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Gateway Unified previews 2025-26 budget, projects multi‑year shortfall amid declining enrollment
Summary
District staff presented the draft 2025–26 preliminary budget and multi‑year projections, warning of an accounting anomaly that creates an estimated $4 million shortfall next year and a longer‑term decline tied to 10 years of falling enrollment and ADA.
District staff presented the Gateway Unified School District draft 2025–26 preliminary budget at a public hearing and walked board members through multi‑year projections showing declining enrollment and a near‑term funding shortfall.
Kyle (staff member) led the presentation and said the district expects LCFF revenue to rise with a 2.3% cost‑of‑living adjustment but that other factors leave the district “actually looking at about a $4,000,000 deficit for next year.” He told the board the apparent shortfall largely reflects one‑time carryover and planned one‑time spending that the district intends to expend by June 2026 rather than an ongoing operating gap.
The presentation summarized 10‑year trends the district used for the projection. Staff said student enrollment fell about 8% over the decade, average daily attendance (ADA) fell about 10%, and funding declined roughly 13% over the same span. Using those trends, staff modeled modest further declines for 2026–27 and 2027–28 and described planned staffing and one‑time spending adjustments to address the gap.
Staff broke down revenue and expense assumptions: LCFF increases tied to the state COLA, federal grant revenues held roughly flat pending allocations in fall, and local revenues from property taxes and special education transfers. On the expense side, the presentation included planned rolling of positions, anticipated increases for salaries and benefits already under consideration, and use of one‑time funds for purchases carried into the 2025–26 year.
Board members asked for clarification about enrollment drivers and attendance timing. Kyle and staff described efforts to recapture students—particularly through transitional kindergarten and outreach—and noted that some centrally budgeted purchases had been pushed into 2025–26. Staff said restricted funds and carryover create a temporary appearance of a deficit that would be consumed if the district spends the one‑time dollars as planned.
On reserves, staff reported legally restricted reserves of about $8.1 million and assigned reserves of about $5.1 million, for total reserves of roughly $15.3 million; staff said those levels meet policy minimums and provide a buffer against economic uncertainty. Staff also said they will update the board at the regular interim reviews and perform a 45‑day revision if the state provides additional block grant funding.
The board held the budget as a public hearing item; no budget motion was required or taken at that hearing. Staff said they will return with revised projections and recommended interim adjustments as state and local figures are finalized.
