Board adopts 2nd interim budget, approves Rancho Sonata prequalification and lease‑leaseback steps; approves closure memorandum for Unity charter

The Orange County Board of Education approved several formal actions March 5 including adoption of the department’s second interim financial report, authorization to prequalify contractors and to use a lease‑leaseback delivery method for Rancho Sonata site work, and a memorandum of understanding to oversee the closure of Unity Charter School.

Lede: By unanimous vote the Board of Education accepted the OCDE second interim financial report, approved procurement steps for Rancho Sonata, and authorized a closure MOU for Unity, while staff stressed continuity for students and careful oversight of construction contracts.

Nut graf: The second interim report incorporates the governor’s January budget proposal, updates OCDE revenue and expenditure forecasts through Jan. 31 and shows an operating deficit driven largely by planned one‑time capital investments. The board also moved forward on Rancho Sonata design and procurement to modernize OCDE’s outdoor education facilities, and accepted a voluntary closure agreement with Unity to ensure students finish the school year with minimal disruption.

Key votes and decisions: - Second interim finance report: The board voted to adopt the report and a ‘‘positive’’ certification of OCDE’s ability to meet its obligations; the motion passed 5–0. Staff said the current‑year deficit is largely driven by one‑time capital projects (Rancho Sonata modernization, conference center upgrades and site furniture) and that ongoing revenues and expenditures remain aligned. - Rancho Sonata procurement: The board approved Resolution 525 to authorize prequalification of contractors for the Rancho Sonata project and Resolution 625 to authorize use of the lease‑leaseback construction delivery method and associated RFP/contract templates; both resolutions passed 5–0. Staff noted lease‑leaseback will allow earlier contractor engagement and “best value” evaluation rather than lowest‑bid awarding; DSA review and standard DSA timelines remain part of the schedule. - Unity Charter School closure: Unity’s governing board chose to close and entered a memorandum of understanding with OCDE to govern the closure process, protect students and manage records and assets; the board approved the MOU 5–0. OCDE staff said closure steps will preserve continuity of service through June 30 and provide transition assistance to families.

Budget context and next steps: OCDE staff reviewed the governor’s January proposal, which raises the state’s Prop. 98 guarantee but includes a proposed maneuver that leaves about $1.6 billion of the current year guarantee unappropriated pending revenue confirmation. OCDE staff said revenue uncertainty and fluctuating attendance drive conservative budgeting; staff will present the May revise assumptions in June when the preliminary budget is returned for final adoption.

Ending: Trustees praised staff for the budget presentation and asked for continued updates on Rancho Sonata design, facility utilities (well, septic, fire hydrants) and financing. OCDE staff said the DSA review and procurement schedule aim for construction to begin early 2026 with completion in 2027, subject to DSA and funding timelines.