Plumas Unified School District faces a critical cash flow challenge tied to delayed property tax payments. The district depends entirely on local property taxes, unlike most California districts that receive state funding to cover shortfalls. Richard DuVarney, the state-appointed administrator, warned the Plumas County Board of Supervisors about the risk of late tax payments, especially the December apportionment. That payment covers payroll, and any delay could disrupt employee salaries.
Property taxes come from local property owners and pass through the Plumas County Treasurer’s Department before reaching the school district. Julie White, the county treasurer-tax collector, explained that payments are due each December and April. The county auditor’s office then distributes those funds to the district and other local entities. White assured the supervisors the county does not hold these funds once collected.
The district expects about $28.76 million in property tax revenue for the 2026-2027 school year, a slight increase from the previous year. Yet, PUSD has experienced delays in receiving these funds before. DuVarney said the district has sometimes waited until January to get December’s payment, causing serious cash flow problems.
PUSD entered state receivership in October 2025 due to a $9.5 million deficit. The district secured a $20 million emergency loan with interest to cover its obligations. The superintendent of the Plumas County Office of Education, Andrea White, cited mismanagement as the root cause of financial troubles. She pointed to unrealistic budgets, late audits, lack of oversight, excessive internal borrowing, and unbacked salary raises as key issues.
DuVarney added that some departments lacked accountability and efficiency, making the financial situation worse. Payroll delays stemmed from a lack of cash, and the district could face similar issues if property tax payments arrive late again.
Feather River College, another local institution funded by county tax allocations, has not seen problems with tax timing but has missed quarterly investment income since June. College president Kevin Trutna said this loss, estimated at $350,000, affects all entities in the county’s investment pool. Trutna and other local organizations have raised concerns about ongoing late payments from the county treasurer’s office. These delays have triggered audit findings for three consecutive years and could lead to increased scrutiny from state officials. The college’s credit rating may also suffer if the pattern continues.
The situation highlights the critical role timely property tax payments play in local government and education finance. Delays ripple through payroll, audits, and
