San Jacinto board hears midyear budget reality, files negative interim and schedules layoffs; FCMAT-style fiscal review launched

The San Jacinto School District governing board received a detailed midyear budget update March 3 that laid out a worsening fiscal picture and a timeline for restoring a positive budget certification.

District finance staff told the board the district has lost roughly 583 students over recent years—about $9 million in ongoing revenue—and now faces rising special-education costs and the expiration of one-time federal/state discretionary funds. ‘‘We have implemented a budget reduction plan for 26/27 in the amount of $4,800,000,’’ district staff said during the presentation.

Staff reported that special education spending is currently estimated at $15.5 million, with federal funding covering a far smaller share locally than the 40% Congress initially envisioned; the district said its federal special-education funding covers about 8% of those costs. Officials also noted a one-time discretionary block grant of about $1.6 million will be fully expended by June 2026, reducing short-term flexibility.

Because of those and other pressures, the district filed a negative first-interim budget certification. To help diagnose the situation, the board authorized a state-style fiscal health risk analysis—a process staff described as a more-in-depth FCMAT review—covering roughly 20 categories and more than 100 questions, with interviews scheduled March 3–5.

Board staff outlined a restoration timeline: layoff resolutions would be presented in April and May, the third interim is scheduled May 14 and the district aims to present a proposed and adopted budget in June. Staff said the district expects the 26/27 first interim (December 2026) to be a positive certification if planned actions and state revenue changes occur.

The board approved multiple actions tied to the budget process on March 3, including placing layoff notices on the calendar and adopting policy- and program-related items intended to reduce costs. A motion to authorize the district to notify temporary certificated employees of intent to release at the close of the 2025–26 school year passed with recorded ayes; a subsequent agenda item authorized reductions or discontinuations of particular services.

Trustees and members of the public repeatedly emphasized the board’s stated priority of saving as many jobs as possible. Board members asked staff to work with union leadership and explore every option to protect classroom positions while pursuing administrative savings. "The goal is to save every single job," a board member said during remarks.

The district also noted potential federal funding changes that could affect revenues, including possible changes to the Community Eligibility Provision and other federal programs. Staff emphasized many variables remain unknown until the May revise and federal decisions are clearer.

The board moved into other budget-related actions at the meeting and recessed to closed session to work through specified labor, personnel and legal items.

Votes at a glance (selected budget and related items): - Approved filing a negative first-interim certification (motion recorded during budget presentation; outcome: filed/acknowledged). - Approved a $4.8 million budget reduction plan for 2026–27 (motion on the record; outcome: approved). - Authorized staff to notify temporary certificated employees of intent to release at the close of 2025–26 (motion and recorded ayes; outcome: approved). - Authorized reductions/discontinuations of specified services (motion passed; outcome: approved).

What’s next: staff said layoff resolutions will return in April and May for final action and the district will present proposed and adopted budgets in June; the state-style fiscal health analysis will continue and produce findings for board consideration.