برچسب: financial

  • Which districts are on California’s latest financial danger lists — and why

    Which districts are on California’s latest financial danger lists — and why


    Credit: Alison Yin / EdSource

    The article was updated on March 3 to clarify the period of the school year covered by the two interim financial reports and to include the status of West Contra Costa Unified.

    Este artículo está disponible en Español. Léelo en español.

    Oakland, San Francisco and Hayward have joined four smaller districts on the five-alarm fire list of the state’s most financially stressed districts — those flirting with insolvency.

    They join 32 districts on a second, cautionary list where there’s smoke but no fiscal flames — yet. The second list, released last week, includes Sacramento Unified, several small rural districts where a small drop in enrollment can pose a financial threat, and two San Jose elementary districts, Alum Rock and Franklin-McKinley, which are closing multiple schools in the fall. Not on the list so far this year is West Contra Costa Unified, which is struggling to stay afloat and received a special “lack of going concern” designation the past three years.

    The 39 districts combined are more than last year and four times as many as in 2022-23, when state and federal revenues overflowed. Still, the updated total accounts for only about 4% of the state’s districts.

    Michael Fine, CEO of the Fiscal Crisis and Management Assistance Team, a state agency whose job is to monitor districts’ finances to prevent insolvency, blamed the financial pressures on declining enrollments and the termination of record federal Covid aid for schools. 

    Both factors are forcing districts to make difficult choices that will affect students. Some districts are offering retirement buyouts and/or laying off teachers, counselors and other staff because staff salaries constitute about 80% of overall costs. Many districts on the list also bear the cost of vacillation — a failure to act sooner to cut costs before deficits mount, Fine said.    

    “From my standpoint as an advocate of best practice, there should be nobody on the list because the two predominant factors are predictable,” Fine said. “Why weren’t they dealing with these a year ago, two years ago, and three years ago?”

    Those questions are appropriate for Oakland Unified. Since pre-pandemic 2018-19, its enrollment has fallen 7% — by 2,608 students to 33,916. The district received a total of $280 million in emergency Covid relief in 2021 and 2022, but that expired on Sept. 30, 2024, as that aid did for all districts.

    With many of its elementary schools housing around 300 students, Oakland Superintendent Kyla Johnson-Tramell proposed plans to close small schools, potentially saving millions of dollars, and, in December, to merge 10 elementary schools into five. The school board rejected the plans. In 2023, following a seven-day strike, the district, aiming to reduce the exodus of teachers to better-paying area districts in a high-cost region, gave teachers a 10% raise and a $5,000 one-time bonus. All of those factors have led to a mammoth $95 million deficit out of a $960 million budget.

    “It didn’t feel like we had a deficit growing because we had all the one-time money,” Johnson-Trammell told The Oaklandside last week. “We have to continue to give raises. It’s not a crisis. We made investments, and we have to figure out a way to pay for it.”

    California’s early warning system

    Each year, between passing their annual budgets, all school districts must file two reports to FCMAT that summarize their current financial health and project ahead. Oakland and the other six most-distressed districts filed a “negative” status in their first interim report. This means they likely won’t be able to meet financial obligations, including payroll, in the current or next fiscal year. The 32 other districts filed a “qualified” status, meaning they’re on track to run out of money in the next two fiscal years.

    Districts self-certify their reports. They filed their first interim report on Dec. 15, covering the four months, through Oct. 31, since the July 1 fiscal year began. The second interim report, filed March 15, covers the year through Jan. 31, enabling districts to factor in revenue estimates from the governor’s initial budget, including the projected cost-of-living increase they rely on. March 15 is also the deadline for notifying employees if they could be laid off — key evidence of how districts are dealing with a potential revenue problem.

    How are negative-status districts responding?

    Oakland had certified as “qualified” for 14 straight reports before filing a negative status in the latest report. 

    “Oakland is not a surprise; it’s been struggling,” Fine said. “It hasn’t taken the necessary corrective action that it has needed. The district adopts lots of plans and lots of documents, but then carries few of those out.”

    However, last week, Oakland’s school board passed a plan to eliminate 97 positions for teachers, administrators and noncertificated jobs, including tutors, case managers and attendance monitors. More ideas are on the table.

    Across the bay, San Francisco Unified has been in turmoil, reflected in the recall of two board members and the resignation of its last superintendent. It initially filed a negative financial status in 2023-24.  

