The Los Altos School District Board of Trustees unanimously approved the district’s 2025–26 first interim financial report at its Dec. 15 meeting after Assistant Superintendent staff presented updated revenue and expenditure projections.

The presentation reported secured property‑tax growth of about 5.04 percent since budget adoption and a parcel tax that currently generates about $10.6 million, with a projected increase tied to the parcel tax COLA. Staff also reported receipt of roughly $750,000 in a one‑time state block grant this fiscal year. Offsetting those revenues are mounting expenses: retiree health and welfare costs exceed $1 million annually, special‑education expenditures have risen (noted as an increase from $17.6M to $18.3M in total expenses for special education), and the district’s annual transfer to a charter school grew by about $894,000.

Assistant Superintendent presented multiyear projections showing a current‑year fund‑balance decline of approximately $3.6 million, with continued pressure in the next two out years. Staff emphasized that the parcel tax and local property taxes make the district heavily locally funded and stressed the importance of reserves for cash flow and unforeseen events. ‘‘Reserves are really for cash flow…[they] are for everyday operations that we rely on,’’ the presenter said during the slideshow.

Board members questioned specific line items, including the increase in transfers to charter schools and whether recent enrollment shifts affect staffing assumptions. A parent public commenter earlier in the meeting raised concerns about special‑education supports at Santa Rita, which trustees asked staff to address as part of budget monitoring.

The board’s unanimous roll‑call vote certified the first interim report and preserved the district’s positive certification for the current and subsequent two years.

Next steps: staff will continue monitoring cash flow, finalize any remaining grant reimbursements and return updated numbers at the second interim report.