Twin Rivers board adopts first interim budget with positive certification; staff warn of structural deficit

The Twin Rivers Unified Board voted to adopt the district's 2024-25 first interim budget report and issued a positive certification after staff presented the general-fund picture and multiyear projections.

Fiscal staff told trustees that, on a high-level summary, the district is showing $38.4 million more in expenditures than revenues for the current year, with an ending fund balance cited in the presentation as $1,149,000,000. Staff said most of the deficit is the result of one-time spending and carryover use; they identified a projected structural deficit of $2.8 million for 2024-25, and multiyear structural deficits projected at $3.0 million for 2025-26 and $1.5 million for 2026-27 under current assumptions. The presentation noted large restricted carryovers including the Expanded Learning Opportunity Program (ELOP) funds (presented total approximately $75.6 million) that are earmarked for specific purposes.

Trustees asked for more detail on how charter ADA increases are reflected and requested a breakdown by dependent charters; staff said they would include that in the upcoming budget workshop. Staff described other drivers—position-control savings, interest income assumptions, STRS refunds, and one-time department needs—in explaining how the ending fund balance and projections were calculated.

Trustee Baker moved to adopt the first interim report and positive certification; Trustee Bastian seconded and the roll-call vote carried. Staff said the board will return to the budget assumptions and governor's Jan. proposal updates in workshops planned for January or February and will bring the audit for 2023-24 on Jan. 14.