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District unveils proposed 2025–26 budget showing $44.3M deficit; trustees to adopt June 25
Summary
District finance staff presented the proposed 2025–26 budget, projecting total revenue of about $470 million and expenditures of about $515 million, a $44.3 million deficit for the coming year; staff identified multiyear risks and will return June 25 to adopt the budget after the state’s enacted budget.
Mount Diablo Unified School District staff presented the proposed 2025–26 budget during a public hearing on June 11 and said the document reflects the May Revision assumptions and current enrollment projections.
Key figures presented by Executive Director of Fiscal Services Gustavo Aguilera and Assistant Superintendent Adrian (surname in transcript) included: projected district revenue of approximately $470 million for 2025–26, total proposed expenditures near $515 million, and a projected deficit (net decrease to reserves) of about $44.3 million for the 2025–26 fiscal year. Staff told the board the Local Control Funding Formula (LCFF) remains the primary revenue source and that the district’s projected unrestricted revenue relies on LCFF apportionments.
Staff outlined multiyear assumptions and risks: modest cost‑of‑living adjustments, possible state‑level changes that could add one‑time funding (for example, a proposed Learning Recovery Emergency Block Grant), uncertainty in federal funding, projected increases in special‑education contributions, rising insurance assessments tied to prior liability claims, and utility and benefit cost pressures. Staff said proposed reductions of $2.75 million in 2027–28 had been included in multiyear projections to address longer‑term pressure if state proposals do not materialize.
Enrollment assumptions were updated to reflect expanded transitional kindergarten (TK) registration; the transcript notes about 1,225 pre‑registered TK students at the time of the budget presentation, which helped reduce the projected deficit compared with early projections. Staff also reported P‑2 attendance at about 93% of CBEDS enrollment for the current year.
Staff emphasized the proposed budget is tentative and must be adopted by July 1; staff will return on June 25 to present the adopted budget and will update the document within 45 days of the state enacted budget if material changes occur. Staff also noted the district intends to spend down certain one‑time restricted funds (for learning recovery, educator effectiveness and discretionary materials) to delay any deep reductions to ongoing programs.
Why it matters: The proposed budget determines staffing, programs and reserves the board can maintain next year. Staff warned continued uncertainty at the state and federal level could require future cuts.
What’s next: The board will vote to adopt the budget on June 25; staff will post an updated adopted budget after state action and may return with material revisions in August if the state budget differs from May assumptions.
