The Fiscal Crisis and Management Assistance Team (FCMAT) presented the results of a fiscal health risk analysis for Coachella Valley Unified, concluding the district received a high risk rating (42.6 percent on FCMAT’s tool) and identifying several areas of elevated concern: deficit spending, declining enrollment, insufficient fund balance reserves and leadership instability.

Jennifer Narret, an FCMAT intervention specialist, summarized the FHRA methodology and findings. Narret said the review examined 38 yes/no indicators across a range of fiscal controls and practices, and that multiple “no” answers in areas such as budget monitoring, collective bargaining quantification and budget reserves drove the district’s high-risk rating. FCMAT noted the district had not completed the 2023–24 independent audit by the statutory timeline and that the county superintendent had designated the district a “lack of going concern,” triggering additional oversight and assignment of a fiscal adviser.

In response to FCMAT, the superintendent and assistant superintendent of human resources told the board they are implementing a fiscal stabilization plan and working through legally required reduction-in-force (RIF) procedures. Assistant Superintendent of Human Resources described the RIF and bumping process and said staff and union representatives are meeting with affected employees to attempt to place as many as possible in open positions.

Public commenters during the meeting pressed the board about classroom staffing changes. Several parents and staff members urged the district to preserve teacher aides and criticized the impact of combining grade levels in dual-language and early elementary classrooms. One teacher and parent said notices issued under the RIF process exceeded the number listed in a board resolution and asked for clarification (the commenter said the resolution referenced 48 positions while 10 teachers had received notices). Another public speaker said turnover of staff year-to-year at a particular elementary school had been extremely disruptive.

FCMAT’s presentation included numerical estimates drawn from the district’s first interim budget snapshot: roughly $12 million deficit in the current year, $19 million the following year and $29 million in year three (these figures were presented as the FHRA’s deficit projections at first interim; FCMAT emphasized the results were a point-in-time snapshot). FCMAT urged continued implementation of the district’s stabilization plan, timely completion of the 2023–24 audit, recruitment of a highly qualified chief business officer and improved board-level training on finance and governance.

Board members thanked FCMAT for the report and acknowledged the gravity of the district’s financial condition. Several trustees framed the rankings and recommendations as a call to seriously implement the stabilization plan and to improve communication and transparency with the public about budget decisions.

The FCMAT presentation and the public comments established fiscal stability and staffing as the central topics of the meeting, and trustees directed staff to continue work on the stabilization plan and related personnel matters.