Coronado USD certifies second interim budget as 'positive' while flagging reserve declines toward basic aid transition

The Coronado Unified School District Board on March 20 authorized a positive certification of the district’s second interim budget for the period ending Jan. 31, 2025, after Deputy Superintendent Donnie Salamanca described revenue and expenditure changes and long‑term projections.

The board voted 5–0 to certify the second interim report as “positive,” indicating the district projects it can meet its financial obligations for the current and two subsequent fiscal years under current assumptions. Salamanca said the district’s general fund revenue projections for the current year remain largely unchanged; the report incorporates the governor’s proposed budget released in January, though he cautioned that the governor’s proposal could change through the May revision and final state budget in June.

Key numbers presented: an ending fund balance of about $10.6 million for 2024–25, a projected decline to roughly $4.4 million in 2025–26, and a further decline to about $300,000 in 2026–27. Salamanca noted the state requires a 3% minimum reserve (roughly $1.7 million for the district) and that the County Office of Education has raised concerns in prior interim reports; the county will continue to comment until the district presents budget solutions to meet reserve requirements.

Salamanca outlined the district’s strategic plan to “spend down” reserves in a controlled way with the expectation of transitioning to “basic aid” (locally funded) when certain successor‑agency debt is paid off; the district projects roughly $10 million in increased ongoing revenue upon achieving basic‑aid status. He said that some revenues appear as one‑time discretionary block grants in the governor’s proposal (estimated roughly $320 per ADA translating to approximately $800,000 for CUSD) and that federal revenue projections were adjusted downward by about $200,000 due to timing of federal awards.

On expenditures, Salamanca reported lower certificated substitute and timecard costs than budgeted and vacancy savings in classified staffing, producing some savings. He said capital projects include full planned spending on kitchen infrastructure grants this year; the district has contracted for remaining expenses.

Trustees asked about what the 3% reserve would cover: Salamanca said $1.7 million is roughly two weeks of district expenditures. Trustees discussed implementation risks, including state revenue uncertainty, federal funding (roughly 9% of district revenues), and the need to right‑size staffing and expenses during the transition to basic aid. The board approved the positive certification and will submit the interim to the County Office of Education as required. The district invited community members to a Budget Study Committee meeting scheduled for April 23 for more detailed review.