The Anaheim Elementary School District Board of Education voted Dec. 10 to adopt its 2025–26 first interim budget, certifying the district can meet its obligations in the current year while staff outlined a multi‑year shortfall that will require program adjustments.

District Chief Business Officer Matthew Slusser told trustees the first interim provides a snapshot as of Oct. 31 and projects the district will "be deficit spending approximately 28,100,000.0" in 2025–26. Slusser said the district began the year with about $91.1 million in reserves and would end with just over $63.0 million under current assumptions, but noted many components of that balance are restricted. He warned the unrestricted fund balance would fall to zero without adjustments and that monthly payroll exceeds $22,000,000.

Why it matters: The board’s certification lets the district file the required interim with the Orange County Department of Education, but staff urged trustees to plan for ongoing reductions and to separate one‑time from ongoing expenses. Slusser presented several specific figures: an approximately $7.8 million increase in revenue since the adopted budget, nearly $9.5 million in added expenditures (largely salaries and benefits), $4.1 million and $4.7 million items of one‑time funding noted in the update, and a recommendation that $6.5 million of previously committed funds be uncommitted to balance the current year.

Details: Slusser said LCFF sources make up roughly 68% of district revenue and noted lottery assumptions at $190 per ADA for unrestricted funds and $82 per ADA for restricted. The board’s multi‑year projection shows a need to reduce ongoing expenditures by about $25.2 million in 2026–27 to certify positively in out years; even after that reduction the district could show continued deficit spending in later years under current forecasts.

Trustees pressed staff on assumptions and next steps. Slusser and the superintendent said the board will file the first interim with OCDE, present the 2024–25 audit in early 2026, and analyze the governor’s January budget for additional context.

The board approved the first interim certification by roll call vote (carried 5–0). The district will now proceed with the recommended follow‑up analysis and options for bringing ongoing expenditures into alignment with recurring revenue.