Thumbnail photo by Paul Critz Del Norte Unified School District is in a better place financially than it was in June when trustees adopted its 2025-26 budget. But, though he said DNUSD’s budget deficit decreased 20% from about $4.6 million on June 30 to $3.4 million as of Thursday, Assistant Superintendent of Business Greg Bowen said reducing the district’s overall costs need to continue. This includes a potential “reduction in force” as well as an ongoing “hiring frost” this year, Bowen said in his first interim financial report to the Board of Trustees. This recommendation prompted DNUSD Board President Charlaine Mazzei to call for more transparency about what reductions need to be made and when. “We don’t have as many grants as the County Office (of Education) does, but if there is short-term funding that is coming to an end and if there isn’t an obvious path to continue that program or those people, we need to give plenty of lead time for the community to understand that this is ending and if we can ship people around then we will, but we won’t always be able to,” said Mazzei, who has been part of a series of budget forums with her colleague Trustee Area 5 representative Michael Greer. “I just want to be transparent about it. Even if it’s a hot topic of conversation within this building, it doesn’t mean anybody else knows about it.” Mazzei’s comment prompted Amber Tiedeken-Cron, president of the Del Norte Teachers Association, to suggest the district consider an effort to rebrand itself so it stands out from the Del Norte County Office of Education. Cron mentioned seeing a newer model KIA with a Del Norte logo on it on a run with a friend and having to explain to her that it was probably paid for by the County Office of Education. “They said, ‘Well you guys need to wise up and logo-separate, brand it different.’ I thought I would mention that,” Tiedeken-Cron said. “We were Del Norte County Unified School District when I was younger and I know the county made things work, but maybe we do need to look at that to help make it more transparent for the public. When they see the blue and green DN, they think district.” Adoption of the 2025-26 budget in June capped a process that began in March and included layoff notices to teachers and classified staff, which were later rescinded. Parents and staff also expressed dismay at teachers being moved to different school sites as a way of addressing budget shortfalls. On Thursday, Bowen said DNUSD had a positive certification of its budget as of the first interim financial report, meaning it’s able to meet its financial obligations in the next three fiscal years. However, though the budget shortfall has decreased from what was projected in June, it’s expected to grow in the 2026-27 and 2027-28 fiscal years. Pointing out that DNUSD developed its 2025-26 budget in May before the state adopted its own budget, Bowen said the amount of funding the district received in Local Control Funding Formula dollars increased by 2.3% from what was projected in June. This is due to an increase in property tax dollars as well as funding for transitional kindergarten, he said. Additional funding was allocated to the Expanded Learning Opportunities Program. DNUSD received a Student Support Block Grant, which can be used for overhead costs and other expenditures. And ‘O Me-nok Learning Center in Klamath received funding for literacy coaches and reading specialists, Bowen said. As for federal funding, though Bowen said it was mostly flat, he noted that Congress approved the Secure Rural Schools Act on Wednesday. According to Oregon Public Broadcasting, the Senate approved the Secure Rural Schools Reauthorization Act of 2025 in June. It now heads to President Donald Trump for his signature “SRS helps those rural communities so it’s good to see,” Bowen said. “We use that as cash flow reserves. The good news is they’re going to retro that from 7/1/24.” DNUSD receives between $600,000 and $650,000 in SRS dollars, which Bowen said it will use for additional cash. DNUSD’s projected revenues include $46.6 million in Local Control Funding Formula dollars, about $12.8 million in state categorical programs and grant dollars, $4.7 million in federal revenue and $9.58 million in community partnerships and local funding sources. According to Bowen’s first interim report, DNUSD’s overall revenue at $73.7 million reflects a 4% increase from the adopted budget. As for expenditures, Bowen projected a 2.3% increase from the adopted budget. This includes salaries and benefits, capital outlay, services and direct support services. A 2% salary increase is expected for all district employees, Bowen said, but it’s got to come from somewhere. “Our revenue is not growing. We don’t expect it to grow,” he said, pointing out that the State of California is projecting an $18 billion deficit and there will be turnover with a new governor and state superintendent of schools. “I think a positive certification is an improvement from the adopted budget. We saw additional revenue from the state. But down the road, we need to be mindful.” Following Tiedeken-Cron’s comment, Shawn Schubert, president of the California School Employees Association Great Northern 178 chapter, said he has also heard frustrations from people who see the County Office’s new vehicles thinking that they belong to the school district. Schubert also addressed Measure H, the general obligation bond DNUSD had on the general election ballot in 2024. “A lot of people were complaining that we were going to use it for the art center they’re talking about building,” he said. “That was the biggest rumor that was going around at the time — ‘I’m not going to pass that bond because we don’t need it.’ A lot of people start rumors and the next thing you know it’s like a fire and it’s all over the place.” A third public commenter suggested the public listen to a podcast featuring Superintendent Jeff Harris where he talks about the difference between Del Norte Unified School District and the County Office of Education.