SJ grand jury: Stockton Unified needs to make critical changes to avoid dire financial trouble

The Stockton Unified School District Board of Trustees must implement better financial management and leadership policies to avoid financial trouble, conflicts of interest and increase transparency, the 2021-22 San Joaquin County grand jury said in a report released Friday.

Read more: Stockton Unified School District Superintendent John Ramirez Jr. resigns after just one year on job

The grand jury wasted no time in painting a picture of the district, which recently saw the resignation of Superintendent John Ramirez Jr.

“With deficits approaching $30 million per year by fiscal year 2024-25, the financial forecast for Stockton Unified School District is dire.”

Ongoing expenses are being paid with limited-time funds, grants are not being managed appropriately and experienced personnel who would address these “critical issues” are leaving, the grand jury report said. Outside staff and consultants are being hired to cover “essential duties.”

Past findings: Grand jury finds Stockton Unified trustees failed as district leaders in scathing report

The Board of Trustees “often make critical decisions with minimal data, knowledge and consideration.”

The report says that the San Joaquin County Office of Education has hired FCMAT, the state agency charged with conducting fiscal oversight of public education, to conduct an AB139 Extraordinary Audit.

The Extraordinary Audit is the first such audit of a San Joaquin County public school district. The only other Extraordinary Audit in the county was a review of an independent charter school in 2015, the report said.

According to the grand jury report, if the Extraordinary Audit finds financial mismanagement, misuse of funds or insolvency, Stockton Unified could be placed in state receivership. The receivership, which would be administered by the San Joaquin County Office of Education, could include firing the superintendent and suspending the Board of Trustees as a decision-making body for the district.

The audit will take between 12-18 months to complete.

The new report comes less than a year after the 2020-21 grand jury found the Board of Trustees had failed as district leaders and will likely continue to do so.

In a scathing 33-page report, that grand jury said Stockton Unified trustees are the direct reason for what's been called the district's "revolving door" of superintendents.

"The grand jury found that there is widespread concern about the short tenure of SUSD superintendents, especially in the last 15 years," the report said. "This turnover rate, which is as high as anywhere in California, is a foremost indication that the trustees have failed, and will continue to fail, to effectively lead the district."

Trustee behavior and actions have negatively impacted SUSD and made it "difficult, if not impossible," for any lasting, positive changes to take hold, the report says. Trustees have also been found to have contributed to declining trust and morale of employees and the community.

The previous grand jury found other issues of serious concern, including a "disregard of policies and procedures, especially regarding hiring; trustee behavior, especially during meetings; trustee disregard of their appropriate roles, inappropriate complaints, especially by trustees against other trustees; and deficient transparency, making it difficult for the public to understand what is taking place."

In a draft response trustees said the civil grand jury "ignored the weight of evidence, and that it instead has generally chosen to support the views of a disgruntled minority" and emphasized negative aspects of the board. Trustees declined to implement many of the grand jury recommendations.

Read the full report:

Stockton Unified School District: A Failing Grade in Public Trust by West Hub on Scribd

For more on this developing story, return to recordnet.com.

This article originally appeared on The Record: Grand jury: SUSD needs to change to avoid dire financial trouble