What are the ramifications of a qualified budget?
Districts that are in qualified status are seen as being at risk of becoming negative (insolvent) and are therefore at risk of being placed in State receivership (e.g. Vallejo, Oakland, Richmond). In simple terms, a qualified budget impacts the District’s credit (the money we borrow to meet payroll costs us more money, which further impacts our program offerings), as well as requiring some oversight of the District’s finances by the County Office of Education.
