Board certifies first interim budget as positive, shifts $16.25M to stabilization fund and approves multiple construction and contract items

Washington Unified School District trustees on Dec. 17 certified the district’s 2024–25 first interim financial report as a "positive" certification, approved transfers to restricted funds including a $16.25 million contribution to a budget-stabilization reserve (Fund 17), and approved a series of construction contracts and change orders.

Chief Business Officer Monique Stovall and Director of Fiscal Services Billy Duba presented the report, which covers the period ending Oct. 31, 2024, and was due to the county Dec. 15. Duba said revenue projections improved slightly — driven by higher interest earnings and a modest increase in enrollment — and staff reduced projected expenses from about $86.7 million to $81.6 million based on year-to-date actuals and historical trends. The report showed a preliminary operating surplus of about $19.5 million before transfers.

Stovall explained the budget transfers: roughly $33 million in "total other sources and uses" will move from the unrestricted general fund to restricted accounts to cover special education, restricted routine maintenance and other program needs; $16.25 million of that will be placed in Fund 17 as a board-designated budget-stabilization reserve. After transfers, staff projected an ending general-fund balance of approximately $15.9 million for June 2025. Staff cautioned that projections are preliminary and will be refined after the governor’s January budget release.

Trustees pressed for detail on the $5 million expense reduction and multi-year projections. Trustee Hunt asked what drove the large reduction in books and supplies; Stovall said the line covers a wide range of items (from pens to technology) and site and department managers had adjusted estimated needs based on current inventories. Trustees highlighted that the district will still face deficit spending in later years (notably 2026–27 and 2027–28) unless structural changes are made; staff said the stabilization fund is intended to smooth near-term volatility while the district evaluates longer-term solutions.

The board unanimously approved the positive certification and the interim report.

The meeting also included approval of construction and facilities actions. The board awarded a contract to Switzersstock (doing business as ProBuilders) for ADA upgrades at Yolo High School to remedy noncompliant restrooms and other accessibility needs; facilities staff said the lowest bidder was selected and the team will meet with the contractor to finalize schedule and relocation plans (including use of a bathroom trailer if work occurs during school).

Change orders for River City High School’s asphalt replacement (Broco Constructors Inc.) were approved to address unforeseen field conditions (irrigation relocations and a new concrete walkway). The board approved the final change order and notice of completion for the Westfield Village School modernization project, which was completed July 30, 2024, with final construction costs of $33,389,727.34 — $142,022.64 under budget; staff said the underrun will be returned to the Measure Z program budget.

Other approved routine action items included a certificated variable-term waiver for a staff member (HR), approval of an Odyssey nonpublic-school contract required under IDEA for a student whose educational needs require a nonpublic placement, and authorization for a modest set of out-of-state conference attendances funded from site or Title I budgets. The board also authorized reimbursements to trustee employers for substitute or administrative costs associated with trustee release time under Education Code §44987.3.

Trustees scheduled a budget study session in February and asked staff to present more detailed scenarios for closing multi-year gaps and for reviewing one-time versus ongoing expenditures at that session.