Moreno Valley Unified budget outlook: May Revision shows 2.3% COLA, state risks and insurance cost pressures

At the May 28 meeting the Board received an update on the state’s May Revision and how it affects the district’s 2025–26 budget.

Susanna Lopez, the district’s chief business official, said the May Revision proposes a fully‑funded cost‑of‑living adjustment of 2.3% for 2025–26 but relies in part on one‑time funding and the rainy‑day reserve. “That rainy day fund or reserve is projected to be 0 at the end of 25‑26,” Lopez said, warning that relying on one‑time funds increases budgetary risk.

Lopez also described proposed deferrals in the May Revision that could delay state payments to districts by a few weeks; she cautioned that deferrals can sometimes last longer and stressed the importance of cash‑flow planning. She briefed trustees on broader fiscal vulnerabilities: declining TK–12 enrollment statewide and in Riverside County, volatility in capital gains affecting state revenues, and potential federal reductions to some competitive grants.

On district costs, Lopez cited an insurance outlook from the JPA (Keenan) projecting property and liability premium increases of roughly 20% and workers’ compensation increases of 5–10%, driven by wildfire claims and medical inflation. She said those figures are being incorporated into the district’s multiyear projections.

Lopez told trustees the business office will present estimated actuals and a recommended 2025–26 budget at the June meetings and may return in July or August with a 45‑day update if the state budget changes materially. The board asked for further detail on federal program funding amounts; Lopez said she would supply a Friday memo with the breakdown.

Provenance: Susanna Lopez presentation and Q&A (SEG 2525–SEG 2810).