outlined by the state. So, we need to identify the goals and functions in the LCAP and make sure they are built into our budget. Um been an amazing collaboration with Missy, and we

081were able to create such an easy tracking method and I really think that a lot of work has gone into the budget to the LCAP and I'm really excited for when you get to rewrite one. Yay! >> [laughter] >> So fun for anyone. Which is the whole point of it is complete collaboration, right? It's It's really a document to set the road map for what's important to the district and where our funds go to to serve these high-need kids. So, the purpose of our budget is to create a road map for this year. So, this is where we're saying how do we think next year's going to go? How How many kids do we think we're going to have? How many teachers do you think we're going to have? What is the staffing of each

082one of those positions? How much revenue are we going to get? How many expenditures are we going to have? So, it's all really an estimation of where we believe next year's going to start with the assumption of also planning how this year's going to end. So, it'll be both estimating our plan for the remainder of this year and how we think next year's going to go. It also allows us to check our compliance. There's a lot of forms in this packet as you will see. It is a very large packet in adoption because we make sure that we're following ed code in our planning. Um, I've said this before. You'll You won't hear me say it again, but I'm sure you'll hear George say it again. First interim is really your true budget. This is

083as much estimation as much as possible with the with the assumptions we have. First interim is where you know how many kids you have in seats, you know how many staff you have and so forth. So, this is the best projection at the time that we have. Not only do we are required to show our revenues and expenditures, but we're also required to show can we meet our fiscal obligations today, current year, but also two subsequent years. So, we're it's not just about fiscal solvency now, it's fiscal solvency in the future. Um, you've seen this slide many times, but it's just a reminder that average daily attendance is where we talk about butts in seats, kids actually coming to school. If we were a LCFF funded school, this would pull how we're directly funded, but

084as a basic aid school, this does just support other funding models for us. COLA is cost of living, which is an adjustment the state sets to that base allocation for LCFF funding and certain grants. LCAP, [clears throat] as we explained, is the local control plan. LCFF is the formula that the state uses to determine that allocation from the state. So, it determines, oh, does your property taxes exceed your LCFF calculation? It breaks it all down for you. It allows you to come up with your allocations for each state apportioned revenue. SACS is our software that we're required to submit to the state, so it takes our unique financial system and submits it to the state so that they look at all the forms across all school sites are the same. And then our high-need kids

085that we talk about, which is our foster youth, homeless, low-income, and English learners are considered our unduplicated pupil counts. This allows us to fund our supplemental and concentration grant, which is what is about our LCAP. It also helps us with ELOP funding and other sources to allow us to serve those higher-need kids. Other terms I think are really important are cash, which is actually how much money we have in the bank, which is variant from our budget, which is what we're projected to have. So, while we get a grant notification letter that says we're going to get $200,000, if we have zero in the bank, we have zero cash, but a budget of $200,000. So, they are not the same thing and need to be held in different tracking models and different areas of risk

086when you look at them. >> [gasps] >> Actuals is when you write the check and the money leaves the door, but encumbered is when you say, I I would like to purchase that, it's been approved, and now that money is encumbered. It has a purchase order. So, the only way that our policies allow us to spend money is if we have that encumbered amount putting to place. This is to make sure that everyone who's supposed to know it's going to be purchased is aware of it, has been approved, and the vendor knows that money's coming to them. The last two are extremely important when it comes to our budget, which is unrestricted and restricted. Unrestricted money means that we can use this money to do general operating budgets. There are no rules and regulations on

087Well, there's rules and regulations on how we can spend it, but no one's telling us it has to be spent for this or has to be spent for that. We can spend it on salaries, we can spend it on operations, whatever is determined important and operationally necessary. Restricted means that there are rules. They have given us this money because of a specific purpose that we have to follow and report on often. So, when we think about our budget always being separated between those two items, unrestricted and restricted. Very common to deficit spend, which means you're spending more money than you're getting in when it comes to your restricted side, is a no-no when it comes to our unrestricted side. So, definitions. Something you've heard me say a lot when it comes to our district budget,

