Desert Sands School District addresses declining enrollment and budget challenges

The Desert Sands Unified School District held its Regular Board Meeting on March 4, 2025, focusing primarily on the second interim budget and enrollment projections. The meeting began with a detailed review of financial data from July to January, highlighting a significant decline in student enrollment over recent years.

The district reported a loss of approximately 2,008 students, equating to a 10.5% decrease since the 2018-2019 school year. Projections for the upcoming year indicate a further decline of 1.1%, which translates to a loss of about 750 students over the next two years. This trend is attributed to a larger number of outgoing seniors compared to incoming students, largely influenced by declining birth rates.

The financial discussion emphasized the Local Control Funding Formula (LCFF), which constitutes 67% of the district's revenue. The board noted that while the governor's budget proposes a 2.43% cost-of-living adjustment (COLA), the district's declining enrollment means that the anticipated increase in funding may not offset the financial challenges posed by reduced student numbers. The district is forecasting a surplus of $704,000 for the next year, but this is complicated by fixed costs, including salary increases and rising utility expenses.

The board also addressed the impact of one-time COVID relief funds, which have significantly bolstered the district's finances but are set to expire in the coming years. The discussion highlighted the importance of planning for sustainability beyond these temporary funds, as many programs funded by these resources will not be available in the future.

In terms of fiscal health, the district's unrestricted general fund balance was reported at 43.6%, significantly above the state average of 24.36% for unified districts. However, the board acknowledged that while reserves are healthy, the district is still operating at a deficit, necessitating careful financial management to avoid cuts to staff and programs.

The meeting concluded with a commitment to maintaining strong fiscal stewardship and exploring creative solutions to sustain programs and personnel in light of ongoing financial challenges. The board expressed gratitude for the efforts of the district's financial team and emphasized the importance of supporting staff and students as they navigate these changes.