San Rafael school board accepts 2024–25 unaudited actuals; officials warn of structural deficits

The San Rafael City Schools Board of Education approved the district’s 2024–25 unaudited actuals for both the elementary and high school districts on Sept. 9, after a presentation from business services that showed small improvements over interim projections but persistent structural deficits.

District staff presented the unaudited actuals as the definitive accounting of what came in and what went out for the fiscal year ending June 30, 2025. “This is the one time during the life cycle of a budget where you actually get to feel a sense of where the district's finances are,” a district business services presenter said.

The presentation showed the elementary district closed the year with an ending fund balance equal to about 17.6% of total expenditures — roughly in line with the board’s stated reserve goal — while the high school district finished with a much smaller reserve, about 4.8% of expenditures. The business presenter described the high school reserve level as “dangerously low” and said both districts carry structural deficits: roughly $800,000 for the elementary side and about $589,000 for the high school district that must be addressed in upcoming budget planning.

Nut graf: Why this matters — the unaudited actuals set the baseline for the 2025–26 budget process and the board-directed budget advisory committee schedule. Staff said the district will need to consider reductions to eliminate structural deficits and preserve reserves while managing how one‑time pandemic-related and new state block grant funds are used.

Supporting details: The presenter explained why unaudited actuals sometimes show a better outcome than second interim estimates: conservative budgeting, timing of grants and apportionments, unfilled positions, and reallocations from unrestricted to restricted accounts can all produce a positive “swing” between second interim and the unaudited closing. For the elementary district the swing was about $1.6 million; the high school district saw roughly $870,000 of positive variance compared with the February second interim projection.

Staff also outlined new and augmented state funds that affect short- and mid-term planning. The state augmented the learning recovery block grant and introduced a student support professional development block grant (resource 6019 in district budgeting). Staff said those funds are discretionary block grants that the district is still learning how to budget and report against; they do not, in staff’s plan, replace dwindling pandemic-era one-time dollars but may postpone some spending into 2026–27.

Board response and next steps: Trustees asked about causes of the swings and about enrollment and attendance impacts on revenue. The presenter said average daily attendance (ADA) remains below pre‑pandemic levels — the elementary ADA ended the year at about 95.17% and the high school ADA at about 91.22% — and urged continued attention to attendance because funding follows students.

The board directed staff to bring the first interim report and to begin the budget advisory committee process; the presenter said the committee would set priorities and help the district make fair decisions about potential reductions.

Actions: Trustee Daniella Marsh moved and Trustee Lau seconded approval of the elementary unaudited actuals; the motion passed by voice vote. Trustee DeNamah Marsh moved and Trustee Lau seconded approval of the high school unaudited actuals; that motion also passed by voice vote.

Ending: District staff said they will use the budget advisory committee meetings this fall to refine recommendations and identify reductions, beginning with elimination of the structural deficits to stabilize reserve levels.