Mountain View‑Whisman trustees adopt second interim budget, warn of multi‑year structural deficit
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Summary
Trustees unanimously approved the district's 2025–26 second interim budget report after a presentation from the chief business officer that projected multi‑year deficits and stressed the need for further reductions and strategic use of one‑time reserves.
Trustees on the Mountain View‑Whisman School District Board of Trustees voted unanimously March 19 to approve the district's 2025–26 second interim budget report, after Chief Business Officer Dr. Westover and Director Nadia Pongo outlined a multi‑year projection showing growing structural deficits if current assumptions hold.
Dr. Westover told the board the second interim reflects activity through Jan. 31 and incorporates the reductions already approved by the board. "Our financial outlook is looking more positive this year in part due to careful spending decisions," he said, while cautioning that ongoing expenses still outpace revenue growth driven by assessed value (AV). The presentation noted AV growth near 1.72% in March and projected that the district would need about 15.67% AV growth by 2027–28 to reach budget neutrality under current assumptions — a figure the staff said has not been historically achieved.
The report included a multi‑year projection prepared by Director Pongo that showed a projected net decrease of about $1.1 million in the current year, $6.6 million in the second year and roughly $12.2 million in the third year if no additional revenue or major changes occur. Pongo said the projection assumes a 4% salary increase this year plus stepping columns in out years and does not count potential one‑time discretionary state grants until they are confirmed.
Trustees focused questions on expense drivers and the district's reserve strategy. Dr. Westover said the district is treating reserves as one‑time funds and recommended using them for one‑time investments (facilities, targeted program investments) rather than ongoing salaries. He also listed utilities, insurance and special education as areas driving expense growth. "Using reserves for ongoing costs creates a structural deficit," he said.
Board members and staff discussed possible upside scenarios, including a discretionary block grant and higher per‑student ELO funding proposed by the governor, which the presentation modeled for planning purposes but said could not be counted on until finalized. Trustees asked for continuing updates and for budget choices to be mapped to the strategic priorities outlined in the Orenda review.
Trustee Bridal Lambert moved to adopt the second interim report; the motion was seconded and passed unanimously. Staff said it will return to the board in June for final budget adoption and continue work on LCAP development.
What happens next: staff will continue developing the 2026–27 budget and return in June for adoption; trustees and staff said they plan further discussions on structural changes to limit ongoing expenditure growth and to align budget priorities with district goals.
