Board approves Fund 20 to prefund retiree health, hires new superintendent and tightens budget outlook

Santa Rosa City Schools' board on June 10 adopted several fiscal and personnel measures intended to stabilize district finances and create clearer long‑term liability planning.

Board members voted unanimously to establish a Fund 20 special revenue account to begin prefunding other post‑employment benefits (OPEB). Finance staff said Fund 20 allows the district to hold cash earmarked for retiree health while retaining operational control — a step toward the long‑term goal of an irrevocable trust. Trustees asked for annual reporting and pledged transparency about funding sources before large allocations are moved to the new account.

In personnel actions the board approved multiple management contracts and unanimously approved a three‑year employment agreement for incoming superintendent Dr. Monica Thomas, effective July 1, 2026, with an initial annual salary of $275,000 and standard health and retirement benefits. Dr. Thomas addressed the board briefly: “I am really looking forward to building on a lot of the hard work that has happened… I am ready to get to work, but not until July 1st.”

Finance staff presented a revised 2026–27 budget built on tighter revenue and expenditure assumptions than the district used at third interim. The district reported improved year‑end restricted balances after trimming projected 2025–26 spending, with the district’s path aimed at achieving the board’s reserve target within multiple years under the adopted multi‑year projection. Staff also briefed trustees about potential one‑time state discretionary funds and ongoing efforts to convert contracted special‑education roles to district positions where feasible.

What’s next: board directed staff to return with site‑level spend reports, charter financial reconciliations and detailed Fund 20 reporting; the final budget adoption is scheduled at the next board meeting.