Inglewood Unified recommends 'positive' budget certification while warning of multiyear deficits; board told to find $6.7M in reductions

Assistant Superintendent and Chief Business Official Rafael Guzman told the Inglewood Unified School District Board on March 11 that administration recommends a “positive” certification for the district’s 2025–26 second interim report, while warning that multiyear deficit spending requires continued action.

Guzman presented actuals through Jan. 31, 2026, and described the main drivers behind the update: a lower-than-anticipated state cost-of-living adjustment (COLA) supplied in the governor’s budget and a projected decline in enrollment and average daily attendance (ADA). “When we did the first interim report a few months ago … COLA was higher. Since that changed, our revenue is lower,” Guzman said, explaining why LCFF revenue projections fell.

Guzman outlined the district’s enrollment assumptions (about 5,973 now projected to decline toward 5,740 and 5,580 in subsequent years) and showed how those headcounts feed ADA and LCFF revenue estimates. He reported an unrestricted ending fund balance of about $69.4 million and restricted balances around $39.1 million for a total near $108.5 million, roughly $1 million lower than first-interim projections.

To address the structural gap, administration presented a fiscal stabilization plan that identifies $6.7 million in reductions for 2026–27 and modeled three multiyear scenarios. Scenario A (no reductions) produced materially larger deficits; scenario B (the current plan) showed smaller but continuing deficit spending; and scenario C modeled finding an additional $5 million in cuts in 2027–28 and produced a materially stronger reserve trajectory. “If we continue the plan … we will continue to be successful,” Guzman said, while adding that further reductions or revenue increases would improve long-term solvency.

Board members asked for more detail on where reductions would fall and how to reduce reliance on contracted services. Trustee Brandon Myers and others urged the district to accelerate hiring for in-house services (drivers, trades) to reduce high service costs and suggested targeting outside consultants. Guzman acknowledged the approach, noting targeted hiring (including newly created lead-trades positions) and recent hires for transportation.

Guzman closed by laying out next steps: administration will return with estimated actuals and a proposed adopted budget on June 25, preceded by a public hearing. He also urged monitoring enrollment and ADA closely and continuing to refine the fiscal stabilization plan.

Why it matters: The report shows the district remains cash-positive in the near term and can certify now, but trustees were warned that without ongoing reductions and revenue strategies the district will face persistent multiyear deficit pressures. The board directed staff to continue refining the plan and to present more specific targets and timelines ahead of the June adoption.

Sources and provenance: Guzman’s presentation and figures to the board (second interim report, Jan. 31, 2026 actuals). The presentation referenced Ed. Code requirements for interim reporting and LCFF/COLA guidance from the governor’s budget.

Next step: Administration will bring estimated actuals and the adopted budget to the board on June 25, after a public hearing.