Board approves second interim financial report; staff says revenues look stronger and COLA estimates trimmed

The San Bernardino County Board of Education voted to approve its second interim financial report after a presentation from business services staff on state revenue trends and local budget adjustments.

Jessica Hurst (internal business services) and other staff described modest revenue increases and several budget adjustments: restricted revenues were reduced for some federal grants that align with the federal fiscal year, but LCFF and property tax increases offset declines. The budget now assumes a 2% salary cost‑of‑living adjustment based on benchmark district settlements; staff said the current actual benchmark average is about 1.76 percent.

Staff noted the county would submit a positive certification to the California Department of Education, signifying no projected cash‑flow problems. Board members asked detailed questions about ESSER/ARPA uses and the proportion of funds going to direct student supports (tutoring, summer learning) versus other activities. Staff acknowledged ESSER reporting is complex because multiple funding pots (ESSER 1, ESSER 2, ESSER 3 and other relief grants) were used across programs.

The board also discussed auditor engagement language and asked staff to coordinate with the auditors and, if needed, arrange a meeting between board representatives and the auditors to review audit planning and risk items.

Next steps: Staff will post follow‑up materials, provide additional detail on ESSER spending categories and deliverables, and communicate with the external auditor about any requested board briefings.