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Fiscal Updates » Fiscal Updates

Fiscal Updates

Understanding Our Fiscal Recovery

Plumas Unified School District is currently working closely with the Fiscal Crisis and Management Assistance Team (FCMAT) as we address serious financial challenges. As part of this process, the district has entered into a state receivership in order to stabilize our financial operations and ensure long-term sustainability.

To keep our community informed and involved, we’ve created this Fiscal Recovery Resource Page. 

Please visit the FCMAT PUSD page for the most current information and documents.

11/21/25 PUSD Fiscal Recovery: What Families and Community Members Need to Know

Plumas Unified School District is entering a critical period of fiscal recovery. We want to share an overview of what led to our financial challenges and how we are working to restore long-term stability.

Why PUSD Is Facing Financial Challenges

Over the past several years, the district’s ongoing expenses have grown faster than its ongoing revenue. This created a structural deficit, meaning PUSD has been spending more each year than it receives. In 2024–25, the district used a one-time reserve transfer to avoid an immediate crisis, but the underlying deficit continued to grow.

Emergency Support From the State

On September 2, 2025, PUSD received an $8.5 million emergency loan from the State of California. This short-term assistance prevented the district from running out of cash.

However, the emergency loan does not solve the long-term budget problem. Beginning in November 2027, PUSD must begin repaying the loan with annual payments of about $600,950 for 30 years, which will reduce the district’s future revenue.

What Must Happen Now

To protect the financial health of the district, PUSD must reduce ongoing spending. Current recommendations call for $9.5 million in reductions, approximately 22% of the annual budget. 

These reductions are necessary to:

  • Eliminate the district’s structural deficit
  • Meet required state reserve levels
  • Restore fiscal stability
  • Ensure long-term sustainability for our schools
 

Enrollment and Staffing

Like many rural districts, PUSD has experienced declining enrollment over the past decade. Staffing levels, however, have stayed the same or increased in some areas. To maintain financial stability, PUSD will realign staffing using:

  • California Department of Education guidelines
  • FCMAT fiscal standards
  • The unique needs of each school site

This work will help us remain both educationally effective and financially responsible.

A Transparent, Collaborative Process

PUSD is committed to developing a responsible recovery plan with input from staff, families, community members, and state partners such as the California Department of Education and FCMAT. Our decisions will focus on protecting core student services while ensuring long-term financial stability.

We value community partnership in this process. We just finished our first round of community meetings in November, and we will continue these conversations with additional meetings in each community in January.

Our Commitment

We will continue to communicate openly and involve our community as we work through this recovery process. Our goal is simple: a stable, sustainable future for PUSD students, staff, and schools.