The Moreland School District Board of Trustees on Monday approved the district's 2025'26 first interim budget with a positive certification after a detailed presentation and questions from trustees. District staff said they modeled conservative enrollment projections and built in COLA assumptions; projected unrestricted revenues for 2025'26 are roughly $49 million, with multi-year estimates rising slightly if state COLA holds.

The presentation highlighted a growing special-education "encroachment" on unrestricted funds: staff characterized the total impact on district resources as in the low-to-mid teens of millions (presented as about $13'$14 million in aggregate when accounting for restricted/unrestricted interactions). The district reported an unduplicated pupil percentage near 46 percent and said special-education costs increased by about $500,000 this period, a major driver of the budget pressure.

The report showed a projected deficit-spending position in the unrestricted fund of approximately $3.8 million for the coming year, down from a larger unaudited deficit the previous year. Officials told the board they have implemented steps to reduce the deficit and will present a second interim report in March and a revised budget in June. Staff said they are optimistic about potential one-time state funding tied to Prop 98 and a favorable state revenue picture, but cautioned that ongoing staffing levels could be unsustainable if the one-time funds do not materialize.

Trustees asked technical questions about how enrollment and ADA (average daily attendance) affect funding and what happens if projections are materially off. District staff said funding is attendance-based, so under-attendance reduces revenue rather than producing a retrospective clawback. Trustees pressed staff on the assumptions behind enrollment carry-forward, TK implementation effects and the sensitivity of the projections to COLA changes.

On a motion put to the board, the first interim report was approved with positive certification by voice vote. According to the district, the next steps include monitoring state budget actions, preparing the second interim in March and presenting the main revised budget and adoption options in June.