Kern County Board grants 5‑year renewal to Realms Charter School, contingent on fiscal MOU

The Kern County Board of Education on a vote approved a five‑year renewal of Realms Charter School, contingent on the charter and the county executing a memorandum of understanding that requires delivery of a fiscal stabilization plan and maintenance of a minimum general fund reserve.

KCSOS staff presented findings that Realms met the “middle” performance tier on the 2024 California School Dashboard but that the charter’s renewal petition omitted clear reclassification procedures for English learners and certain SELPA assurances for students with disabilities. Fiscal reviewers found that the petition’s budget assumed inflated enrollment figures (previous projections of roughly 420–439 students) while actual enrollment ranged from about 159 in 2019 to 237 as of February 2025. Staff said the petition’s multi‑year projections showed revenue shortfalls that could produce a projected structural deficit approaching $700,000 under the petition’s assumptions.

Kimberly Graham, KCSOS Chief Leadership Support Officer, and Jonathan (John) Medina, fiscal services, said Realms’ board had moved quickly after receiving the staff findings to adopt a fiscal stabilization plan and revise its budget. KCSOS staff recommended a five‑year renewal (July 1, 2025–June 30, 2030) but asked the Board to make the approval contingent on a mutually agreed MOU that addresses governance and fiscal concerns.

Key MOU terms presented to trustees include a requirement that Realms project and maintain a minimum general fund reserve equal to 5% (the office said 5% is the state’s expectation for local educational agencies of Realms’ size). The staff report recommended that, if the charter does not project or maintain that minimum reserve in fiscal years through 2027, the charter agree to voluntarily close by June 30, 2028; KCSOS indicated the clause was a tool to protect the county and support orderly resolution if fiscal stabilization fails.

Realms administrators told the board they had already approved a fiscal stabilization plan that cut seven positions (including teachers, clerical and paraprofessional roles) and other line‑item reductions to bring the budget into balance on the revised enrollment assumptions. Elsa Hennings, Realms board chair, said the board and administration had taken “difficult” actions and believed the new budget would be sustainable if enrollment holds at current levels. Realms officials said they remain actively recruiting and would adjust if enrollment increases.

Board members asked for clarity on monitoring and timelines. KCSOS staff said the MOU would be negotiated and signed by both parties and that the board would receive annual fiscal updates and have authority to initiate revocation procedures if required. Trustees voted to adopt the staff report and approve the five‑year renewal contingent on the execution of the MOU.

Motion language read at the meeting moved that the Kern County Board accept the staff report and approve the Realms renewal for a five‑year term (07/01/2025–06/30/2030) contingent on a mutually agreed MOU. The motion carried after a second and a roll call-style verbal vote; the board president declared the petition approved.

The board directed staff to finalize the MOU and return reports as required under the county’s authorizing responsibilities.