FCMAT Slams Past PUSD Leadership as Deficit Soars to $8.7 Million

PORTOLA — On Wednesday, the Joint Plumas County Office of Education (PCOE) and Plumas Unified School District (PUSD) Board of Trustees received a sobering presentation on the district’s financial crisis. In the past month, this crisis prompted the approval of 29 staff position cuts, but insufficient action before a March 15th deadline means those reductions cannot take effect until the 2026-2027 school year.

Mike Fine, CEO of the Fiscal Crisis & Management Assistance Team (FCMAT), opened by condemning past district leadership for a severe lack of integrity. He outlined guiding principles for moving forward, emphasizing prioritizing students and the community, ensuring legal compliance, and rebuilding public trust.

FCMAT’s initial analysis uncovered multiple red flags: late audits (including the 2023-2024 audit, originally due in May and still pending), mismanaged collective bargaining agreements, and rampant overspending. Fine challenged the perceived stability of the PCOE budget, long considered separate from PUSD’s, stating, “The dysfunction we’re seeing in the district, I don’t know how we separate that from the county, to be honest with you.” He noted that these issues predated current Chief Business Official Stephanie Shatto, citing evidence she had tried to raise concerns, only to be stifled by former Superintendent William Roderick, who “didn’t allow that flag to be hoisted.” Fine hinted at potential legal action against Roderick in the future.

FCMAT Chief Analyst Tami Montero then exposed the depth of PUSD’s financial troubles. The 2024-2025 budget originally projected a $1 million surplus, but PUSD’s unaudited figures revealed a $1.2 million deficit. FCMAT’s independent calculations painted a grimmer picture: a $7.4 million deficit, which, combined with a required $1.3 million reserve, results in an $8.7 million shortfall. Without intervention, FCMAT predicts this could swell to over $24 million by 2027.

Due to inadequate budget mitigation before the March 15th deadline, deficit spending will persist through the 2025-2026 school year, pushing PUSD toward near-certain state receivership. Requesting an emergency apportionment from the state would mean surrendering the superintendent and local governance, with the funds functioning as a loan, typically repaid over 20 years.

Fine described two receivership types. In Type 1, the state provides less than 200% of the district’s required reserve (roughly $2.5 million for PUSD), allowing the board to retain most authority. In Type 2, the state supplies more than 200%, stripping the board of power. FCMAT concluded, “Based on all available information known today, Plumas USD will require a Type 2 apportionment.”

The state only intervenes if PUSD formally requests receivership through a structured process. This begins with appointing an administrator to craft a fiscal stabilization plan, incorporating community feedback via public meetings. The state superintendent reviews the plan, followed by board-hosted hearings to gather further input and decide on seeking state aid.

If approved, the state would provide the emergency apportionment, and the county superintendent would assume the board’s legal rights, duties, and powers. This lifeline, while critical, sacrifices local control and imposes a long-term repayment burden.

Despite the grim financial outlook, the community left the meeting with a cautious sense of hope. Many attendees expressed relief at finally receiving clear, unvarnished information about the district’s challenges. One parent remarked, “I want to thank Mike and the team at FCMAT for delivering some really incredible transparency to us that a lot of us have been looking for, I think, for a while.”

Fine’s focus on ethical leadership also helped win over some. While the road ahead remains daunting, FCMAT’s presentation seemed to leave the community feeling that the district is heading in the right direction for the first time in a while.