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CBO certifies ‘positive’ first interim while warning of tightening reserves and federal uncertainties
Summary
The district’s chief business official presented a first interim budget showing a positive three‑year certification, flagged tightening reserves, federal funding uncertainties, COLA projections and programmatic changes, and trustees approved the positive certification by voice vote.
The chief business official presented the Rescue Union School District’s first interim budget and recommended a “positive” certification, meaning the district projects it can meet its financial obligations over the current and two subsequent years while maintaining a board‑adopted 10% reserve.
Key points presented by the CBO: • COLA and multi‑year assumptions: A 2.3% COLA for 2025–26 was used; out‑year projections were slightly reduced due to volatile federal data and a federal shutdown that has delayed some inputs. • Enrollment/ADA: The district has about eight more students than budgeted, which was incorporated into projections for 2026–27 and 2027–28. Funded ADA remains a key driver of revenue. • One‑time funds and carryover: The budget includes $1,100,000 in student support discretionary grant carryover and $71,000 in learning recovery funds; Prop. 28 art/music funding increased by about $78,000. • Federal funding uncertainty: The CBO reduced some federal revenue assumptions in out years (noting Title 1 reductions over time and uncertainty around Title 2/3 following the federal shutdown) and indicated some programs remain budgeted but with conservative revenue assumptions. • Expenditure changes: Certificated staffing netted about $300,000 less than budgeted; classified costs increased by roughly $600,000 (including negotiated settlements and 41 one‑to‑one aides for special education, and increased substitute budgets). Contracted aides are more expensive; nine aide vacancies are being actively recruited. • Reserves: The budget continues to meet a 10% reserve requirement across the three‑year projection but shows a reduced ending fund balance approaching a little under $6 million by the third year out.
Trustees asked questions about COLA projections, the potential shift from ADA to enrollment‑based funding, and the composition of federal pots and SELPA allocations. After discussion, a trustee moved to approve the positive certification for the first interim; the motion was seconded and approved by voice vote.
What’s next: The CBO will present updates at the second interim; the district plans a demographic study to refine enrollment projections and will monitor federal funding clarity and negotiated settlement impacts.
