The Burbank Unified School District on Jan. 15 received a formal explanation from the Los Angeles County Office of Education that it had designated the district as a “lack of going concern,” citing prolonged vacancies and breakdowns in business operations.

Octavio Castello, representing the county, told the school board the designation followed an unusually large number of vacancies in the district’s business office — including the chief business official — and noted ongoing reviews in payroll and facilities. The county has assigned a fiscal expert to be onsite at least weekly to work directly with district staff and advise the board, he said.

David Wilson, the county’s financial reviewer, told trustees the county’s review of the district’s first interim report raised three central concerns: declining enrollment that reduces state funding, ongoing deficit spending as COVID relief funds wane, and unsettled labor negotiations with potential fiscal impact. He urged the board to treat those as forward‑looking risks rather than evidence of immediate cash insolvency.

Superintendent Dr. [Macias], who introduced the visitors, said the district currently holds a positive interim certification but must heed the county’s warnings. Board members and the superintendent discussed the terms of the county fiscal expert’s engagement: the district will reimburse LACOE for 75% of certain short‑term technical assistance and the county will seek reimbursement for the remainder, the presenters said.

Trustees asked for clarity about the scope and duration of the county role. Octavio Castello said the fiscal expert has authority to participate in closed sessions, direct timelines, and in some circumstances to stay or rescind board actions. The county expert said his engagement is intended to build capacity and that the county will scale back involvement if internal controls and staffing stabilize.

The board did not take formal action to contest the designation at the meeting. Trustees said they welcomed the county’s assistance and pledged further work to address internal control weaknesses and staffing gaps. The board also directed staff to continue providing updates to the public and to return with a timeline for follow‑up work with the county office.