Eureka Union budget preview: trustees told multi‑year plan holds but growth and state uncertainty require caution

Eureka Union School District’s chief business officer told trustees the district’s proposed 2025–26 budget projects more than $50 million in revenue and a positive multi‑year outlook but includes caveats tied to state budget actions, attendance trends and necessary deferred maintenance.

Melissa Mercado described the fiscal assumptions behind the draft adopted budget, including a 2.3% COLA in the governor’s May revision and continued exposure to state changes in programs such as ELOP and the proposed student support block grant. “We are told to use caution,” Mercado said, noting the state adopts a budget by June 30 and the district will present a 45‑day revision in August once enrollment and state decisions are firmer.

Why it matters: Enrollment growth supports revenue but also requires staffing and facility investment. Mercado told trustees the district assumes a baseline student count of about 3,500 in the multi‑year projection and expects to meet obligations across the projection; additional students would increase revenue but also require corresponding staffing additions.

Key budget choices presented: Mercado outlined personnel additions in the proposed budget — a mix of certificated and classified hires to accommodate enrollment, a TOSA position in student services, an assistant principal position, additional counselors, and increased hours for health and paraeducator support. She proposed increasing the district’s deferred maintenance allocation from $450,000 to $650,000 and noted multi‑year settlements and step increases pushed base salary costs higher. She also described reductions in one‑time capital (wireless upgrades, bus purchases) compared with the prior year.

Board concerns and process: Trustees asked how fast the district can recruit staff if counts rise; district staff said hiring timelines and credential availability vary by assignment and that principals and central office monitor “chairs” at grade levels to trigger hiring. Trustees stressed a cautious approach given state budget uncertainty and the risk of federal funding reductions for Title II/III/IV. Mercado said the district will not book certain proposed new state discretionary funds until the state budget is final.

Public hearings and next steps: The board opened and closed the public hearing on the proposed budget during the meeting. Mercado said the district will return with a 45‑day revision in August that reflects the state’s adopted budget and updated enrollment. The board approved routine budget resolutions that legally allow temporary interfund transfers and an emergency line of credit if needed; staff said they do not expect to use those measures but presented them “in an abundance of caution.”

Ending: Trustees thanked staff for conservative assumptions and thorough scenario analysis and asked for a revised budget presentation in August after the state adopts its final budget and the district collects more summer registration data.