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District reports $1.3M reserve draw, $8.9M annual revenue loss from enrollment decline; board approved $2M reduction plan
Summary
Chief Business Official Meredith Davidson reported the district ended fiscal 2024–25 with $83.6 million in general fund revenues, $90.1 million in expenditures and a $1.3 million reserve draw linked to enrollment declines and rising costs.
The San Ysidro School District’s Chief Business Official presented the unaudited actual financial report for fiscal year 2024–25, showing a combined general fund revenue total of $83.6 million and expenditures of $90.1 million, which required the district to draw approximately $1.3 million from its reserves.
Key facts: The local control funding formula (LCFF) accounted for about 69% of revenues; the district reported a very low 2024–25 cost‑of‑living adjustment (COLA) of 1.07% and enrollment declines that together increased fiscal pressure. The presentation showed an eight‑year decline of 591 students across district sites, which staff estimated equals about $8.9 million in lost revenue per year.
Why it matters: Persistent enrollment declines and modest state COLA increases are reducing revenue while costs such as special education and reclassification expenses rose. The district reported increased special education costs of about $600,000, a $236,000 reclassification cost in 2024–25, and other cost increases that contributed to the deficit.
Board actions and planning: The presentation thanked the board for approving a 2025–26 budget reduction plan of $2.0 million and said district staff will prepare another reduction plan for the first interim of 2026–27 to resolve the $1.3 million reserve dip. Staff noted the district maintained positive certification and clean audits in recent years but that further reductions will be necessary to return to a structurally balanced budget.
Follow up: Board members requested that the unaudited actuals be posted on the district website and that staff meet with employee groups and management to explain the drivers of reductions and the planned approach for upcoming budget adjustments.
