School board approves 2025–26 first interim budget with positive certification

The Redwood City School Board voted unanimously Dec. 17 to approve the district's 2025–26 first interim budget, certifying the district's financial condition as "positive" while directing staff to develop stabilization measures.

The certification covers the period July 1–Oct. 31 and reflects updated unaudited actuals, the board heard. Rick, the district's chief business officer, told trustees that total projected revenues rose by about $13 million since budget adoption, with an estimated total revenue base of roughly $157 million and an unduplicated pupil count of 60.67% driving supplemental funding.

Trustees and staff said the certification does not mean the budget is structurally balanced. "Positive certification is not the same as being a structurally balanced budget," one trustee said during deliberations, urging the board to center future stabilization proposals on student outcomes and equity.

Rick summarized the key numbers and risks in the presentation, noting that while ending fund balances improved slightly from adoption, the district still shows unidentified fiscal stabilization needs of approximately $5.25 million in 2026–27 and $3.5 million in 2027–28, down from earlier $7.5 million estimates. He said capital outlays included kitchen upgrades paid from Fund 01 (restricted child nutrition funds) and flagged that Fund 21 (the building fund) will decline as HVAC and other facility projects proceed to bidding.

Board discussion focused on whether to keep an internally mandated reserve above the state-mandated minimum. Trustees argued both for the prudence of an extra board reserve and against putting an unfunded extra reserve line into the budget now; several asked the policy committee to clarify whether a board-required additional reserve should remain a binding line item or be framed differently.

A motion to approve the first interim budget "as presented" was moved, seconded and approved by roll call in a unanimous vote. The board will hold a study session on Jan. 13 to develop stabilization recommendations for inclusion in the second interim report in March and to inform budget development for adoption in June.

What happens next: staff will bring detailed stabilization options to the Jan. 13 study session and prepare the second interim report for board consideration in early March.

Sources: presentation and discussion at the Dec. 17 Redwood City School Board meeting; remarks by Rick, chief business officer.