Budget presentations and public hearings for 2025-2026 Plumas County Office of Education and Plumas Unified School District were the main agenda items of the boards’ regular meeting June 25. Both budgets were approved the next day, June 26, at a short special board meeting.
Budget overview
Interim Business Official Stephanie Shatto presented a powerpoint overview of the proposed budgets for both PUSD and PCOE. That took up the bulk of the meeting. Board Chair JoDee Johnson opened and closed the hearings for each budget after hearing no comments.
The proposed PUSD budget showed projected revenues of $34.4 million for the 2025-26 fiscal year, down from $39.8 million the prior year. Cash flow from recently received tax revenue is starting at $10.6 million as of June 30, said Shatto. These funds pay for salaries, books and supplies, services, and capital outlays.
| PUSD Revenues | 2024-25 | 2025-26 | Difference |
|---|---|---|---|
| LCFF | $25 m | $24.5 m | -2.1% |
| Federal | $3.9 m | $2.5 m | -36.6% |
| State | $6.6 m | $5.7 m | -13.6% |
| Local | $4 m | $1.5 m | -60.9% |
| Total | $39.7 m | $34.5 m | -13.5% |
The district has not met its required 4% reserve for the last two years. In 2024-25 it was negative $5,840,341. The projection for 2025-26 is expected to be negative $102,832, Shatto said.
Following their disclosures of projected revenue shortfalls of close to $24 million over the next three years, PUSD trustees approved asking for a state loan April 26. The action, taken with little fanfare, requested $20 million in an emergency California Assembly 121 trailer bill to the state’s 2025-2026 budget. Governor Gavin Newsom signed and approved June 27. The loan process was conducted by the California Department of Education and the Fiscal Crisis and Management Assistance Team. Plumas Unified is now officially under state receivership.
Shatto said that the district plans to delay using the loan money until November 2025, when PUSD will be have a shortfall of $746,736 according to the budget. Once the money is accessed the district will need to begin repaying with interest.
“We will only draw what we need, as we have the right to not take the full amount.” Shatto said.
The district is also required to repay an interfund loan of $5.3 million, which will require drawing on the loan before June 30, 2026, she said.
PCOE budget
While not as dire, PCOE officials estimated a 25.6% decrease in revenue for 2025-2026. The 2024-25 total revenue was $8.2 million. Revenue for 2025-26 is expected to be $6.1 million. The office of education budget is required to maintain a 4% reserve, which it will meet at $5.7 million after a transfer of one-time unrestricted funds. Cash flow is starting at $3.1 million July 1 and projected to end at $1.2 million June 30, 2026. Shatto projected no problematic cash flow issues.
Factors impacting falling revenues
The three primary revenue sources for PUSD are personal income tax, corporation tax and sales-and-use tax, Shatto said. All three are down $4.8 billion statewide this year according to the governor’s budget, she added.
Although PUSD is under the basic aid funding model, state proposition 98 still guarantees minimum funding based on attendance. This year the total fund is $114 billion for the state, with a cost of living adjustment of 2.3%.That means an additional $1.7 million for basic aid districts like PUSD, Shatto reported.
The upcoming proposed Fiscal Year 2026 federal budget from the Office of Management and Budget (OMB) has cut $163 billion from non-defense spending, which includes 12 billion in education spending. This bill has to be approved by Congress by September 30, 2025. For Plumas County, funding for K-12 level for low-income learners and special education will be maintained at the same level. Funding for adult education, migrant education and English language education are entirely eliminated in this bill. Plumas County offers these programs, which could be unfunded in the future if the bill passes without changes, said Shatto.
Board, staff honor retirees
Cake and certificates were on hand to honor retirees from the office of education and the school district board. Superintendent Andrea White presented a certificate to Betsy Webster, who has served as HR specialist for nine years. Board members congratulated Webster and thanked her.
Webster was the only retiree able to be present in person. Other retirees included:
- Jennifer Canty – registrar at Portola Jr/Sr High School
- Debra Guy – paraeducator at Quincy Jr/Sr High School
- Tania Hutchins- Spanish teacher at Portola Jr/Sr High School
- Patricia McCutcheon- executive assistant to PUSD superintendents
- Terri Rytter – cafeteria worker at Portola Jr/Sr High School
- Betsy Webster- HR specialist
The next regular school board meeting is scheduled for Wednesday, Aug. 13 at 4 p.m. the district office in Quincy. The public session is scheduled to start at 5:30. The July 16 regular meeting has been cancelled.