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Martinez Unified interim report shows multi‑year deficits, warns reserves near minimum
Summary
The district’s first interim report projects a $2.8 million deficit this year with planned cuts of about $2 million in later years; special education costs, declining enrollment and expiring block grants are the chief fiscal pressures, leaving reserves only modestly above the statutory minimum.
Chief business official Andy Cannon presented the district’s first interim financial report (period through Oct. 31), telling trustees that declining enrollment and funded ADA combined with rising costs have put the district in a precarious fiscal position.
Cannon said the district projects roughly $2.8 million in deficit spending for the current year; the multiyear plan assumes about $2 million in cuts in 2026‑27 and 2027‑28 but still shows continued deficit spending in out years. He highlighted three major drivers: increased special education costs (including nonpublic school placements and contracted services), declining enrollment and the expiration of one‑time block grants used in prior years.
Cannon told the board that, with the proposed reductions, the district would finish the multiyear projection only about $206,000 above the statutory reserve requirement and that further action may be required to protect solvency. He also said the district expects about $1.3M in LCFF revenue increase this year related to COLA and LCFF growth, but that gains are muted by falling ADA.
On attendance and fiscal impact, staff noted the commonly‑used rule of thumb that an absent student represents roughly $70 in lost per‑day funding; trustees discussed strategies to reduce chronic absenteeism and to advocate for state funding changes (shifting from ADA‑based funding to enrollment‑based funding). The board accepted the first interim report.
