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Azusa Unified projects $7.5 million structural deficit for 2024–25 in second interim report
Summary
District staff presented the second interim report showing enrollment, revenue, and multi-year projections; the report projects a structural deficit and requests a positive certification.
Azusa Unified School District staff presented and the board approved the district’s 2024–25 second interim financial report on March 11, showing an enrolled headcount of 6,030 students and multi-year projections that include a structural deficit.
Chief business staff (presenter identified in the transcript as "Miss Jamal") told the board the second interim presents actuals through Jan. 31 and projections through June 30. The report certified 6,030 students for 2024–25, about 290 fewer than the prior fiscal year. Staff said the COLA projection for 2025–26 decreased from 2.93% at first interim to 2.43%, which reduces projected revenue by approximately $450,000 compared with earlier projections.
The district’s revenue projection increased from $147.8 million at first interim to $151.3 million at second interim, driven by updated collections and carryovers. On the expenditure side, planned spending fell from a first-interim projection of $163.4 million to $158.8 million at second interim as vacant positions remained unfilled and one-time contract services declined.
The multi-year projection shows a structural deficit of about $7.5 million for the current year and $4.4 million in the subsequent year; staff explained that use of prior-year, one-time funds to meet ongoing obligations creates the appearance of a structural deficit per state accounting conventions. The district’s unrestricted ending fund balance is largely committed to programmatic priorities (the presenter said committed funds make up about 78.7% of the unrestricted balance), and staff recommended the board file a positive certification as required by Education Code.
During questions, board members asked about a $3 million increase in local revenue (staff cited donation account carryovers and interest earned) and requested clearer breakout lines to show unrestricted vs. restricted balances. The presenter said committed funds are unrestricted but earmarked for LCAP and program continuity when one-time funds expire.
The board voted to accept the second interim and to file a positive certification. The transcript records motion, second, and a roll-call "yes" from the student board member and a final "Motion passes."
