Gateway Unified sees planned deficit as district budgets reserves for River Ridge reconfiguration
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Summary
District staff told the board the 2024–25 budget will show a larger deficit after the board agreed to use reserves to fund reconfiguration and campus upgrades at River Ridge; staff outlined revenue increases, one-time grants, and an estimated $1.2 million deficit tied to $2 million in reserve spending.
Gateway Unified School District staff told the board on Monday that the district expects a larger 2024–25 deficit this year because it has budgeted reserves to pay for reconfiguration and upgrades at the River Ridge campus.
In a presentation, the district’s business services staff said the district’s total funds show roughly $46,000,000 when including bond and capital funds; excluding the Capital Fund 2021 (bond fund) the unrestricted portion is smaller than in prior years. Staff said they plan to draw approximately $2,000,000 from reserves for the campus reconfiguration, which contributes to an increased deficit figure reported at roughly $1,200,000. The slide presentation and spoken remarks showed an estimated ending balance for the current year of about $22,200,000 after accounting for designated reserves and the planned drawdown.
Staff described revenue changes that offset some costs: federal grant revenue rose (staff cited approximately $105,000 in additional federal funds tied to entitlements), state revenue increases were noted (about $979,000), and local revenues improved (roughly $629,000 attributed to medical reimbursements and other local recovery). Staff also said LCFF projections and adjustments for average daily attendance (ADA) were applied, with a modest projected ADA change and assumed state COLA of about 2.5% used for multi‑year estimates.
On expenditures, staff said salary and benefits are generally maintained with targeted increases for TK and kindergarten staffing ratios, and some one‑time carryovers from prior years were moved into the current budget for supplies and services. The budget presentation noted an increase in capital outlay for River Ridge to cover parking, portable placement and other facilities work; staff explained some increases reflect items not included in the original budget production (for example, replacing an outdoor freezer and costs associated with reconfiguration).
Board members asked about the length of time reserves would sustain operations; staff referenced the state minimum reserve requirement of 3% and discussed which reserves are restricted versus designated for specific uses. Staff cautioned reliance on one‑time funds and noted that the governor’s January budgeting decisions can affect final outcomes.
The board received the presentation and the discussion closed without a formal roll call vote recorded in the transcript on the budget presentation itself. The next formal budget actions will depend on future agenda items and multi‑year updates.
