Santa Ana Unified projects smaller deficit and wins positive certification in first interim report

Santa Ana Unified School District staff reported an improved fiscal picture at the Dec. 9 board meeting and presented the district's first interim financial report for 2025-26, which the board certified as positive.

Chief Business Officer Ron Hacker and budget lead Jennifer Cisneros told trustees the district still faces multi-year deficits but is in a stronger position than at the adopted budget stage. The presentation credited last year's fiscal stabilization resolution and a rebenching of restricted funds under a "core" resolution for stabilizing unrestricted reserves.

Staff identified several reasons the district's revenue projections increased between adopted budget and first interim: Title I and Title III carryovers, a newly available state block grant (student support and professional development), and an increase in Medi-Cal billing collections. The Legislative Analyst's Office forecast (presented at a CBO symposium) was also cited as context for statewide trends that could affect future years.

Hacker showed that, although the district continues to plan for prudent reductions, the projected unrestricted ending fund balance is higher than at adopted budget and allows the county office to accept a positive certification for the current and two subsequent fiscal years.

Board members posed technical questions about enrollment declines, the LCFF hold-harmless provisions that temporarily mitigate funding losses from falling attendance, and the timing and reliability of Medi-Cal reimbursements. Staff said further analysis and public budget town halls are planned, and they committed to continuing budget-committee review of supplies and services, capital projects and potential efficiencies.

The board voted to certify the first interim report, a procedural step that informs the county office of education and public stakeholders about the district's midyear fiscal position.