Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the School Finance topic
No spam. Unsubscribe anytime.
Kern County Office of Education approves $500,000 loan to Semi Tropic School District to cover state recoupment shortfall
Summary
The Kern County Board approved a temporary loan of $500,000 to Semi Tropic School District, to be repaid by June 2027 with 3% interest, and assigned county oversight to a deputy superintendent to monitor expenditures.
The Kern County Board of Education approved a temporary loan of $500,000 to Semi Tropic School District to help the small district manage a budget shortfall after state recoupment related to lower-than-budgeted Average Daily Attendance.
Superintendent John Mindeborough told the board Semi Tropic’s budget shortfall resulted from enrollment declines and a lower-than-expected ADA; the district is roughly 300 students and had budgeted at a 97% attendance rate but has been in the low-90s. The loan would carry a 3% interest rate and be repayable by June 2027. The county office will appoint a designee (deputy superintendent Russell Santos referenced) who will review expenditures prior to disbursement to monitor fiscal stability.
Mindeborough said the office would prefer to help the district avoid state takeover and FCMAT intervention by offering this temporary support and oversight. Board members asked about attendance figures and monitoring; staff said they do not anticipate state takeover if the district follows the agreed monitoring and adjustment plan. The board approved the motion and the loan by voice vote.
Key financial terms: $500,000 loan, 3% interest, repayment due by June 2027; Semi Tropic will accept oversight conditions and periodic reporting to the county office.
