Board certifies positive second interim budget; staff flags multi‑year deficits and proposes advisory committee
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Summary
Trustees approved the district’s second interim budget report and an amendment reflecting updated revenue and expenditures; staff recommended establishing a budget advisory group to plan multi‑year reductions and monitor cash balances.
The Placer Union High School District board certified a positive second interim budget for the 2024–25 fiscal year and approved an amendment to reflect updated revenues and expenditures. The district’s finance staff presented the second interim, reviewed multi‑year projections and warned trustees of projected deficits that will draw on reserves over the next two fiscal years.
District finance staff said the general fund projects approximately $63.1 million in revenues and $69.9 million in expenditures, producing a net decrease in general fund balance this year. The district’s unrestricted reserve (economic uncertainties) was reported near district policy minimum (about 3 percent), and staff explained planned transfers from special funds (including a technology endowment and stabilization funds) to meet obligations. "Based on the second interim report, we are meeting our financial obligations for the current and subsequent two fiscal years," the district’s budget presenter told the board, while noting ongoing pressures such as rising utilities and employee benefit costs outpacing COLA increases.
Trustees approved the budget certification by roll-call vote and passed a resolution amending the 2024–25 budget to reflect updated revenue and expenditure details. The board also authorized staff to reconstitute a budget advisory group for 2025–26 to develop options for longer‑term structural adjustments. Staff identified possible actions including targeted freezes of vacant positions, non‑personnel spending reductions (for example supplies and travel), and increased focus on attendance and ADA recovery as means to improve revenues.
Trustees discussed the mechanics of LCFF funding and attendance (ADA), the lag in ADA calculation, and the potential for state changes to federal or state funding flows. Staff said they would return with a finalized budget after the May revise and continue to brief the board on multi‑year planning steps.