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Board adopts proposed 2025–26 budget, asks staff to identify reductions if state funds don’t materialize
Summary
On June 25 the board adopted the district’s proposed 2025–26 budget after debate about multi‑year deficits; trustees also passed a resolution requiring staff to prepare a detailed plan of revenue enhancements or budget reductions if the state budget proposals are not enacted.
The Mount Diablo Unified School District Board of Education adopted the proposed 2025–26 budget June 25 and separately approved a resolution directing staff to identify revenue enhancements or spending reductions to protect reserves if anticipated state actions do not materialize.
Lede details: The board voted to adopt the proposed budget for 2025–26 after presentations from district fiscal staff. The adoption vote was recorded with a 3-1-1 result (three yes, one no, one abstention), and a subsequent resolution (Resolution 24/25-77) requiring identification and planning for revenue enhancements or reductions was adopted 4-0.
Why it matters: District presenters said the 2025–26 proposed revenue is about $470.7 million, of which LCFF (Local Control Funding Formula) funds are projected at about $353 million (75%). Projected expenditures total roughly $515 million; the budget materials indicate $67 million of the proposed expenditures are tied directly to LCAP goals and actions. Trustees questioned multi‑year projections showing continuing deficit spending and urged caution.
What fiscal staff said: Gustavo Aguilera, executive director of fiscal services, presented key figures: total projected revenue of approximately $470.7 million for 2025–26, LCFF revenue of about $353.0 million, and total proposed expenditures of about $515.0 million; Aguilera said $67.0 million is directly tied to LCAP goals. The district also explained that some prior-year carryover and one-time funds had been spent in 2024–25 and that multi‑year assumptions produce deficit figures in the second and third years of the forecast.
Board questions and debate: Trustee McDougall (identified in discussion as raising concerns about timing earlier) and another trustee pressed staff on the multi‑year deficit projections: one trustee described average annual deficit figures that, if unchanged, would reduce the current fund balance substantially over several years and emphasized the difficulty boards face when state funding changes. District staff said the multi‑year numbers reflect assumptions at the time of the presentation and that proposed state budget items still under negotiation could materially change the picture once enacted and signed by the governor.
Resolution requiring planning: The board adopted Resolution 24/25-77, which requires staff to identify a plan for revenue enhancements or reductions and to submit detail with the district’s 2025–26 second interim report. Staff told trustees the resolution spreads potential net savings across two years and represents a contingency if state proposals are not enacted.
Next steps: Staff will continue to monitor enacted state budget actions and will provide a detailed plan of reductions or revenue enhancements with the second interim fiscal report.
