A stinging state audit has identified “significant weaknesses” and inconsistent business operations as the primary causes of a multi-million dollar deficit in the Rincon Valley Union School District.
Per the Press Democrat, the report by state fiscal experts found the Santa Rosa district at “high risk” of insolvency due to failing to track employee pay accurately and granting raises that far outpaced state funding. Auditors also noted that the district repeatedly tapped its general fund instead of using restricted state and federal grants, while relying on overly optimistic enrollment projections.
To stabilize the budget, officials have already moved to close an elementary school and issue dozens of layoffs.
While the district’s outlook has recently been upgraded to “positive,” leadership says they are now implementing strict new oversight to prevent future financial collapse.
