Board adopts positive second‑interim certification and approves workforce reductions

The Mount Diablo Unified School District board voted unanimously on March 11 to approve the district's second interim financial report and to certify the report as "positive," while also approving resolutions to reduce certificated and classified positions tied to budget projections.

District finance staff presented the second interim—an updated multiyear projection using data through Jan. 31—and outlined assumptions for enrollment, LCFF revenue, COLA, and expenditure changes. Brenda Barbera, the district's director of budget accounting and fiscal compliance, summarized major variances from the first interim, noting about $3 million of increased unrestricted revenue (including LCFF adjustments) and around $9.5 million of overall expenditure decreases driven largely by timing and one‑time restricted spending.

Brenda Barbera said the district is projecting a combined revenue figure in the neighborhood of $492.1 million and flagged that salaries and benefits represent roughly 93% of the unrestricted budget. "The main takeaway is that salary and benefits comprise approximately 93% of the district's unrestricted expenditures," she told the board.

District leadership said multiyear projections do show planned deficit spending as one‑time funds are used down: staff said unrestricted deficit spending projections in the near term total tens of millions of dollars driven by use of expiring one‑time grants and ongoing salary and benefits commitments. The finance team recommended a "positive" certification because the district projects meeting the state's 3% minimum reserve requirement in the current and two subsequent years.

After questions from trustees about out‑year assumptions and the fourth‑year outlook, a trustee moved to approve the second interim report; the motion was seconded and passed 5‑0.

Later the board heard from district counsel about two resolutions to reduce staff: one to reduce certificated positions (14.5 FTE) and a second to reduce classified positions (3.46875 FTE) for lack of work or lack of funds. The board moved and passed both resolutions, each by a 5‑0 vote. Trustees said the reductions reflect multiyear financial planning and use of one‑time funds rather than a sudden fiscal emergency; board members also urged staff to continue to monitor revenues, attendance/ADA and state actions that could alter the projections.

The board approved other consent items and policy updates later in the meeting and adjourned. Staff said further budget development will continue through May and June, when the district expects May revise figures and will bring a proposed adopted budget back to the board.