Santa Rita Union District projects multi‑year deficits, moves ahead with planned Series B bond sale

The Santa Rita Union Elementary School District presented its draft 2025–26 budget at a public hearing Tuesday, showing a projected $4.5 million deficit for the upcoming year and continued multiyear shortfalls driven largely by the expiration of one‑time state and federal grants.

The presentation, led by district finance staff, said the district expects to maintain a 17 percent reserve for 2025–26 but that ongoing budget pressure from enrollment declines, step and column salary increases, higher benefit costs and special education needs will require program adjustments or new revenue in later years.

District staff told trustees the district’s Local Control Funding Formula (LCFF) revenues were slightly down in the draft because declining average daily attendance offsets a higher cost‑of‑living adjustment (COLA). The presentation noted several onetime grants that supported programs in 2024–25 — including federal and state grants and a COPS/other one‑time allocation for security — will not recur, producing a roughly $1.2 million reduction in revenues compared with the prior year.

Officials walked the board through the multiyear projection showing the district expects to need additional cuts over the next two to three years if state funding does not materialize. The projection included a line item noting an assumed $3.2 million prior‑year reduction that, if not implemented in an earlier year, would carry into later years and increase the total reductions needed in 2027–28.

Trustees asked staff whether the district must accept state guidance numbers for future COLA estimates or whether the district can adopt more conservative projections. Staff said the budget follows the May Revision proposals and county guidance but that numbers can be adjusted in the required 45‑day revision after the state budget is adopted.

Separately, staff provided information that the district intends to pursue the sale of its previously authorized Series B general obligation bonds earlier than originally scheduled. Trustees were told they will be asked at a future meeting to adopt a resolution authorizing a Series B sale in early August 2025 for roughly $7 million, and that staff are evaluating a bond anticipation note to accelerate access to funds for ongoing construction without exceeding the district’s Prop. 39 tax rate limit.

Board members and staff repeatedly framed the projected deficits as largely the result of expiring one‑time funds and declining enrollment and urged continued community outreach to explain that some services supported with temporary funds may not continue without new revenue. Staff said they will update the draft as state budget actions and enrollment data become final and bring a 45‑day revision back to the board for adoption.

The hearing was closed with no immediate action taken; the board will consider the final budget and related resolutions at future meetings.