    Last month, to resolve a $113 million deficit, equal to about 10% of the district’s budget, San Francisco’s board voted to approve preliminary layoff notices for 395 teachers, social workers and counselors, 164 teachers aides, and 278 administrators and other staff. Retirements and resignations will likely result in fewer layoffs.

    Hayward wasn’t on the state’s radar for financial troubles, Fine said, but a new superintendent and chief business officer “inherited some issues and did the right thing” by self-certifying negative. “They would be an example of a district that will most likely turn the corner,” he said.

    Most of the seven districts will work their way off the negative list, he said. Two that probably won’t are Plumas Unified and Weed Union Elementary, Fine said.

    “We’re very, very concerned about Plumas,” Fine said.  “They have already borrowed to a point they can’t pay back, and there has been some finessing of the data to make it look better than it is.” The only district in Plumas County, it has four schools, about 1,700 students and a $42 million budget.

    Weed Union is an unusual case. The one-school district with a $7.5 million budget is the first in a decade to operate without an approved budget, having been rejected by the Siskiyou County Office of Education and the California Department of Education. Its problem, said Fine, is that it is overextended on a facility upgrade, and the burden of paying for it will overwhelm the district’s operating budget.

    If insolvent, what then?

    A district that runs out of money will get a state loan but lose its autonomy, and a state-appointed trustee will oversee the district’s operations. The district will honor existing contracts, but the trustee will have veto power over new contracts and other decisions that the school board makes. The district will bear the cost of the state’s oversight and legal fees and interest on a 20-year loan. 

    “It gets worse before it gets better,” Fine said. “Receivership takes away local control.” In the 34 years since the Legislature created FCMAT and the oversight process, only eight districts have needed a bailout loan. The most recent is Inglewood Unified, which received $29 million in 2012. Oakland would be the first two-timer. It’s still 18 months away from paying off the $100 million it received in 2003 and 2006.

    Is this the most precarious year for districts?

    Far from it. In the second interim report in 2011-12, 176 districts filed a “qualified” status and a dozen were “negative” – together, about one in five districts. Amid plummeting state revenues in the wake of the Great Recession, the state cut $6 billion and delayed payments to K-12 districts. The average district had not set aside nearly enough money in reserve for a crisis. This year, the average district has set aside 22% of its operating budget in reserve, more than three times as much.

    The difference is “night and day,” said Fine. “During the Great Recession, the state made cuts to district revenues. Today, the issues are all local.”





    Source link

  • California tribal college looks to become independent, but financial questions loom

    California tribal college looks to become independent, but financial questions loom


    A California Indian Nations College flag inside the college’s classroom at College of the Desert’s Palm Springs campus.

    Michael Burke/EdSource

    After operating for the last six years as an affiliate of a nearby community college, California Indian Nations College (CINC) appears likely to become the state’s only standalone, fully accredited tribal college. It’s something education experts say would be a boon for Native American students who now start and complete college at lower rates than other ethnic groups.

    But first, money has to be found to ensure the college can survive, let alone expand and build its own campus.

    A two-year and mostly online institution based in the Coachella Valley in Riverside County, the college achieved a big step forward toward its goals recently. It got preliminary approval for accreditation, allowing it to independently offer classes and transferable credits and distribute financial aid. The college expects to have full accreditation within the next year. 

    The college opened its doors in fall 2018 as an extension of UC Riverside for one semester. Since 2019, its degrees have been awarded via a partnership with College of the Desert. Students dually enroll at both campuses, though starting next semester students will be able to enroll solely at CINC and still get an accredited degree.

    College of the Desert also provides classroom space for the tribal college at its temporary Palm Springs campus, made up of a set of trailers. Inside the tribal college’s classroom trailer, visitors can find Native crafts such as dream catchers, fliers with information about transferring to four-year colleges and even a makeshift basic needs center — a filing cabinet with dry food. 

    College of the Desert’s temporary Palm Springs campus, where California Indian Nations College has a classroom.
    Michael Burke/EdSource

    CINC enrolls about 150 students and is planning for many more, but it faces an uncertain future even if it achieves full accreditation. It is running low on money and is asking the state for a $60 million infusion in this year’s budget: $50 million to build its own campus and another $10 million in annual funding for operational costs. 

    Officials say the money is necessary for the college to grow long term and offer a culturally relevant education to Native students who often distrust the U.S. education system. That distrust dates back to the 19th century, when the government began to forcibly send Native children to boarding schools intended to assimilate them, a practice that didn’t end until the late 1960s. 

