Central Unified projects shortfall in year three but files positive second interim certification

Central Unified’s fiscal director presented the district’s 2025–26 second interim budget on March 10 and the board voted to accept the report with a positive certification.

Patricia McKinley told trustees the district’s current enrollment is 16,008 with projected flat growth and a daily average attendance of 91.84%. Using the district’s multi‑year projection, the report shows an ending fund balance of roughly $39,000,000 that allows the district to maintain the board’s 5% reserve in the near term, but the projection does not meet the 5% reserve requirement in year three under current assumptions.

McKinley told the board the district will spend about $196,500,000 of unrestricted funds this year on employee salaries and benefits, more than 80% of total unrestricted expenditures. She repeated administration’s caution about political and fiscal uncertainty in California and said the district will quantify potential impacts as the state budget develops.

Trustees asked for a clearer, lay‑friendly presentation of the budget so the public can see how funds flow to sites, and McKinley said the detailed numbers are embedded in the packet and staff will prepare a more digestible version. Vice President Sellers moved to approve the second interim; Trustee Singh seconded and the motion carried unanimously.

The board’s approval is a procedural requirement that also signals the district can meet its financial obligations for the current year and the next two years based on the assumptions in the report. Administration will bring additional analyses at future interims, including the impact of retirements and ongoing cost pressures.