Mount Diablo Unified certifies positive second interim; board commits funds for settlements and software conversion

The Mount Diablo Unified School District Board of Education voted March 19 to give a "positive" certification to its second interim financial report and to designate portions of its general fund as committed fund balance for specified uses.

Superintendent Clark and the district’s fiscal team presented the January 31 projections, which showed the district preserving required reserves while forecasting multi‑year deficit spending. The board voted 4–0 (Trustee McDougall absent) to certify the report as "positive," meaning the district projects it can meet its financial obligations for the current and two subsequent fiscal years.

Fiscal staff described the district’s approach and key figures. The district reported combined general‑fund revenue of roughly $476 million: $356.7 million in unrestricted revenue and about $119.6 million in restricted revenue. The presentation said roughly 92% of unrestricted spending is for salaries and benefits and that federal funding represented about 5% of combined projected revenue. The second interim projected a year‑to‑date deficit (through June 30) of about $33.6 million in 2024‑25, followed by $29.9 million and $22.3 million in the two subsequent years as the district budgets one‑time funds down.

District staff told trustees they were using carryover and one‑time grants (for example, learning recovery/ESSER and other state/federal block grants) to limit layoffs and maintain services in the short term. The presentation also noted assumptions: flat enrollment (29,001), an ADA ratio (attendance) of about 93%, a 2.43% COLA for 2024‑25, and projected pension and benefit rates (STRS 19.1%, PERS rising to 27.4%). Fiscal staff warned that proposed state actions (a governor’s one‑time block grant and a potential TK add‑on) were not included in the adopted multi‑year figures because county guidance advised against inclusion until May revisions were final.

Following the financial presentation, the board approved a resolution designating specific general‑fund amounts as committed funds. The resolution lists the categories and dollar amounts in the packet: legal settlements (approximately $3.5 million, including a Title IX settlement), a financial and HR software conversion (the packet references $2.5 million), and projected deficit spending in the next two out years (the resolution cited roughly $29 million and $22.6 million for two subsequent years). Trustees said the commitment is a continuation of district practice; staff noted the statutory cap on reserves was not in effect for 2024‑25 because of state action, but the board chose to continue the commitment resolution.

Public comment on the budget included remarks from Mount Diablo Education Association Executive Director Dan Reynolds and civic commenters who pointed out that past second‑interim projections have differed substantially from later audited results. Two members of the public urged caution about large increases in contracted services and professional consulting in recent unaudited actuals.

After discussion, Trustee Kount moved and Trustee Mason seconded the motion to approve the district’s positive certification for the second interim report; trustees approved it 4–0. Later the board voted 4–0 to adopt the committed fund balance resolution (motion by Trustee Mason, second by Trustee Kount).