Santa Rita Union board accepts second interim budget report showing reduced shortfall but ongoing multi-year risks

The Santa Rita Union School Board received and approved the district’s second interim budget report for 2024–25 after a presentation from district finance staff that showed a reduced unrestricted deficit but continued multi‑year shortfalls.

District staff said the unrestricted deficit projection improved from about $2 million to $1 million, primarily because the district removed an anticipated COVID‑19 leave liability that expired in December and because substitute‑absence costs declined. The district also noted a one‑time distribution from its insurance JPA that increased local income by about $140,000 and higher medical reimbursement tied to learning‑recovery grants.

Presenters highlighted several continuing challenges: declining enrollment (district average daily attendance), ongoing special‑education cost increases, rising benefits and inflation, and uncertainty about the state budget and learning‑recovery funds. Staff said the district is conservatively assuming a $2 million reduction in learning‑recovery funding next year unless the state confirms additional allocations in May.

A district finance presenter said the district currently maintains a 17 percent reserve and is planning cabinet meetings to identify $1 million in cuts to apply toward next year’s budget in order to preserve reserves. In its multi‑year projection the district showed a cumulative deficit that could reach about $6.8 million absent identified reductions and additional state funds.

Trustee Neil Patel, describing the presentation as “sobering,” urged fiscal caution and said the board should “batten down hatches,” calling for conservative spending while the district monitors enrollment and revenue. "I would rather prepare for the worst and hope for the best," Patel said.

The board approved the second interim report on a motion and recorded the vote as 3–0.