Board certifies district second‑interim budget; projects multiyear deficit while preserving reserves

The Hueneme Elementary School District governing board voted to approve a positive certification of the district’s 2024–25 second interim budget and adopted Resolution B‑24‑25‑O9, after hearing a staff presentation on revenue, expenditures and a three‑year projection.

Chief Financial staff reported that actuals were recorded through Jan. 31, 2025, and that the district had revised revenue and expenditure estimates ahead of year‑end. The presentation noted an approximate ending general fund balance of $44,132,533 and described that the district anticipates using some one‑time funds and committed reserves to smooth near‑term deficits. The staff presentation said the district was recording nearly $15 million in deficit spending for the current fiscal year and highlighted that a portion of the ending fund balance is assigned for upcoming projects and one‑time activities.

The report summarized assumptions driving the multi‑year projection: a projected LCFF COLA reduction to about 2.43% in the next fiscal year, declining enrollment and average daily attendance (ADA) concerns, increases in CalPERS contribution rates, and inflationary pressures on operations. Staff told the board that the district is tracking several one‑time funding opportunities, such as the California Community Schools Partnership Program grant and a proposed state discretionary block grant for student supports and professional development.

During the discussion board members asked about the structure of assigned, committed and restricted funds and about the size of the ending balance expressed as a percentage of the operating budget. Staff said the ending balance represented roughly 29% of the operating budget and noted the district was monitoring enrollment, attendance and expenditure trends closely to determine whether future staffing or program adjustments would be necessary.

The board approved the certification and the resolution in a roll‑call vote.

Speakers for the item included the district chief business official and board members; the action carried on a recorded roll call.