California education officials say a clerical error in the state’s payment system led to millions of dollars in school funding being sent to the wrong counties earlier this year — and in some cases, counties were asked to send the money back.
The mistake, traced to a bank account misalignment inside the state controller’s payment system, affected 11 California counties, according to the California State Controller’s Office. Some counties received far more than they were owed, while others were shorted millions.
State officials say all counties have now been made whole and that new safeguards are being put in place to prevent similar errors.
What went wrong with California school payments
The error occurred in late January, when the state issued its regular K‑12 education apportionment payments to counties.
In a Feb. 19 letter to the Shasta County Office of Education, the controller’s office said a problem in its payment system caused the county to receive $27.4 million when it should have received about $21.1 million.
“We respectfully ask that the County return the overpayment,” the controller’s office wrote, requesting repayment by early March.
At the same time, other counties were underpaid — including Siskiyou County, which initially received only a fraction of its full allocation.
Counties asked to repay overpayments
Some counties were required to return large sums after receiving far more than expected. State officials said those funds were not meant for the counties that received them.
Counties asked to repay school funding include:
Shasta County officials said the money had not been spent or budgeted by local school districts before the error was discovered, minimizing any disruption.
“There was little to no impact on our districts,” said Shasta County Office of Education spokesperson Kerri Schuette, adding that state agencies moved quickly to correct the issue.
Sutter County received more than four times what it expected
Sutter County’s overpayment stood out for its size.
County officials said they were expecting about $25 million, but instead received $105 million — more than four times the anticipated amount.
“This is a weird one,” Sutter County Auditor‑Controller Nathan Black told county supervisors during a March 10 meeting. He said the error appeared to stem from an extra row being added to the state’s distribution worksheet, causing counties to receive funds intended for others.
Part of Sutter County’s overpayment included $60 million intended for Stanislaus County. That money was later returned to the state through an electronic transfer rather than a physical check.
Black said the county plans to keep any interest earned while the money briefly sat in Sutter County’s accounts.
Which other counties were affected
In total, 11 counties received either too much or too little funding due to the state’s error, according to the controller’s office.
The counties affected were:
State officials said all county budgets have now been fully corrected, including those that were initially underpaid.
What the state says happens next
The California State Controller’s Office said it is implementing additional safeguards, including enhanced review and approval processes, to prevent similar mistakes in future education payments.
Officials emphasized that despite the confusion, school districts ultimately received the funding they were entitled to for the 2026 fiscal year.
This article originally appeared on Palm Springs Desert Sun: California error sends millions to wrong counties, then asks for it back
Reporting by Jessica Skropanic, USA TODAY NETWORK / Palm Springs Desert Sun
USA TODAY Network via Reuters Connect
