FCMAT assesses East Sahyun High School District's fiscal health amid budget challenges

The East Side Union High School District (ESUHSD) is taking proactive steps to address its fiscal health, as highlighted in a recent board meeting on May 8, 2025. The district received a fiscal health risk analysis from the Fiscal Crisis and Management Assistance Team (FCMAT), revealing a significant improvement in its financial standing. The analysis indicated a low risk score of 21.3%, a notable decrease from 31.8% five years ago.

The FCMAT team, represented by Erin Lillybridge and Jeff Potter, conducted the analysis following the district's third consecutive qualified interim report, which raised concerns about its ability to meet financial obligations in the coming years. The report serves as an early warning system for potential fiscal distress, and this latest assessment reflects the district's ongoing efforts to stabilize its finances.

Key areas of concern identified in the report included deficit spending, insufficient fund balances, and the use of one-time funds for ongoing expenses. The district's reliance on temporary funding sources, such as ESSER funds, for salaries and benefits has raised alarms about future sustainability. However, the report also noted that the district has strong internal controls and processes in place, with zero risk identified in areas such as cash management and fraud prevention.

Board members expressed gratitude for the FCMAT's thorough review and acknowledged the district's commitment to improving its financial practices. They emphasized the importance of addressing the underlying issues contributing to the fiscal challenges, including declining enrollment and the need for expenditure reductions.

In addition to the fiscal health discussion, the board also held a public hearing regarding the renewal of the Escuela Popular Accelerated Family Learning Center's charter. The charter school, which serves a predominantly socioeconomically disadvantaged student population, is seeking a two-year renewal due to its low academic performance status. The board is expected to make a decision on the renewal in the coming weeks.

Overall, the ESUHSD is navigating a complex financial landscape while striving to maintain educational quality and support for its students. The district's proactive measures and commitment to transparency will be crucial as it works to ensure long-term fiscal stability and educational success.