CVUSD board files positive certification but projects $44.3 million deficit in 2024-25 second interim

The Coachella Valley Unified School District Board of Trustees approved the district's 2024–25 second interim budget report and multi‑year projection, filing a "positive certification" even while presenting a projected deficit of $44,300,000 for the current fiscal year.

Superintendent Tavares, who presented the report, said, "At this time, the District is filing a positive certification that we will meet our financial obligations in the current and in the two subsequent years." The report reflects revenues of $373,600,000 and estimated expenditures of $417,000,000 through June 30, 2025.

The report matters because the district must certify whether it can meet its financial obligations; staff said the district's current numbers show it will meet the minimum required reserves in the near term only if planned reductions are implemented. The board vote to accept the interim report was unanimous.

District staff told the board the second interim reflects revenues and expenditures through Jan. 30, 2025, and uses several assumptions: an estimated funded average daily attendance (ADA) of about 14,009 (the district's estimated actual ADA was higher at 14,417 but funding is based on prior-year averages), statutory cost‑of‑living adjustments (COLA) from state projections for the coming years, and negotiated salary step increases. The presentation said certificated step-and‑column increases of 2% and classified increases of 1% were included in the budget; health‑and‑welfare caps of $21,655 for certificated and $22,000 for classified staff were also listed.

On reserves and balances, the presentation showed a beginning combined fund balance of roughly $148,000,000, projected revenues of $373,600,000, and projected expenditures of $418,000,000, leaving an estimated year‑end deficit of $44,300,000 and an ending general fund balance stated as "a hundred and 4" in the presentation. Staff also described a stabilization commitment of $46.8 and an economic‑uncertainty reserve described as "12.5." (Numbers are presented as they were provided in the board presentation.)

Staff emphasized that the district's multiyear projection remains in a structural deficit: even with the reductions already approved and included in the projection, the district projects continued deficit spending in later years unless additional actions are taken. Staff noted that the reductions the board had already approved are necessary to meet the three‑percent minimum reserve in the projection; without those reductions the district would not meet the reserve requirement. Staff also said that if approved cuts are implemented now, the district would reduce the amount it would otherwise need to cut in subsequent years; one projection cited a potential additional need of about $7,500,000 in a later year if current assumptions hold.

Board members pressed staff on several line items. A trustee asked about an increase in books and supplies compared with past actuals; staff responded that the uptick reflected unspent one‑time dollars that must be maximized before the fiscal year ends, and that the Local Control and Accountability Plan (LCAP) alignment and planned activities required additional budgeted supply and contracted services dollars. Staff said they would provide updated unaudited actuals in September to reconcile budgeted versus actual spending.

Board members also asked about how layoff reductions already in the budget affect the projection; staff replied those reductions lower salary expenditures and are reflected in the multiyear projection. Staff clarified that enrollment growth and ADA differ: while enrollment was reported at about 15,900 students, ADA (the attendance measure used for funding) is lower because students are not present every day. Staff said increasing ADA is an initiative the district is pursuing to improve revenue and reduce the structural deficit.

Superintendent Tavares and staff outlined next steps: the district will finalize P2 data (the attendance reporting that determines final funding), incorporate the state's May revise to adjust revenue assumptions, present budget development for 2025–26 in May or June, and present unaudited actuals in September.

Board action: the board approved the 2024–25 second interim report and the multi‑year projection (motion and vote recorded during the meeting; motion carried). The certification was filed as "positive," per the district presentation.

Looking ahead, staff repeated that while the district meets minimum reserve thresholds in the short term with the planned reductions, it must continue work to address the structural deficit through a mix of spending reductions, increased ADA/revenue, and ongoing monitoring of one‑time versus ongoing expenditures.