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Martinez Unified projects narrowing deficit but still plans cuts; board approves second interim budget report
Summary
The board voted to approve the district’s second interim budget report on March 10. Business officials reported a projected multi-year deficit that narrows under current assumptions but could fall close to the 3% required reserve if negotiated raises are applied.
The Martinez Unified School District board approved its second interim budget report March 10 after a staff presentation that stressed constrained but improving fiscal indicators.
Andy Cannon, the district’s business official, told trustees the district projects a multi-year deficit but called attention to improved enrollment and attendance trends. “We have had 2 years of enrollment growth,” Cannon said, noting that attendance gains had raised funded average daily attendance and revenue assumptions compared with prior years.
Cannon reported the district’s projected deficit spending declining from nearly $5 million to about $1.6 million over the next two fiscal years under current assumptions. He said the district’s reserve stood at roughly 8.77% for the current year and projected to fall to about 3.13% in 2026–27 if tentative agreements include a 1% salary increase: “If all staff receive a 1% salary increase … the reserve in fiscal year 26–27 will actually go down to 3.13.”
Trustees voted to approve the second interim report. A motion to approve was made and the student board member and trustees present voted in favor; the motion passed.
Cannon and Superintendent Helen Rossi said the district is pursuing multiple revenue strategies — billing for certain services, renting unused facilities and pursuing grants — while also preparing for continued negotiations and possible additional reductions. Cannon said the district had identified $2.1 million in reductions the board approved in February but that those adjustments had limited near-term impact on the underlying multi-year deficit.
Board members asked detailed questions about enrollment assumptions, reserve calculations and revenue sources such as state block grants and reimbursements for capital projects. Cannon said federal and state grants and restricted funds mitigate some pressure but do not replace the need to consider longer-term operational reductions if revenues or ADA decline.
The board approved the second interim certification at the meeting; staff said they will continue to monitor state actions during the May revision and report back as negotiations and revenue updates require.
