The Bear Valley Unified School District board unanimously approved its first interim financial report for the 2025–26 fiscal year after a presentation from district staff outlining revenue shifts, planned deficit spending and sustainability risks for several grant-funded positions.

District staff (identified in the record as a presenting staff member) told the board the district maintained a "positive certification" for the first interim and reported adopted enrollment of 2,160 with current ADA about 1,975 (roughly 91.5%), below the adopted- budget ADA projection. The presenter said recent attendance trends could lift ADA nearer to projections later in the year.

The presentation described a mix of revenue changes: a roughly $120,000 shortfall in Title I federal funding compared with the adopted budget, an increase in revenues tied to a CSI grant supporting Chautauqua and other federal program adjustments, and a new state discretionary block grant for student services and professional development of about $600,000. Staff said overall reported revenues rose by approximately 7% from the adopted budget, driven largely by those one-time and restricted sources.

Expenditure increases were attributed to adding staff and programs paid from restricted grants (including CSI and expanded Extended Learning Opportunities program work), additional special education costs and curriculum purchases. The presenter reported an approximately $1,300,000 increase in recurring expenditures and about $1,700,000 in increased nonrecurring expenditures tied to new staff, portable-building costs for North Shore Elementary School and kitchen equipment purchases.

Staff said the district's beginning fund balance after closing the prior year was about $9.3 million and that the projected ending fund balance (including restricted funds) is roughly $7.8 million. Of that, the restricted portion totaled about $5.1 million and the unassigned/unappropriated portion was a little over $1 million. Staff described the current year as planned deficit spending but projected modest surpluses in later years under the district's multiyear assumptions.

On capital and restricted funds, staff outlined Redevelopment Agency (RDA) expenses for architect and inspection fees on stadium restroom and modular-building projects, a lease-leaseback debt-service payment tied to solar and other projects of about $646,000 annually, and forthcoming filings to the Division of the State Architect (DSA) for the modular project. The presenter said portions of RDA/bond obligations are expected to end in 2027 and 2029.

Board members asked for clarifications about bond interest redemption and solar payoff dates; staff said the solar payoff appears to be 2029 and that exact confirmations would be provided. Members also pressed for the number of certificated and classified employees whose salaries are paid from restricted grants; staff said they did not have the headcount on hand but would provide it to the board and explained that positions tied to specific restricted funding sources could be eliminated if those funds were discontinued, with the district attempting to use attrition or other partnerships to avoid layoffs.

Members and union representatives discussed the Community Schools program (CCSPP) and plans to attend the Anaheim Learning Lab to study models that help districts pull additional community resources and grants to sustain roles such as student support specialists and deans. Staff noted ongoing coordination with local partners (including a CYBHI grant partnership) to pursue sustainable funding paths.

After the presentation and Q&A, the board moved to approve the first general financial report. Following a motion and second, the board conducted a roll-call vote; Board members Holt, Eric, Smart and Samuya each voted "Aye," and the chair announced the motion carried unanimously of members present.

The district will provide follow-up details requested by board members (exact solar payoff confirmation, the headcount of grant-funded positions and a multiyear deferred-maintenance/project list) and will incorporate those clarifications into reporting at or before second interim.