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Garvey School District certifies positive First Interim report despite enrollment-driven pressures
Summary
The Garvey Board approved a Positive Certification for the 2025-26 First Interim Report, noting declining enrollment and rising pension and health costs and a projected multi-year deficit under current assumptions.
The Garvey School District Board of Education approved the district's 2025-26 First Interim Report and issued a Positive Certification at its Dec. 11 meeting, indicating the district can meet its financial obligations for the current and next two fiscal years.
Chief business staff presented the report and told the board the district remains positively certified but faces fiscal pressure from declining enrollment, statutory cost-of-living adjustments, and rising employee cost rates including STRS and PERS. Presenters said one-time state funds for learning recovery and arts initiatives will be exhausted in future years and that multi-year projections, under current assumptions, show a projected deficit increasing to about $3.68 million in 2028-29.
Board members asked for clarifications about supplemental and concentration LCFF funding, the use of VAPA funds (estimated equipment/repairs $150,000), and whether certain personnel costs can be reassigned to restricted funding. Superintendent Anita Chu and staff said staffing and recruiting remain priorities and that Human Resources is working on filling Head Start vacancies.
On a motion by Maureen Chin, seconded by Paul Duran, the board approved the First Interim Report and certified the district's ability to meet its financial obligations for 2025-26 and the subsequent two years, per Education Code sections 42130 and 42131 (vote 5-0).
The district's presentation emphasized the need for a fiscal stabilization plan, including personnel cost management, targeted reductions, and setting aside committed funds to restore reserve levels.
