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Washington Unified board approves second‑interim budget showing multiyear deficit spending, $16.25M moved to stabilization fund
Summary
The board certified a "positive" second‑interim report and approved a package of adjustments that leaves the district projecting deficit spending in future years while preserving a board‑required 6% general‑fund reserve by moving $16.25 million to a Fund 17 budget‑stabilization account.
The Washington Unified School District board voted to approve the district's second‑interim financial report on March 27, affirming the district's certification as "positive" for the current year while acknowledging deficit spending over the multi‑year projection.
The budget presentation from Chief Business Officer Monique Stovall and Fiscal Director Billy Duba showed an improved ending general‑fund balance for 2024–25 but continued structural deficits in subsequent years. "We are certifying this budget as positive," Stovall said during the presentation, noting the designation reflects staff's projection that the district can meet obligations through the current fiscal year and the next two years under current assumptions.
Stovall and Duba told the board that updated enrollment projections from a February demographic study raised expected ADA and LCFF revenue slightly, but continuing obligations and grant expirations mean the district is still spending more than it collects. Duba detailed adjustments to payroll, benefits, supplies and services and reported an unrestricted‑fund ending balance of about $16.5 million as of Jan. 31, 2025. The district also moved $16.25 million into Fund 17, the board's designated stabilization account.
The staff forecast shows the district remaining above the board's required 6% reserve in all years shown under current assumptions, but trustees were warned that staffing increases, contract settlements or other cost changes could require use of the stabilization funds in coming years.
Trustees asked for clearer visuals and more detail on the composition of the ending fund balance. "If conditions change, the outlook changes," Duba said, urging continued budget refinement and engagement with advisory groups. Trustees also asked staff to provide clearer breakout sheets showing the items that drive projected deficits and to bring a larger, easy‑to‑read version of the multi‑year projection to future budget discussions.
The board's approval was moved by Trustee Wong and seconded by Vice President Coffey; all present voted in favor.
In coming weeks staff said they will convene a budget advisory process with labor partners and other stakeholders, and will return in April and again during budget season with additional scenarios and recommended actions to address the projected structural gap.
The vote certifies the second‑interim report as positive and authorizes staff to continue budget development for 2025–26 and to incorporate the governor's upcoming budget revision and other updated revenue estimates.
