Coachella Valley Unified projects $44.3 million deficit; board approves second interim and staffing reductions

The Coachella Valley Unified School District board on Tuesday approved the district's 2024–25 second interim financial report and multiyear projection, a budget snapshot that projects $373.6 million in revenues, $417.0 million in expenditures and a $44.3 million deficit for the current fiscal year.

The second interim presentation, given by the district finance lead, said the district is filing a “positive certification” — meaning it expects to meet its financial obligations in the current year and the next two years — but also warned officials that the district remains in structural deficit and must implement reductions to maintain required reserves.

The report matters because it sets the district's official financial posture with the county and state and frames decisions about staffing and programs. The presentation showed the district's estimated funded average daily attendance (ADA) at roughly 14,009 students (estimated actual ADA 14,417), current enrollment at about 15,900, and projected one-year deficit spending of $44.3 million.

"At this time, the District, is filing a positive certification that we will meet our financial obligations in the current and in the 2 subsequent years," the presenter said during the presentation. The presenter detailed assumptions behind the budget, including statutory COLA estimates, step-and-column increases for certificated and classified staff, and limits on health and welfare caps.

Key figures presented by the district included: - Estimated revenues: $373,600,000 - Estimated expenditures: $417,000,000 - Projected current-year deficit: $44,300,000 - Stabilization-committed funds: $46.8 million - Reserve for economic uncertainties: $12.5 million - Assigned/restricted funds: $44.9 million

The presenter said some increases labeled "books and supplies" reflect efforts to maximize one-time funds that will expire at year-end and to align spending with LCAP goals. Trustee Valerie Garcia questioned that line item, saying the books-and-supplies figure "seems like a very high number compared to unaudited actuals in the past" and that she would be "very laser focused on" those expenditures.

The presenter replied that staff reviewed position control and vacancies and reallocated one-time monies and planned LCAP spending, leading to the apparent uptick in supplies and contracted services. On the question of layoffs and reductions, the presenter said the approved reductions have been included in the projections and are the reason the district can meet the 3% reserve requirement in the current and subsequent years. "Because we're reducing expenditures, it helps us meet our 3%," the presenter said.

Representatives from the Riverside County Office of Education attended and offered technical comments. Scott Price of RCOE noted that the COLA estimates could shift before the May revision of the governor's budget.

Board members pressed staff on next steps. The presenter described standard follow-up: P2 attendance data (which refines funded ADA), the state May revise, budget development in May or June, estimated actuals, and unaudited actuals in September. The presenter also told the board that if the district does not proceed with the approved reductions, it would not meet reserves in later years.

After the discussion the board voted to approve the 2024–25 second interim report and multiyear projection. The motion carried.

Ending notes: district staff warned the board that even with the reductions the district remains in structural deficit and will need ongoing action and monitoring. The presenter estimated that, if current assumptions hold, an additional roughly $7.5 million in reductions could be required in a later year to maintain reserves.