A Bond Oversight Committee is calling out Turlock Unified School District leadership, accusing Superintendent of Business Services Barney Gordon of knowingly greenlighting a noncompliant classroom project, a decision they say cost the district approximately $8 million in state grant funding.

The issue centers around kindergarten classrooms built at Osborn Elementary School. According to the California Department of Education (CDE) and the Office of Public School Construction (OPSC), the classrooms fall short of the state-mandated 1,350 square feet required to qualify for matching grants. Despite internal concerns, the district proceeded with construction.

Emails obtained by CBS Sacramento show Gordon raised the alarm more than once.

"I am a little concerned… as it looks pretty clear that kindergarten classrooms need to be 1,350 square feet," he wrote in August 2021.

A year later, in September 2022, Gordon emailed, "The CDE indicated the kinder classrooms do not meet the 1350 SF for Title V. If this stands… it will be a severe blow to our finances."

Despite those warnings, the classrooms were built and the district never submitted an application for state funding.

"As of August 4, 2025, OPSC has not received an Application for Funding from the school district," the Office of Public School Construction told CBS Sacramento. "If any of these classrooms are occupied, the school district's project is ineligible for New Construction funding."

The CDE confirmed it never received a final submission either, stating, "A district may request an exemption to the design, which CDE would evaluate on a case-by-case basis. The district elected not to address the comments and submit the project requesting final approval."

Turlock Unified denied any financial loss.

"The District has not lost any state matching eligibility," Turlock Unified said in a statement.

When asked specifically about Osborn Elementary, the district shifted to broader funding categories, saying, "There is no impact to modernization eligibility nor funding, and there is no correlation to any past projects."

But the Bond Oversight Committee, an independent body tasked with monitoring the use of taxpayer-approved bond funds, says otherwise. In their first official meeting in nearly two years, members said the district's lack of transparency and compliance led directly to the loss of millions.

Committee Chair Lacy Elliott, along with other committee members and parents of students, pointed the blame at Gordon.

"He says it's a blow to our finances… well, it's not just a blow to our finances. It's a blow to our kids," Elliott said.  "He lost our school district approximately $8 million in state funds."

Members also confirmed Gordon removed their meeting minutes and alleged the district made it nearly impossible for the committee to meet, stripping them of their independent oversight.

State officials confirm the district can't recover the money through other programs either.

"Modernization eligibility requires permanent buildings to be at least 25 years old and relocatable buildings at least 20 years old," OPSC said. "At present, the school site does not have any Modernization Program eligibility on record."