Chula Vista school board hears budget workshop as district projects multiyear deficit; approves 45‑day state-driven revision

The Chula Vista Elementary School District Board of Education on Monday heard a detailed budget workshop in which district finance staff warned of a multiyear structural deficit and outlined possible reductions and new revenue strategies, then voted to approve a 45‑day revision to the district’s 2025‑26 budget to reflect recent state changes.

The presentation, led by district finance staff and administrators, said the district began 2024–25 with roughly $400,000,000 in total revenue and $451,000,000 in projected expenditures; the district’s adopted multiyear projection showed an unrestricted fund balance decline of about $24,000,000 and an overall projected draw on fund balance approaching $51,000,000 across the planning window.

“This workshop is to provide the board and the public with an overview and detailed information on our budget, where we stand fiscally, and steps we need to take to remain fiscally solvent,” said Dr. Reyes. The presentation outlined revenue shifts in the final state budget, rising pension and health‑insurance costs and increasing costs tied to special education.

Why it matters: district leaders said much of the recent increase in state and federal funding was restricted to specific programs and therefore does not eliminate the district’s underlying shortfall on the unrestricted general fund. That mismatch, staff said, drives the administration’s push for a combination of cost reductions, revenue maximization and structural changes.

Key numbers and changes

- District staff reported total revenue near $400 million at budget adoption and total expenditures of about $451 million. - State actions added roughly $23 million in restricted revenue since the June adoption, including a $1.3 million increase to the learning‑recovery block grant, a one‑time discretionary block grant of about $6.6 million and a projected $15 million boost tied to the Expanded Learning Opportunities Program (ELOP). Staff noted ELOP changes require programs be offered to all students in schools that qualify under the new threshold. - Revenue mix reported by staff: about 69% LCFF (state/local), ~4% federal, ~14% state categorical and ~13% local revenue. - Staff projected a 2025–26 full‑year deficit equal to roughly 10% more in expenditures than revenues for that fiscal year under current assumptions.

Restricted versus unrestricted

“Again, these are all restricted programs,” said Mr. Pong, describing the recent state allocations and emphasizing that those funds cannot be used on the district’s unrestricted obligations. Presenters repeatedly contrasted restricted program funding (federal/state categorical grants, ELOP, learning recovery) with the unrestricted general fund, which covers salaries, benefits and many ongoing district costs.

Drivers of the shortfall

Staff pointed to several structural pressures: - Increasing pension rates for certificated (STRS) and classified (PERS) staff that have risen substantially since 2016–17. - Rising insurance…