088which is deficit and structural deficit. So, as I just said, what deficit means is when you are spending more than you're getting in, right? Which for those of you who balance your own checkbook know that that's can be problematic. If you have a lot of one-time money sitting in your bank, that might be okay, right? Because you're saying that's why it's there. It's there to be spent down over multiple years, which is what our restricted budget does. But, when you have a structural deficit, it means that not only are you consistently overspending, you don't know how your operational costs cannot allow you to not overspend. You are just at a functional operational level that is higher than what your revenues are going to be. This is where we got to where we are. We are

089structurally operating We were structurally operationally overspending. An update on our enrollment The projections used for 2026-2027, we currently have a projected ADA of 1347 and 79 which is a 90% ADA rate. We are seeing a total enrollment number of 1,472 students which is a 5.09% decline from 2025-2026. 957 of those students are what we call those unduplicated pupil percentage, right? So our high need kids which is an unduplicated pupil percent of 61.92. That number is important because it creates thresholds for us. So that's where we can get the additional concentration grant. We're in a different tier for e-lock funding and it really helps us create support for those kids. So briefly we're just going to go over our general revenues. We will see that majority of our LCFF funding which I've explained before in the

090district comes from our property taxes, right? We are a basic aid school so our property taxes exceed what the state would give us based on an ADA base grant. However, inside of there we also have our EPA money which we just did a resolution for which has to be spent on certificated um certificated salaries and also what might and also what's in here is um um our base grant. So we get a flat about 1.3 million dollars in LCFF funding regardless of being basic aid. This is the money that we talk about that got taken for our principal advanced apportionment. So they're saying that's why we have a 30-year loan is because how small our principal apportionment is and now they have to take from to pay back our loan. We also have federal revenues,

091state revenues and local revenues. These are outlined specifically in your narrative which is the first few pages of that very long packet that I highly recommend reading explaining the variance between how we're ending this year and how we're going to next year. Keep in mind that those restricted monies truly are restricted, right? They are there because there is a purpose and we have to spend them the way that they are requesting us to be sent. Our expenditures. So, we have can see from our expenditures that we were able to decrease our planned expenditures from 25-26 to 26-27 by about $4 million. This was already with a lot of action we took in 25-26, [clears throat] right? So, when we're talking about our stable our state our fiscal stabilization plan, we were talking about we already

092had made a lot of impact in 25-26 that isn't about the difference between 25-26 and 26-27. Right? We did a lot of reductions during the year that allowed us to be here. So, we can see that we have a still about an increase in our restricted spending because we have grants and other funding sources that are being budgeted for in our restricted spending and an overall planned expenditure of about $35 million. Okay. Here's that word again, structural deficit. I'm excited to say that current projections are showing that we may have solved our structural deficit spending. But, I would really like to note that if we would not have gotten an $8.5 million one-time payment in 25-26, we would have finished 25-26 deficit spending $1.7 million. Okay? But, due to all the work that we did

093this year and a lot of hard decisions and a lot of collaboration and and you know, everything that we did this year, we were able to have 26-27 excess spending of $1.9 million. Which means we are uh expending less than we are receiving. The biggest point here is that we do believe that we have met about $8.5 million in reductions from our fiscal stabilization plan. However, there are some changes in our revenues that made the gap for our deficit spending to spread. So, while we made reductions, we also had revenue changes. So, that allowed the gap to grow, which is great. Um for example, our special education funding has increased. We went from a $6 million contribution to now um just over three or just under three. So, what that allowed us to do was

094mix take less money from our unrestricted to fund our restricted. So, this is excellent news and we're very excited about it. However, um does not mean that we need to now put back in operating costs, but it does allow us to know that it is possible for us to get into a balanced budget. So, a reminder of our our emergency apportionment and receivership. So, what cap The reason why we're here is because our cash flow showed that we were going to be insolvent, which means we did not have money to make payroll. Okay? So, that's why I said it's really important to know the difference between budget and cash. This has nothing to do with our budget. This has everything to do with the fact that we could not pay our bills. Due to this,