    “There’s so many of us here who feel a void and think, ‘Who are we?’ So having an institution that’s empowering and teaching us the truth about who we are is really important,” said Mayra Grajeda Nelson, who graduated last year from CINC with an associate degree in sociology and another in social and behavioral sciences. Originally from Banning, Grajeda Nelson now works as a health educator for the Indian Health Council in northern San Diego County.

    The college is not a typical community college governed by the state’s board of governors; instead, even with state funding, it would remain chartered by the Twenty-Nine Palms Band of Mission Indians, a federally recognized tribe in Southern California.

    It would be the only accredited tribal college in the state but not the first. D-Q University operated in Davis from the early 1970s until closing in 2005 after losing accreditation and eligibility for $1 million in federal funding. Across the country, there are more than 30 accredited tribal colleges and universities, spread out across the Southwest, Midwest and other regions. The first tribally controlled college, Diné College in Arizona, was established in 1968 and still operates.

    California has the largest Native population of any state, with a concentration of tribes in the desert regions of Riverside County. Yet, American Indian or Alaska Native individuals have the lowest college-going rate of any racial or ethnic group in the state, according to a report published in December by the California Indian Culture and Sovereignty Center at Cal State San Marcos. 

    “But if you look at American Indian students who go to tribal colleges or universities, they’re four times more likely to earn their bachelor’s degree,” said Shawn Ragan, CINC’s chief operations officer. 

    In a recent report following a campus visit, the accrediting commission praised the tribal college for providing “culturally sensitive, academically rigorous” courses and degrees that incorporate Native American culture and for “fostering an environment where both Indigenous and non-Native students can thrive.” The report found that CINC has “solid financial planning in place for the short-range” and noted that the college is still figuring out its long-term funding planning. Otherwise, the commission found only minor problems that college leaders say will be easy to address, such as requiring the college’s board of trustees to undergo a self-evaluation. 

    California lawmakers, though, have not committed to providing funding this year for CINC, and no funding was included in Gov. Gavin Newsom’s January budget proposal. 

    Assemblymember David Alvarez, chair of the state Assembly’s budget subcommittee on education, said in an interview that he’s supportive of the tribal college and that there is “room for conversation” about funding. But he acknowledged that the timing is not ideal: California’s public universities are facing budget cuts, and it could be difficult to find money for new spending. 

    To date, the state has given CINC $5 million — a one-time funding allocation in 2022 to help the college apply for accreditation.

    Now that the Accrediting Commission for Community and Junior Colleges has awarded the college candidacy status, CINC can also apply for federal funding, but that too is an uncertainty under the Trump administration. President Donald Trump recently rescinded a White House initiative aimed at strengthening tribal colleges. His proposed federal funding freeze, currently blocked by the courts, would also prevent the colleges from getting federal grants and contracts. The Trump administration’s hostility to any programs promoting racial diversity could also have a chilling effect and make it harder for those colleges to secure funding. 

    CINC previously received $9 million in seed money from the Twenty-Nine Palms Band of Mission Indians. Most of that has been spent, and the college is now surviving off its reserves, which should last for at least the next year. 

    Open to both Native and non-Native students, the college mostly uses part-time faculty and offers associate degrees in sociology and liberal arts. Students in the liberal arts program can pick one of three concentrations: arts and humanities, business and technology or social and behavioral sciences.

    Students at California Indian Nations College’s 2024 graduation ceremony
    Courtesy of California Indian Nations College

    In addition to courses specific to their major, students are required to take general education classes as well as six units for a Native American breadth requirement. For that requirement, they choose between courses such as Native American literature, Native performing arts and Native languages. 

    Most classes are online, but the college often holds in-person events, including cultural workshops like basket weaving. There are also talking circles, an Indigenous practice similar to group therapy. Many of the events are led by Kim Marcus, the college’s Elder in Residence and an enrolled Tribal Elder with the Santa Rosa Band of Cahuilla Indians.

    Grajeda Nelson, the recent graduate, enrolled at CINC in 2023, more than a decade after first enrolling in college at Crafton Hills College in Yucaipa. She also attended Mount San Jacinto College, but didn’t receive a degree from either institution. 

    With some credits carrying over from her previous stops, she was able to finish two associate degrees within one year at CINC. During that time, she found the talking circles especially helpful to share her past challenges and get support from people with similar experiences.

    “That’s how the Native community is. There’s that closeness and support because we’re all kind of dealing with very similar challenges, especially with intergenerational trauma, substance usage, depression, poverty,” she said. “So having that space gives us time to process those emotions so we don’t have to walk away and feel that grief.” 

