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Alisal Union presents preliminary 2025–26 budget projecting $59.2 million ending balance, warns of multiyear deficits
Summary
District staff presented a draft 2025–26 budget that projects $142.9 million in revenue and a $59.2 million ending general-fund balance, while forecasting declining enrollment and multiyear deficits that rely on reserves to remain solvent.
Alisal Union School District officials presented a preliminary 2025–26 budget Wednesday that projects $142.9 million in revenue and a projected ending general fund balance of $59.2 million for 2025–26, while warning that enrollment declines and planned expenditures create structural deficits in later years.
The presentation was made by Elaine Mendoza, director of physical services, and Bridal Bazzi, associate superintendent of business services. Mendoza said the hearing is required as part of the state timeline: “we have to present information today at least 2 weeks before the budget can be approved by board of trustees.”
District staff said the estimated actuals for the just-ended 2024–25 fiscal year showed an ending fund balance of roughly $99.7 million (combined restricted and unrestricted). For 2025–26 the budget assumes: enrollment of 7,097 students; average daily attendance (ADA) of 6,860 (96.66%); a cost-of-living adjustment (COLA) of 2.3%; STRS employer contributions at about 19.10%; and PERS contributions at about 26.81%. Staff identified the state lottery at roughly $249 per pupil (about $1.7 million) and said federal revenues are flat in current projections.
Mendoza and Bazzi walked trustees through multiyear projections showing declining enrollment (to about 6,872 in 2026–27 and 6,764 in 2027–28) and resulting operating deficits in those later years. Bazzi told the board that the district plans to rely on the district’s fund balance to maintain operations while the state COLA projections hold: “For now, it looks promising based on the economic reports that we get ... we should be okay in the next 5 to 6 years,” Bazzi said, while cautioning that the projections depend on state budget outcomes and economic conditions.
Board members asked how categorical and lottery funds are treated. Staff said most lottery money is designated for instructional materials and much of it is categorical (restricted), though a portion is shown as unrestricted and may be used for broader instructional purposes. Staff also noted that some categorical funds—such as certain federal Title I and state program monies—carry time limits and can be lost if not spent within required periods.
Next steps: staff said the district expects to return for formal adoption of the 2025–26 budget and the Local Control and Accountability Plan (LCAP) on June 25, pending the state budget adoption scheduled for June 30.
The budget presentation and questions were part of a regular board meeting; trustees did not vote on adoption of the 2025–26 budget at this session.