095we overspent, we borrowed money from ourselves, and we couldn't even pay it back to help during this time period. That is why we had to take very quick emergency support from the state to allow us to make payroll and pay our bills to continue operating. We had a total $20 million approved loan that we drew down initially $8.5 million. And so, at that time when we adopted this, we knew that we had a structural deficit of $9.5 million to right-size the district. Just a reminder that a $20 million at an interest rate of 6.411 actually was an additional interest amount of $25.9 million of interest on top of the $20 million loan. At this time, because we've only drawn down 8.5, that's $11 million in interest that needs to be paid back over 30 years

096in addition to the $8.5 million. We are planning to start paying back um the um annual amount this in 2026-2027. However, we're not required, they won't be taking it away from us 2027-2028, but we would like to start so that we can start slowing start bringing down that principal, which means we pay less interest. Just a quick reminder of why we're here. I'm not going to spend too much time on this because you guys have seen this multiple times is that we saw we were not only cash insolvent but also our fund balance was negative. And it was negative in multiple reporting periods. The actions that we took at unaudited actuals and then we did a one-time increase of our fund 17, which is depleted now. We have no savings. We got a one-time increase

097of $8.5 million and then we were projected at first interim to go negative again. But at second interim we took actions and we put in our fiscal stabilization plan that allowed us to go positive and then deficit spend again in 2027-2028. However, today with all of the work that we've done in our fiscal stabilization plan and the decreases and the way that the state revenue budgets are looking, we are now successfully have a balanced budget for at least the next three years. So, we are projected to receive or excess spend by about 1.9 next year and then about 1.3 and 1.8. What this means is that we are still deep, right? We're We're still kind of decreasing in We're spending more, right? So, that number's dropping, but we are excess spending. So, this is a

098very good sign. That means that we are taking all the right steps. $1 million in a $40 million budget is not a lot. Let me just remind that to everyone. It's not a lot, but it does let us know that we're in We've made great strides. So, one of the things I want to draw here is the ending fund balance can seem misleading. And I would like to really point out what truly is sitting in our ending fund balance. So, while we have an ending fund balance of $15 million, dollars, right off the bat, right, 4.8 of that is restricted. That is money that is completely restricted and not used for unrestricted purposes. The second part of that is our forest reserve funds, which is about 2.3 million dollars. That is one-time money that we

099have received and will be need to use for one-time expenditures. We are required to put 3% away for economic reserve, which you can see is highlighted in the blue box, which is about 1.5 million dollars across years out. I've added an assignment of fiscal stabilization. This is the money that the state has given us. This is one-time money that is not ours necessarily to play with. It was to help with our cash flow issues, right? Not our fund balance. So, we have outlined this as stabilization arrangements because it is a true line of saying, "This is money that is not us to play with. We have to pay this back." This is money that should be assigned to be reallocated back to the state. So, our total actual spending is that if you look at

100the assigned line is our unrestricted. So, currently, we have no unrestricted money, unassigned money to play with in 2016-2017. We do get a small 100,000 150 almost 150,000 dollars in the final year and about 1.8 million dollars in the next year. So, what this allows us to see is that the efforts we put in have worked. We are um have a balanced budget, but it does not mean that we need to put ongoing costs back into our budget. We need to consistently stay um vigilant and also remembering that the first interim is our true account of actually how the year will turn out. So, budget versus cash. Our advance apportionment was because of cash, right? So, really, it's it's hard cuz you see that in our ending fund balance, but it's because we over-borrowed from

101all of our other funds, couldn't pay it back, and then couldn't make payroll. So, that is why we had our advance apportionment. Our calculations show that if we did not take the 8.5 million dollars, next year, regardless of all the cuts that we made, we still would have been negative $3.5 million in November of 2026. And then again, negative with $1.5 million in March of 2007. So, while I say we have a balanced budget, we do need to keep in mind that our cash flow needs to be repopulated. We need to have excess spending for us to be able to have enough cash sitting in our bank to pay our bills on a consistent basis. So, we need to regrow our cash reserves. Why? By excessive by excess spending. Okay, so in our fund balance,