    Kristina Glass, whose family is part of the Cherokee Nation, did make it to and through a non-tribal college, having graduated from Cal State Long Beach in 2014 with a bachelor’s degree in psychology. 

    In debt and laid off from her job as a graphic designer, Glass last year decided to return to college. She’s pursuing an associate degree in Spanish language from College of the Desert and has been taking general education classes at CINC, including Native American literature. 

    As a student at Cal State Long Beach, Glass said she felt isolated because she didn’t meet any other Native students. Her experience at CINC has been much better. Just hearing Native American blessings, performed before events on campus, regularly brings her to tears. “It’s special, because you feel that connection to this land and these people,” she said. 

    Faculty try to incorporate elements of Native culture into the curriculum, even in courses that aren’t part of the Native breadth requirement. Roseanne Rosenthal, an anthropology professor, instructs students to learn about the history of their tribes from elders in their communities.

    “Having students going back and bringing that knowledge into the classroom, I think is great,” said Rosenthal, the college’s only full-time faculty member.  

    If the college can secure more funding, officials plan to add additional full-time faculty and new associate degrees including in business, engineering and food sovereignty.

    At the top of their wish list, though, is their own campus, which would take a few years to build. In the meantime, the college will continue to use the College of the Desert facility and UC Riverside’s Palm Desert campus, where CINC’s administration is housed. 

    Ragan said the college is still looking at potential sites for a permanent campus but expects to stay in Riverside County. He said having a campus would “enable students to come together and build community” by having more in-person events and classes and would allow the college to offer more vocational training.

    He added that the college is looking into additional funding possibilities, such as from other tribes, but said the state “is the best option right now.” 

    “What we’re asking for, it’s not a large amount. So ideally we’ll have some wiggle room and can get us added to the budget,” he said. “California has a tremendous need for tribal colleges. What we’re doing is historic and is going to change lives.”





    Source link

  • California colleges report no financial aid delays so far but fear federal upheaval

    California colleges report no financial aid delays so far but fear federal upheaval


    A 2025-26 FAFSA form.

    Credit: Andrew Reed / EdSource

    Financial aid staff at California’s colleges and universities have a cautiously optimistic message to share this spring — but are weighing contingencies in case massive restructuring and cuts at the U.S. Department of Education upend federal aid this summer and fall. 

    First, the good news. Federal aid for this spring term — like Pell Grants and work-study aid — has already been disbursed. Universities are processing files from the Free Application for Federal Student Aid, or FAFSA, for next fall on schedule. And in turn, colleges are sending prospective students preview offers of grants and other support they are eligible to receive if they enroll.

    But trepidation is building about what’s ahead for the hundreds of thousands of California college students receiving Pell Grants and federal loans. Layoffs that have roughly halved the U.S. Department of Education’s workforce “raise serious concerns about the near future, particularly potential delays to the upcoming FAFSA cycle and the federal government’s capacity to accurately distribute billions in student aid,” said Toni DeBoni, the associate vice president for enrollment management at CSU Channel Islands.

    Those worries come following President Donald Trump’s executive order directing Secretary of Education Linda McMahon to “take all lawful steps” to close the Department of Education. The White House wants to potentially shift the $1.6 trillion student loan portfolio to the U.S. Small Business Administration (SBA) and even transfer Pell Grants to another department.

    Trump administration officials have pledged not to interrupt services as they wind down the Education Department, which would require congressional action to be formally eliminated. Trump says student loan servicing has “been a mess” and that it would improve under the SBA. But critics charge that dismantling Education parceling out its workload could hamper the distribution of aid to millions of students and harm student borrowers.

    If those dire predictions prove true, the University of California (UC) and California State University (CSU) systems would face disruption to a major funding source. Cal State received almost $2.3 billion and UC about $1.7 billion in federal student aid in the 2022-23 school year, much of it for Pell Grants and student loans. Any delay would also be felt at California community colleges, where 24% of students received a Pell Grant in the 2023-24 school year.

    Both university systems are reassuring prospective students and saying they think federal student aid will continue uninterrupted, despite fears of possible cutbacks.

    A UC spokesperson said in a statement that the system of 10 campuses does “not expect recent news about the U.S. Department of Education to impact our ability to award and disburse financial aid to our students” and that federal grants and loans remain available “with no anticipated changes to availability in the foreseeable future.”

    A CSU spokesperson said the 23-campus university system does not anticipate any delay or stop to federal student aid in the 2025-26 school year, adding that “the number of [student and parent] concerns regarding recent federal actions haven’t been widespread.” Systemwide, almost 42% of CSU students receive a Pell Grant, a form of aid for students from low-income families that can provide up to $7,395 for the 2025-26 award year. 

