Board adopts positive certification of first interim budget amid warnings of growing multi‑year deficit
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Summary
Trustees adopted Resolution 09‑25‑26 giving a "positive" certification for the 2025–26 first interim budget but staff reported the district’s projected deficit grew to $5.3 million and special‑education costs will require a $12.8 million general‑fund contribution; trustees approved routine minutes and consent items, including cafeteria lead salary reclassification funded from Fund 13.
The Atascadero Unified School District Board of Trustees voted to adopt Resolution 09‑25‑26, issuing a positive certification of the district’s first interim budget for 2025–26, while staff warned the district faces increasing multi‑year deficit pressures.
Deputy staff presented the first interim report, explaining certification categories and why a positive certification was recommended: the district currently meets the state’s minimum reserve requirements and, under current projections and state funding assumptions, can meet its obligations for the current year and the following two fiscal years.
At the same time, staff detailed financial headwinds: the projected general‑fund deficit widened from a planned $3.6 million at revised budget to a projected $5.3 million at first interim — an increase of $1.7 million — driven largely by increased contracted staffing in special education and rising attorney fees. Staff said the district will contribute roughly $12,800,000 to special education from the general fund this year, representing about 76% of the special‑education operating budget and about 24% of unrestricted general‑fund revenues. Census‑day enrollment was 4,275 students; staff said funded ADA for the prior year was approximately 4,036 and that each percentage point of ADA is roughly worth $500,000 to the district.
Trustees discussed strategies to manage discretionary spending and protect staffing: staff said district leaders are already engaging school leaders about prudent purchasing and seeking restricted categorical funds where appropriate to protect instructional programs.
During the meeting trustees also acted on routine business items. The board approved the minutes of the Nov. 18, 2025 meeting by roll call (all recorded trustees voted yes) and approved the consent agenda (items 15A–15E) after no items were pulled. The board approved a memorandum of understanding to reclassify cafeteria lead salary ranges to remain competitive with the fast‑food industry; the salary increase will be paid from Fund 13, a restricted fund, and "does not impact our general fund deficit spending," staff said.
Votes at a glance: - Minutes (11/18/2025): approved by roll call; recorded trustees voted yes. - Consent agenda (15A–15E): approved by roll call; recorded trustees voted yes. - Memorandum of Understanding (cafeteria lead salary reclassification): approved; funding from Fund 13 (restricted fund), recorded roll call votes in favor. - Resolution 09‑25‑26 (first interim positive certification): adopted by roll call.
Staff said multi‑year projections will be updated at second interim in March and that ongoing work on enrollment, attendance recovery and expense control will be needed to reverse the current trend toward higher deficit spending.
