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District projects multiyear deficit, warns of reserve strain and potential federal meal funding cuts
Summary
The district’s business office presented the 2024–25 second interim financial report showing projected multi-year deficit spending, a 3% reserve level and concern that proposed federal cuts to school meal funding could reduce revenue by about $2.6 million.
The San Antonio School District business department presented its 2024–25 second interim financial report at the March 13 board meeting, reporting projected general-fund revenue of about $82.8 million, expenditures of about $87.8 million and an overall reserve at the required 3% level.
Business staff told the board the multiyear projections show deficit spending of roughly $4.9 million across the forecast period and warned that without the board-approved $2 million budget-reduction plan the district’s budget would have been qualified. The presenter said LCFF remains the primary funding source; projected revenue declines include a loss of roughly 61 students from the prior year and state preschool funding reductions tied to the end of COVID-era hold-harmless rules.
Why it matters: the district’s reserve sits at the minimum legally required level, limiting flexibility if enrollment or revenue fall further. The business office described continuing upward pressure from pension (STRS/PERS) rates and rising special-education costs. Board and staff also discussed a federal proposal to cut school-meal funding that, if enacted, could cost the district an estimated $2.6 million.
Supporting details - Report period: July 1, 2024 through Jan. 31, 2025. The report projects LCFF at $57.3 million, federal revenue at $5.3 million, state revenue at $16.4 million and local revenue at $3.8 million. - General fund expenditures projected: $87.8 million; salary and benefits represent 73% of the general fund. - The presenter highlighted a seven-year enrollment decline totaling about 589 students and said special-education general-fund contributions total about $13 million for the year. - The presentation noted the possible U.S. House proposal to cut $12 billion from the federal school meal program, which could jeopardize the community eligibility program (CEP) that currently provides free meals to all students; staff estimated the district impact at about $2.6 million.
Board reaction Board members asked procedural questions about reporting cadence (the district provides budget reports four times a year: June/adopted budget, December first interim, March second interim, September unaudited actuals). Several members expressed resolve to protect students’ meal access if federal funding were cut. One board member urged outreach to congressional representatives in English and Spanish to oppose cuts.
Ending: Staff said development of the 2025–26 budget will continue through spring, with layoff resolutions and public hearings scheduled in April–June and adoption targeted in June.
