Santa Rita schools close books with surplus; district still contesting state’s ELOP recapture and penalty

The Santa Rita Union School District Board of Trustees approved the district’s unaudited actuals for fiscal year 2024–25 Tuesday, recording an ending fund balance after revenue and expenses of about $238,000 and overall budget performance “within 0.8%” of projections, Chief Business Officer Rosa Zamurdio said. Zamurdio told the board the district also faces a separate accounting action by the state involving Expanded Learning Opportunities Program funds. “The funds that they took back this year were $3,700,000,” she said, and officials have filed an appeal. She added, “They did email me back, and they said that the penalties...they’re not gonna process those until 25/26.” Why it matters: the unaudited actuals finalize last year’s cash flows and constrain how the district can plan next year’s one-time and ongoing spending. The ELOP recapture and any penalty could materially change available funds for programs if the state does not adjust the assessment on appeal. Board members heard a line-by-line summary of variances between the board-approved budget and actuals. Zamurdio attributed revenue increases mainly to a higher final enrollment used in the three-year funding average and to a $1.1 million boost in interest earnings. She described timing differences — purchases and construction that occurred after July 1 — as the primary reason some budgeted expenditures appear as year-to-year variances rather than permanent savings. Zamurdio described the ELOP issue in detail: the state recouped $3.7 million this year as unspent allocations for multi‑year ELOP apportionments, and the district’s auditors required the district to book an additional penalty estimate as part of last year’s closing entries. The district’s internal calculation of a possible penalty is approximately $4.4 million; district staff said they have filed an appeal and are seeking clarification from CDE, noting the state’s own guidance that a penalty should not exceed the original allocation. Discussion and next steps: staff told trustees they had submitted documentation, including days of service and preliminary program expenses, to the state and its consultants and were seeking a waiver or reduction in the assessed penalty. Zamurdio said the district will not assume those funds are available for planning until the state responds. Formal action: The board voted 4–0 to approve the unaudited actuals report and related resolutions; Zamurdio will continue to pursue the appeal and update the board if the state modifies its recapture or penalty calculations. Ending: District staff said current cash-flow forecasting shows the district is not deficit-spending for 2025–26 even under the worst-case accounting entries, but a favorable outcome to the appeal would free resources identified now as restricted or payable.