    However, Cal State officials addressed the uncertainty about federal changes more directly at the March meeting of the system’s board of trustees.

    “We know that there have been some (departures) of employees in the Department of Education,” Chancellor Mildred García said. “We are concerned about the process it will take to really go through the FAFSA, and that’s the most that we have heard.”

    “We don’t know who’s going to be processing our FAFSA applications, who is the people in charge, etc.,” she added.

    Nathan Evans, the CSU system’s chief academic officer, said that students and families seeking help with their federal student aid “are having difficulty in connecting and engaging with folks that support the FAFSA process at the federal level. So our teams at our universities are working as hard as possible, but sometimes those answers can only come from the folks that are helping support that directly.”

    Meanwhile, the California Student Aid Commission reported in late February that the number of high school seniors completing financial aid applications was down 25% compared with the same point two years ago, before the rocky rollout of the 2024-25 FAFSA. State officials attributed the decline in part to a nearly two-month delay in the opening last fall of the current federal financial aid cycle.

    Aiming to boost applications, the California Student Aid Commission extended the state’s priority deadline — the date by which students planning to attend four-year schools must apply for most state aid programs — until April 2. The latest commission data shows that as of April 1, about 55% of current high school seniors have completed a FAFSA or the California Dream Act Application, a form of state financial aid aimed at undocumented students. An aid commission spokesperson said the commission plans to soon compare applications through early April to previous years.

    So far, there are promising signs that aid applications are increasing. An analysis by the National College Attainment Network found that FAFSA submissions in California have risen 11% year-over-year. Financial aid staff at Cal Poly Pomona, CSU Bakersfield and UC Riverside said they have observed more FAFSA applications than in the previous year or two, suggesting a return to normal after complications with the new FAFSA.  

    But financial aid officials said Trump’s call to close the Department of Education has led some families to mistakenly conclude that federal student aid is no longer available, discouraging them from applying. Officials are working to counter that misinformation.

    Chad Morris, the director of financial aid and scholarships at CSU Bakersfield, has a simple message to families questioning whether federal aid will be reduced or delayed: Apply anyway. “Take the steps as if there won’t be any disruption,” he said. 

    Cal Poly Pomona is also trying to keep students focused on the here-and-now basics: The Department of Education is still operational; Pell Grants and federal student loans are protected by the law and are still available; students should apply as usual.

    “We don’t know what’s going to happen,” said Jessica Wagoner, the university’s senior associate vice president for enrollment management and services, “but what we can do is tell (students) what’s going on now.”

    Those soothing messages could be muddied by the loaded choice facing students who are eligible for federal aid as U.S. citizens or permanent residents, but who have spouses or parents who are undocumented immigrants. Students from such mixed-status families may have particular apprehension about whether data submitted through the FAFSA could be used for immigration enforcement purposes, though federal law prevents the U.S. Department of Education from using information students enter into the FAFSA for a purpose other than determining a student’s aid.

    University of California students have sued the Education Department, accusing it of turning over sensitive federal student aid data to members of Elon Musk’s Department of Government Efficiency, or DOGE. A federal judge in March blocked DOGE from accessing private data housed at the Education Department. 

    “When students are completing the FAFSA, they need to really look at the risk factor that they may take, especially mixed-status families,” said Jose Aguilar, the executive director of UC Riverside’s financial aid office. “But at the end of the day, if they are eligible for these federal grants and programs, I would encourage them to apply through the FAFSA.”

    UC Riverside has already started sending new students preliminary aid award letters. Its students receive about $79 million in Pell Grants, another $3 million from federal work study and Supplemental Educational Opportunity Grant combined, and an additional $70 million in federal direct subsidized student loans, Aguilar said.

    Given the swings in federal education policy this spring, some university officials are starting to think about how they might respond if federal aid is delayed. DeBoni of CSU Channel Islands said her campus is “actively preparing contingency measures.” The university could extend internal deadlines for students to accept admissions offers or apply for scholarships, she said, and institutional scholarships could help to fund students’ expenses.

    At Cal Poly Pomona, Wagoner said the university could give students waiting for aid similar leeway. But the university, where almost 44% of students receive a Pell Grant, would face “a very big challenge” in the unlikely event of an abrupt drop in Pell dollars, Wagoner added. “I don’t know if we — if any institution — could supplement that loss.”





    Source link