The Duarte Unified School District Board of Education approved the district's first interim financial report for the 2025–26 fiscal year by a 4-0 vote, endorsing staff's recommendation to certify the district as "positive" to the Los Angeles County Office of Education despite an overall $9 million deficit.

Assistant Superintendent of Business Services Tiffany Bell presented the report, which covers the July 1–Oct. 31 accounting period. Bell told trustees that adopted-budget assumptions presented in June showed roughly $52 million in revenues and $56 million in expenses, while the first interim projections show about $56 million in revenues against approximately $65 million in expenses. Bell said a $7 million settlement accounted for a large portion of the increase in unrestricted expenses and that, after accounting for that amount, the structural shortfall largely aligns with prior expectations.

"This $7,000,000 will go throughout this whole entire presentation," Bell said while walking trustees through adopted-budget versus first-interim differences, adding later that she would distribute an updated report to correct two slide errors, including the per-student supplemental-calculation figure and an incorrect ending-balance entry.

Bell described the district's reserve posture and cash metrics: the presentation shows a committed leftover (unrestricted ending balance) of about $10 million at first interim, and she noted that one month of payroll is roughly $3.8 million. She also reviewed multi-year projections that show revenues and expenses narrowing in 2026–27 but projected continuing deficits in 2027–28. The presentation emphasized a long-running structural deficit dating back more than a decade and higher unrestricted balances during the COVID period.

Trustees questioned details about past county loans, oversight and recovery. Bell said the district had previously been assigned a fiscal expert during a period of qualified certification and that audits and fiscal analyses helped restore a positive posture in subsequent reporting periods. She confirmed there is interest charged when the district borrows from the Los Angeles County Office of Education.

Board members also asked about revenue streams and enrollment metrics. Bell said the district's unduplicated pupil percentage (UPP) rose to about 67.61 percent and reminded trustees that falling to 55 percent would eliminate supplemental concentration funding (an estimated $6 million). She corrected an earlier slide that showed $15,000 per student, saying the correct supplemental funding figure is $3,559 per eligible student. Bell said developer-fee and bond-rebate funds can be used for classroom projects but not for regular salaries.

Trustees discussed how mandated programs, especially special education, create structural budget pressure. One trustee framed the red numbers as the result of legally mandated but underfunded services rather than discretionary overspending; Bell agreed that special-education funding has not covered costs. The board received a breakdown of general-fund expenditures as presented by staff: teachers about 58.78 percent, CSEA-represented positions about 30.58 percent, certificated management about 9.5 percent, and classified management about 1.59 percent.

After questions, the board approved staff's recommendation to submit a positive certification to the county. The board approved the first interim financial report for the period ending Oct. 31, 2025, with a 4-0 vote (mover: Board member Hasso; second: Board member Holguin). Earlier in the meeting the board had adopted the agenda with Resolution 092526 pulled from the docket by Dr. Medrano.

The district will send an updated interim report with corrected slide figures to trustees and the public, and staff will submit the positive certification to LACOE per the board's action. No further items were taken after the vote and the meeting adjourned.