Pacifica school board votes to certify first interim budget as positive amid enrollment declines
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
The Pacifica School District board voted unanimously to give a positive certification to its 2025–26 first interim financial report after staff outlined enrollment‑driven revenue losses, higher special‑education and legal costs, and a multiyear plan to eliminate deficit spending.
Pacifica School District trustees voted unanimously to certify the district’s 2025–26 first interim financial report as positive after finance staff presented updated enrollment projections, revenue changes and spending pressures.
“First interim projections indicate that the district will have a positive cash balance and meet its financial obligations for the current year and two subsequent years,” said Stacy Stauffer, interim director of financial services, as she reviewed LCFF revenue, federal and state grant shifts and the district’s multi‑year assumptions.
Stauffer told the board that average daily attendance (ADA) declines have accelerated and are the principal driver of lower state LCFF funding; she showed projected declines in incoming cohorts and warned that assumed cost‑of‑living adjustments (COLA) used in planning could be generous. The first interim report increases total general‑fund revenue modestly to about $41.39 million, while expenditures are projected at roughly $41.93 million, leaving deficit‑reduction work ongoing.
County fiscal adviser Dusty explained the consequences if the district were to certify as “qualified” or “negative,” saying, “If a district self‑certifies as qualified, the county would request a budget stabilization plan; prolonged negative certification could prompt increased county and state oversight.”
Trustees and staff reviewed cost drivers that have pushed spending higher than earlier budget assumptions, including special‑education contracts, legal settlements and difficulty filling some positions (which shifted dollars to contracted services). Stauffer said the district expects to reduce the structural deficit over the next two years through staffing changes, contract adjustments and careful use of one‑time grants.
After discussion, the board approved the positive certification by a 4‑0 vote. The district plans additional budget review during the January community roundtable and will present audited numbers during the February audit report.
Next steps include preparing the second interim in February–March and continuing public engagement around budget priorities, Stauffer said.