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District financial outlook: Washington Unified says no deep cuts needed this year but longer‑term caution remains
Summary
Washington Unified staff told the board that closing 2023–24 books showed revenue up and expenses down, removing the need for significant cuts this year, but projections indicate reserve pressure in 2027–28 and staff flagged one‑time COVID funding expirations and grant‑funded positions requiring further review.
District finance staff presented an update on the Washington Unified budget stabilization plan, telling the board that updated close‑out figures from 2023–24 showed higher revenue and lower expenses than projected and that significant budget cuts are not required for the current year.
Director of Fiscal Services Billy Duba and Monique Stovall reviewed recent steps: the district adopted the 2023–24 budget in June and later performed a closeout that improved the near‑term picture; staff engaged a demographer to assess enrollment and capacity; and they are examining school boundaries and staffing configurations. Stovall said the district maintains a board policy 6% reserve for economic uncertainties (3 percentage points above the state minimum) and currently meets that target through the next two fiscal years, but projections for fiscal years 2027–28 indicate the district may fall below the 6% reserve without further adjustments.
Staff reminded the board that COVID‑19 funds expired Sept. 30, 2024, and noted that non‑personnel COVID funding has ended or been replaced by other sources such as LCAP or the Arts/Music/Instructional Materials Block Grant; the presentation identified 23 positions previously funded by COVID dollars, with 3 positions now funded by the general fund, one by general fund/LCAP and 19 by the block grant through June 2026.
Stovall said the district will analyze whether to offer an early retirement incentive and will bring the first interim budget report to the board in December. She said the governor's proposed budget will be released in January and that staff plan a February budget study session and a March second interim report that will determine whether a Budget Advisory Committee is needed.
During board Q&A members asked whether salary increases proposed in upcoming negotiations were included in the projections. Staff confirmed their current projections exclude any pay increases; trustees warned that any future salary pickup could erode reserves given compounding accrual effects. Trustees also asked for detail on the 19 positions funded by the Arts/Music block grant; staff said those are primarily paraeducator positions and that the grant provides some flexibility for operational costs but expires in June 2026.
The presentation and discussion focused on conservative fiscal planning, the reliance on federal and one‑time funds for some services, and the need for continued monitoring and adjustments over the next three years.