102just a quick reminder, we have $8.5 million that was one-time advance apportionment. We have $2.4 million of one-time forest reserve money from our secure rural schools. So, these fund balance should not be used for ongoing expenditures. We need to keep and maintain our and do not return to our structural deficit. So, one-time revenues equal one-time expenditures. All right, so the next time a adoption will occur is on odd actuals, where we come back and we say this is how the year actually ended, which allows us to readjust how the year began, and that'll be adopted in October. Thank you. >> Thank you. Good stuff. >> Nice work. >> More good more good news. Thank you for your eloquent presentation. And so, at this time I will open public I will open public comment. And so,

103is there are there any comments? Yes. >> Um Is there a possibility [laughter] that we could be out of receivership in less than 3 years? >> Um >> I mean, it's a very dangerous question for me to ask, but is there a possibility that we We're hearing some very positive things from staff and Ian. >> [clears throat] >> I love that question, by the way. So, I'll let you take it, Steph. >> Well, I think the most important part is that now that we're here, our budget is not the only thing keeping us in state receivership, right? We have all of the thick that comprehensive review items we have to pass, and not only implement, but also maintain. So, not only student achievement, physical facilities, all of those areas. >> Okay, so there's more going

104on than just finances. >> We're here not because just >> Okay. >> just we had a financial We're here because of a lot of decisions and a lot of different factors, which is why thick net does it this way, right? They say just because, let's say we just paid back a loan, it wouldn't it still would not necessarily mean we're out of state receivership. >> I think it would be helpful if the community recognized that. Okay, there's more going on here, guys, that has to be repaired than just the finances. >> I will say we have shared that before, and that information is on our website, but in September, I plan on doing a presentation that focuses specifically on the comprehensive report to explain that piece. >> Thank you. >> You're welcome. >> Great question.

105Any other public comment? >> I just had a quick statement. I just wanted to say thank you to Stephanie. It sounds like this is your last meeting. >> No, next week. You'll see me again. >> Oh, next week, but I just wanted to I just wanted to say thanks now, so thank you. For most A lot of people don't know, you helped us a lot on the sidelines and outside of this meeting and it's appreciated. Thank you for everything you've done for our community. >> Thank you. >> All right. Well, with that, we will close public input of the hearing, and then we will go somewhere else here. Let's see. Uh hearing? Okay. Uh hearing H, uh hearing. Uh this is an action item, and so, uh Stephanie. >> I closed my computer. Yes, uh

106E-rate. So, we um had originally awarded our uh our E-rate to AT&T, but it turns out when they got out there and started doing work, they can't do it. So, we have to go back to bid. We went back to our second option in our bid um, process. We're going to go with Tele- >> Mhm, communicate. >> Lumos Telecommunications. [clears throat] So, we recommend approving uh, the revised E-rate bid for our um, category two. >> All right, thank you. And so, I will approve the action to um, the E-rate um, item. And um, and I is the settlement agreement between CSEA 193 and PUSD. >> Yes, so um, I know that Mr. Dwayne here already read the joint statement, but there will be a transferring of one-time funds to the clearing account for cost savings,

107which is up to the unit and the district to determine those going back to uh, CSEA members. So, we will be making the transfer. I already have it ready to post after this is adopted um, for this MOU to be ratified. >> Right. Okay, I will approve the settlement agreement [cough] between [clears throat] CSEA 193 and PUSD. All right, staff items. Uh, PUSD personnel transactions. And this is an action item as well. Uh, Jennifer. >> Um, I'm seeking approval of the HR agenda as presented. >> And that was in our packet. And so, um, I will approve the PUSD personnel transactions. Uh, and number 15 is our consent um, agenda. And it consists of uh, regular meeting minutes from May 13th, special meeting minutes from May 11th, our PUSD check register for the month of

108May, and board um, and PUSD service contracts, as well as donations and surplus items. So, I will approve the consent agenda. And this time, we do have a meeting next week to follow up on this one, but other [clears throat] than that, I have no future agenda items. Thank you all for being here and listening to the good news. Good stuff. Thank you. Meeting adjourned.