Kern County board issues notice of violation to Central Academy of Arts and Technology over fiscal concerns

Kern County Board of Education trustees voted to issue a formal notice of violation to Central Academy of Arts and Technology (CAT), saying county staff found material fiscal mismanagement and inconsistent financial reporting that place the charter at risk of insolvency.

The notice, authorized under Education Code 47607, requires CAT to submit a remediation plan within 15 days; the board said it will evaluate that response at the May meeting and could begin revocation proceedings in June if the issues are not cured.

Kern County Superintendent of Schools staff told trustees their review of CAT's second interim financial reports showed contradictions between documents and the school's ledger, rapidly increasing deficit projections and reliance on unrealistic attendance (ADA) assumptions. Assistant Superintendent of Fiscal Support Jonathan Medina told the board, "KCSOS has determined that the charter has engaged in fiscal mismanagement," and walked trustees through the budget changes that triggered the notice.

Why it matters: County staff said CAT's second interim projected a negative ending fund balance for 2024-25 and a multiyear projection that depended on a dramatic, near-immediate increase in ADA. If the charter cannot demonstrate short-term cash and longer-term solvency, the county could be liable for unpaid obligations; staff said issuing the notice is a required oversight step that preserves options for students and employees.

What the county reported - Staff presented the budget progression from the charter petition through first and second interim reports. According to county materials, CAT's initial petition projected roughly $5.7 million in revenues for year one; first interim figures reflected a drop to about $4.5 million and a modest deficit; by second interim, county staff said revenues and expenditures diverged further and the reported deficit had grown to roughly $700,000, producing a projected negative ending fund balance for 2024-25. County staff also reported discrepancies between the charter's second interim figures and the general ledger the back-office provider supplied. - County staff flagged the charter's ADA assumptions as the primary driver: CAT's petition had assumed roughly 370 ADA, first interim used about 199 ADA, and the certified P-1 (actual through December) ADA was 168. County staff said CAT's second interim then modeled ADA that would double in the next year, which staff described as unlikely to materialize. - Staff also reported governance and compliance concerns, including Brown Act posting problems and missing board minutes, and noted that some fiscal assumptions in CAT's submitted cash-flow schedules appeared to rely on an as-yet-unexecuted $2 million loan.

CAT response and public comment CAT leadership and many parents and staff attended the meeting. Joanna Kendrick, identified in the meeting as CAT's executive director/CEO, told trustees the charter was actively pursuing private financing and said a pending loan was part of a plan to bridge the year and maintain operations. She warned trustees that the notice could jeopardize underwriting: "This action tonight ... will stop our ability to get our to execute our loan," she said.

More than two dozen parents, students and staff spoke during public comment, describing academic and social gains at CAT and asking the board to allow the charter to remedy issues. Parent Natasha Mitchell told trustees about her son's turnaround at CAT: "He found peers who celebrate who he is, teachers who see his potential, and staff who create a safe space and welcoming space for him to grow." Several speakers urged collaboration and more time so the charter could present its remedy to county staff.

Board action and next steps Trustees voted in roll call to approve KCSOS's issuance of a formal notice of violation. The vote as recorded in the meeting minutes was unanimous among trustees present (Julie Beechner, Joe Marcano, Mary Little, Jose Gonzales, Laurie Eskew, James Robinson and Laurie Cisneros).

Per the timeline described by county staff: - CAT has 15 calendar days after receiving the notice to submit a written remedy and supporting evidence to KCSOS. The county asked for specifics on short-term cash flow and longer-term solvency measures (e.g., executed loan documents, revised budgets, enrollment evidence). - KCSOS staff will circulate the charter's remedy and staff analysis to the county board ahead of the May meeting; trustees said they will review the remedy and either discontinue the revocation process if the remedy is adequate or move to a notice of intent to revoke and schedule a public hearing (anticipated in June) if concerns remain.

Clarifying details and figures cited at the meeting - P-1 (actual) ADA through December reported by CAT: 168. (certified by CALPADS) - First interim ADA used for the current year: ~199.41. - Charter petition ADA projection (year 1): ~370.5. - County staff reported the charter's reported deficit grew from roughly $125,000 at first interim to approximately $700,000 at second interim; county materials presented a negative ending fund balance for 2024-25 and an uncertain carryover into 2025-26 unless ADA and revenues increase sharply or an infusion of funds occurs. - County staff said the charter's cash-flow schedule included a projected $2,000,000 inflow in April; staff had not received executed loan documents at the time of the presentation and treated that number as an assumption.

What the board said Board members emphasized the difficulty of the decision and the need to protect students and staff while preserving the charter's opportunity to present a remedy. Trustees directed KCSOS staff to provide the board with written updates about meetings between the county office and CAT during the 15-day remedy window.

Opposed or alternate views CAT leadership said it had produced a fiscal sustainability plan and was working with a back-office provider and potential lenders; they asked for time and collaboration to finalize loan underwriting and submit executed agreements. Several parents asked the board to postpone action and work with the charter to avoid disrupting students.

Ending The county's notice of violation starts a statutory oversight timeline; trustees and district staff told the meeting they prefer to see the charter succeed but said issuing the notice was required to document the county's concerns and preserve the board's options to protect students and public funds.