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Board adopts second interim budget with positive certification; staff warns of one-time funding reliance
Summary
Twin Rivers Unified—s board adopted the 2024-25 second interim report with a positive certification after finance staff presented that the district will use one-time funds to cover a $37.2 million gap this year but projects a smaller structural deficit in later years as one-time block grants run down.
District finance staff presented the second interim general fund report through Jan. 31, 2025, and the board voted to adopt the report with a positive certification.
Finance staff told the board the district is projecting to "spend more than we are bringing in by $37,200,000," but emphasized most of that difference reflects one-time funds and restricted program spending. The presentation detailed an estimated beginning fund balance of about $188 million and an ending balance of roughly $151 million for the current year when one-time funds are included. Restricted funds (federal and state categorical programs and block grants) account for a large portion of the ending balance, and the district—s board-policy economic uncertainty reserve was outlined at approximately $46 million (about 7.61% of total expenditures) compared with a board target of 10%.
Staff walked trustees through revenue drivers (LCFF base of $374 million, state and federal grants) and expenditure trends (salary and benefits as the largest components), and reviewed multi-year projections that showed a structural deficit of about $4.7 million in 2025-26 once one-time funds are removed. Staff cautioned that certain one-time block grants will expire in coming years and that the district will need to plan for replacing investments currently funded with one-time sources.
Trustees asked clarifying questions about the block grants, capital outlay projects that may be reduced by $5 million, and whether teacher offsets paid from one-time funds create future obligations. Staff responded that many of the currently funded positions or service agreements are planned as one-time-funded and that the district will continue to monitor negotiations with bargaining units and state budget developments.
After discussion the board moved, seconded and approved the second interim report and its positive certification by roll-call vote.
What happens next: Staff will bring updates with the state May Revision and the 2025-26 budget adoption process; trustees were reminded that long-term sustainability will require aligning ongoing expenditures with ongoing revenue as block grant funds expire.
