Executive Director, Jason Watts, presented the organization update. Topics covered include:

• Leadership Updates
• $400K Math Gateway Improvement Grant (50% at signing, 50% Spring 2027)
• Scholarship Prep - South Bay Renewal
• Scholarship Prep - Oceanside HVAC Project (board approved 5/21/26)
• Scholarship Prep - Orange County HVAC Project (pending city plan check, cost and scope not yet final)
• Bills/Legislation - CalSTRS Update

Financial Update and 2026–27 Budget Presentation Summary

Jason Sitomer from Charter Impact presented the May financial update and proposed 2026–27 budgets for all Scholarship Prep schools.

May Financial Update

• Updated projections were based on certified P2 ADA figures, which determine the majority of state funding.
• All schools experienced slight ADA declines compared to prior projections, resulting in reduced LCFF revenue. 
• Expense adjustments primarily reflected lower-than-anticipated supply purchases and year-end spending, partially offset by increases in special education and consultant costs.
• Upland's forecast increased by approximately $1 million due to a proposed $800,000 LLC donation and a $200,000 shift of Charter School Growth Fund revenue.
• Cash reserves remain strong at Oceanside, Orange County, and South Bay. Riverside and Upland required borrowing during the year and are expected to require limited borrowing next year to bridge cash flow timing associated with growth and state funding delays. Assuming enrollment targets are met, Riverside and Upland are expected to require no additional borrowing after next year and can begin repaying intercompany notes in future years.

State Budget Update - changes between the Governor's January proposal and the May Revision:

• The COLA increased from 2.4% to 4.3%, resulting in additional funding for schools statewide.
• Special education funding increased significantly, with statewide funding rising from approximately $1,000 to $1,340 per ADA.
• The Student Support and Professional Development Block Grant increased from a proposed $2.8 billion to more than $5 billion statewide, providing approximately $940 per ADA that may be used over the next four years.

2026–27 Budget Highlights

• Projected operating surpluses for the upcoming fiscal year for each school site
• Key budget assumptions include:
  • Increased revenue from ADA growth, the 4.3% COLA, increased special education funding, and state grant funding.
  • Staffing cost increases due to salary schedule movement, additional staffing, and rising healthcare costs.
  • Healthcare premiums are projected to increase approximately 15–20%.
  • Riverside and Upland continue to experience cash flow challenges related to rapid growth and delayed state funding but are projected to stabilize as enrollment matures.
• Charles asked what the percentage at the bottom of the budget columns represents, and Jason Sitomer explained that it reflects the school's projected ending fund balance as a percentage of annual expenditures. 

EPA Resolution

• Jason presented the annual Education Protection Account (EPA) resolution, which allocates EPA funds toward teacher salaries and benefits, consistent with state requirements. The resolution must be approved separately from the budget and will be reported again during the unaudited actuals process.
• Charles stated that the EPA funding amounts seem small and asked if that was correct. Sitomer explained that EPA funding is simply a component of overall LCFF funding. Schools founded after 2012 receive a smaller EPA allocation, but they do not receive less total funding overall because the remaining funding is provided through general state aid.

Consolidated Application - authorizes participation in federal Title funding programs. All five schools will continue participating in Title I, Title II, Title III English Learner, and Title IV. The schools will not participate in the Title III Immigrant funding program, consistent with prior years.

Andrew Crowe presented the annual Local Indicators report, which is required as part of the Local Control and Accountability Plan (LCAP) process. The report addresses several California State Priority areas, including:

• Basic Services (credentialed teachers, instructional materials, and facilities)
• Implementation of State Academic Standards
• Parent and Family Engagement
• School Climate
• Access to a Broad Course of Study for all student groups, including students with disabilities and English learners

He reported that all Scholarship Prep campuses met the applicable local indicator standards. Orange County, Oceanside, and South Bay met all indicators, and the newer campuses, Riverside and Upland, also met required measures. Riverside families were specifically recognized for their strong engagement during the school's first year through participation in parent groups, School Site Council, and board meetings.

A summary of survey and indicator data identified the following strengths across campuses:

• Strong student and staff relationships, with students expressing appreciation for their teachers.
• Effective communication and partnerships with families.
• Positive perceptions of school safety and belonging.
• Continued support and access for vulnerable student populations.

Areas for continued growth included:

• Increasing opportunities for family involvement beyond school events and ceremonies, including greater participation in parent organizations and School Site Councils.
• Improving student engagement at the middle school level, as survey data indicated engagement tends to decrease as students get older. Staff will continue exploring ways to maintain the K–8 model while providing developmentally appropriate experiences for middle school students.

The Local Indicators data will be submitted to the state reporting portal and made available publicly.

Andrew Crowe presented the Annual Update of the Local Control and Accountability Plan (LCAP), marking the conclusion of the current three-year LCAP cycle. The LCAP process includes reviewing academic, operational, and stakeholder feedback data, with a particular focus on foster youth, English learners, and low-income students. He explained that the organization conducts ongoing reviews of expenditures, student outcomes, and stakeholder input to ensure alignment with established goals and state priorities.

Andrew noted that, under updated state guidance, the required LCAP public hearing and approval meeting were combined into a single meeting. The current cycle successfully met many established goals, while some areas remain opportunities for continued improvement. A new three-year LCAP cycle will be developed and presented next year.

The three LCAP goals reviewed were:

1. Access for All – Ensuring students have access to qualified staff, curriculum, instructional materials, technology, and safe facilities.
2. Success for All – Supporting academic achievement for all student groups through targeted interventions, teacher coaching, data analysis, and extended learning opportunities.
3. Belonging for All – Promoting positive school culture through family engagement, student and staff surveys, attendance monitoring, discipline data review, and stakeholder feedback.

Improvements were made during the LCAP cycle, including expanded technology support, facility improvements, instructional resources, and continued focus on student subgroup performance and extended learning programs.

Charles asked how survey data is collected and used once it is received? Principal Chantel Van Pool explained that surveys are distributed to families, students, and staff through multiple communication channels, including newsletters, direct messaging, and classroom support. Participation is encouraged by emphasizing the importance of stakeholder feedback.

Once survey results are collected, principals and staff review and analyze the data through team meetings, professional development sessions, and leadership discussions. The information is used to identify strengths and areas for improvement, inform school planning, establish action steps for future semesters and school years, and guide family leadership discussions. Survey data is maintained as historical data and is also reviewed by Home Office leadership as part of the LCAP planning and evaluation process.

The Board entered the closed session at 3:08pm.

Board President, Charles Friedrichs, reported out of close session at 4:18pm.