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East Whittier posts much smaller deficit than projected in unaudited 2024-25 financials
Summary
Board approved the district's unaudited actuals for 2024-25 showing a lower-than-expected drawdown of reserves; trustees were told the district will present budget adjustments in October and a fiscal stabilization plan in December.
The East Whittier City School District Board of Education on Wednesday approved the district's unaudited actual financial statement for the 2024'25 fiscal year, a report that showed the district ended the year with a smaller deficit than had been projected when it adopted its 2025'6 budget in June.
Superintendent Patterson and staff told trustees the district closed its books after the fiscal year and recorded additional restricted state funding and some expenditure savings that reduced the projected deficit. "We actually came in deficit spending $1,500,000 less than we expected to," the superintendent said during the presentation, noting the district also must record a state STRS contribution that does not result in cash the district can spend.
Board members were shown that Local Control Funding Formula (LCFF) revenues remain the district's largest revenue source and that about 81% of expenditures are for employees and benefits. The presentation showed an unrestricted reserve and an ending fund balance that allowed the district to meet the state-required minimum reserve for economic uncertainties.
Why it matters: the unaudited actuals close the prior year and set the starting point for the current-year budget. Trustees were told staff will return in October with recommended budget adjustments and in December with a first interim report and a revised fiscal stabilization plan.
Details: staff credited an additional $1.4 million in expanded learning opportunities program (ELOP) funding reallocated by the state for part of the positive swing. The presentation also explained a roughly $5.3 million accounting entry related to the state's STRS contribution that increases both reported revenues and expenditures but does not provide spendable cash to the district.
Next steps and board action: the board voted to approve the unaudited actuals as presented. Trustees requested follow-up details; one member asked for the exact reserve percentage and dollar amount. Staff replied the district remained close to a 15 percent reserve at year end, roughly $16 million, and reiterated planned budget adjustments that will be brought back to the board.
