Board hears first interim report: negative certification, $4.8M reduction plan and a tentative teachers' agreement approved

The San Ysidro School District business office presented the 2025–26 first interim financial report and warned trustees the district will submit a negative budget certification to the San Diego County Office of Education.

"The district is unfortunately submitting a negative budget certification to the San Diego County Office of Education," the business department presenter said during the report covering July 1–Oct. 31, 2025. The presentation showed estimated general fund revenues of about $81 million, projected expenditures of about $82.5 million for 2025–26 and multi-year deficits, including a $2.2 million deficit projected in 2026–27 and a structural deficit that could rise to about $4.5 million in later years.

Staff proposed a budget reduction plan to close an estimated $4.8 million shortfall that included a $500,000 spending freeze, limits on overtime, shifting some expenditures from unrestricted to restricted funds (about $1.2 million), hiring freezes and possible layoffs or program reductions. The report called out rising special education costs (estimated near $15.5 million total with about $10.5 million from the general fund) and an enrollment decline of 583 students (a revenue loss trustees estimated at roughly $8 million).

After discussion about the timing of bargaining and budget impacts, the board considered item 16.5, a tentative collective bargaining agreement with the San Ysidro Education Association. Trustees debated tabling the item to allow more negotiation given the budget outlook, but the motion to ratify proceeded and passed; a trustee recorded an abstention on the roll call.

The board also adopted a resolution identifying required budget reductions for 2026–27 and later approved the first interim report, directing staff to finalize the reduction plan and return with specifics at subsequent hearings.