Anaheim Elementary board approves first interim budget, flags multiyear deficits

The Anaheim Elementary School District Board of Education on Dec. 18 approved its 2024–25 first interim budget and issued a "positive" certification that the district can meet financial obligations for the current and following two years, while warning of multiyear deficit spending.

Assistant Superintendent of Administrative Services Matthew Slusser told the board that the budget snapshot, based on data through Oct. 31, assumes average daily attendance of about 13,644 and an 89% unduplicated pupil percentage. He cited a STRS rate of 19.1% and a PERS rate of about 27.05% and said the district is moving from one-time funds used during the pandemic. "We are deficit spending," Slusser said as he laid out a three-year projection.

The budget shows a 2024–25 gap of roughly $14.7 million (revenues about $311.3 million, expenditures about $326.0 million). Slusser said the district projects a $26.8 million deficit in 2025–26 and a $17.2 million deficit in 2026–27 as one-time COVID-era funds phase out and enrollment declines. Projected ending fund balances decline from about $91.9 million at the start of 2024–25 to an estimated $33.2 million by the end of 2026–27 under current assumptions.

Board members pressed staff for follow-up details on attendance interventions and special-education cost drivers; Slusser said staff would provide additional data in a Friday board update and at future budget-advisory-committee meetings. He also noted state one-time allocations (pre-K planning grant, special-education onetime funds) and a state transportation add-on reimbursement.

The board voted, 5–0, to approve the first interim budget and its positive certification. Trustee Morales moved the motion; Trustee Lopez seconded.

Votes at a glance

- First interim budget (positive certification): approved 5–0 (motion by Morales; second Lopez). - Ratification of SELPA item C1 (individual services agreement with Spectrum Center for one student): approved 5–0. The agreement covers services and transportation for one student in a nonpublic-school setting and is effective 11/18/2024–06/30/2025; the fee shall not exceed $71,221.26. - Tentative agreement with California School Employees Association (CSEA): approved 5–0; fiscal terms include an ongoing 0.54% increase to the district health-benefits cap and a one-time district contribution for 2024–25. - Multiple administrative/fiscal resolutions (Proposition 98 funds to CARB/CEC for zero-emission buses, designation of authorized signatories, custodians of the revolving fund): approved 5–0.

What the budget means

District staff said enrollment is projected to decline from about 13,644 students in 2024–25 to roughly 12,740 by 2026–27, which, combined with rising employer pension costs and the exhaustion of one-time COVID funds, creates downward pressure on reserves. Slusser urged the board to consider the governor's January budget and additional local steps, including the district's budget-advisory-committee work and an upcoming audit, before adopting longer-term adjustments.

Next steps

Staff will continue to refine projections, deliver additional detail on special-education cost drivers and staffing assumptions, and present a second interim report in March that incorporates the Jan. 10 governor’s budget and the results of the January audit.