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Martinez Unified first interim report shows deficit projections; audit accepted with single finding
Summary
CBO Andy Gannon reported a first interim showing enrollment of about 3,800, funded ADA down 131 and multi-year deficit spending that could exhaust reserves without cuts or revenue gains; the board accepted the audit with one corrected finding.
Martinez Unified’s Chief Business Officer Andy Gannon told the board Dec. 16 that the district’s first interim financial report (July 1–Oct. 31) shows enrollment of roughly 3,800 students but a funded ADA decline that reduced LCFF revenue by about $1.3 million relative to last year’s peak funding.
Gannon said the district faces deficit spending across the multi‑year projection: unrestricted reserve projections fell to approximately $16,000 above the state-required 3% minimum by 2026–27 under current assumptions. He said that special-education contracted services have increased (an estimated roughly $1.2 million additional cost) and that staffing and attendance are primary levers to address the gap. "We are now at the point where we are spending down our reserve to the point where we do not have a lot of room to gap for any unexpected expenses there," he said.
The board discussed attendance incentives and potential reductions, and asked staff to return with options for prioritized reductions and other revenue strategies. After public comment endorsing greater community outreach and attention to special-education staffing, the board voted to accept the first interim report.
The board also accepted the annual audit by Christie White, which issued an unmodified opinion. The auditor included a single finding tied to timing of an intra‑fund transfer related to the building fund; staff corrected the transfer and the finding has been addressed, CBO Gannon said.
