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Vallejo City Unified School District to Regain Full Local Control After Nearly Two Decades of State Oversight

Vallejo City Unified School District to Regain Full Local Control After Nearly Two Decades of State Oversight

After nearly 20 years under state receivership due to a severe fiscal crisis, Vallejo City Unified School District (VCUSD) will officially regain full local governance effective June 30, 2025, marking the end of the current fiscal year.

Vallejo City Unified School District to Regain Full Local Control After Nearly Two Decades of State Oversight
Vallejo City Unified School District to Regain Full Local Control After Nearly Two Decades of State Oversight

VALLEJO, Calif. — After nearly 20 years under state receivership due to a severe fiscal crisis, Vallejo City Unified School District (VCUSD) will officially regain full local governance effective June 30, 2025, marking the end of the current fiscal year. This milestone marks a profound turnaround in the district’s history, achieved through years of strategic financial reform, collaborative leadership, and community resilience.

“This is not just an administrative shift—it’s a full-circle moment for a district that has worked tirelessly to rebuild credibility, restore fiscal solvency, and center student success,” VCUSD Superintendent Rubén Aurelio said. “Our entire community—educators, families, partners, and students—has contributed to this recovery, and we are ready to lead with discipline and vision.”

VCUSD entered state receivership in 2004 after a financial collapse required a $60 million emergency loan to stay operational. Over the following two decades, district officials worked under the guidance of the California Department of Education (CDE), the Solano County Office of Education (SCOE), and the Fiscal Crisis and Management Assistance Team (FCMAT) to rebuild financial stability and restore internal controls.

Key milestones include:

  • Full repayment of the emergency loan in August 2024
  • Completion of required pre- and post-loan fiscal audits, with measurable improvements in accountability systems
  • Expenditure reductions, including the strategic closure of two schools
  • Implementation of balanced budgets and internal controls to safeguard long-term solvency
  • Sustained commitment to aligning fiscal practices with educational priorities

On April 24, 2025, Solano County Superintendent Lisette Estrella-Henderson formally recommended that VCUSD exit state receivership. In her letter to State Superintendent Tony Thurmond and State Board of Education President Dr. Linda Darling-Hammond, she cited strong fiscal recovery and leadership stability as key reasons for the transition.

On April 29, 2025, the California Department of Education officially concurred, confirming that VCUSD met the Education Code Section 41320.1 criteria to exit trusteeship on June 30, 2025.

While the formal end of receivership represents a significant milestone, district, and county leaders emphasize that it is not the end of oversight but the beginning of a new responsibility phase.

VCUSD will now be responsible for independently upholding the following:

  • Balanced multi-year budgeting without reliance on deferred decisions
  • Precise alignment between fiscal plans and the Local Control Accountability Plan (LCAP)
  • Strong internal fiscal systems, reconciliations, and position control
  • Data-driven strategies to improve student outcomes, attendance, and program quality

The District will officially announce the end of state receivership on Monday, June 30, at 11 a.m. at a press conference at the Vallejo City Unified School District Administrative Offices (665 Walnut Avenue, Vallejo, CA 94592). The press conference will feature remarks from California State Superintendent of Public Instruction Tony Thurmond, Solano County Superintendent of Schools Lisette Estrella-Henderson, and Vallejo City Unified School District Superintendent Rubén Aurelio, and all community members, educators, parents, and stakeholders are encouraged to attend.