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Board adopts precautionary classified‑services resolution as interim report shows multi‑year deficits
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Summary
The El Monte City School District board approved Resolution 25–26–32 to begin reduction‑in‑classified‑services proceedings as administrators reported a positive second interim certification but projected multi‑year general‑fund deficits driven by declining enrollment and expiring one‑time revenues; the board also reviewed a $35 million Measure ME bond sale and $32 million in refinancing that produced voter savings.
The El Monte City School District Board of Education on March 9 approved a precautionary resolution to begin proceedings on reducing classified services while accepting a positive second interim financial certification and reviewing recent bond activity.
Board members voted 4–0 to adopt Resolution 25–26–32, a step the district described as necessary to meet legal timelines for potential layoffs amid fiscal uncertainty and Head Start program changes. The board discussed the requirement to issue March 15 notices if reductions proceed and emphasized efforts to seek alternatives that would preserve positions.
The decision followed public comments from classified employees who urged the board to exhaust alternatives before cutting positions. Maria Morgan, president of CSEA Chapter 10, told the board that classified staff ‘‘are essential to the district’’ and asked trustees to ‘‘carefully consider exploring every possible alternative available.’’
Administrators also presented the district's second interim financial report and a post‑issuance bond/refinancing summary. Assistant superintendent/business services Mr. Herrera said the district sold $35,000,000 of new Measure ME bonds at an interest cost of about 4.26% and refinanced roughly $32,000,000 of prior debt in two tranches (one at about 2.7%, the other near 4.23%). He reported approximately $5,000,000 in aggregate savings for local taxpayers from the refinancing; present‑value calculations were described as roughly $4,000,000.
Herrera said the cost of issuance for the transaction was about $886,000 (approximately 1% of the funds). He described the market timing as favorable and said the district paired the new sale with refinancing to reduce overall debt service for voters.
On the interim report, staff recommended — and the board approved — a "positive" certification under state law, meaning the district expects to meet its financial obligations for the current year and two subsequent years. Presenters cautioned that designation does not eliminate fiscal pressures: staff projected a $1.2 million total deficit across funds that masks a roughly $20 million general‑fund deficit this year (the measure ME bond temporarily offsets overall shortfall because it added one‑time revenue). The presentation noted that many grants and one‑time funds will sunset, and declining enrollment could reduce LCFF revenue in coming years.
District staff said they absorbed recent staffing reductions primarily through attrition and projected further certificated reductions equal to roughly 15 full‑time positions next year and 12 the year after if current trends continue. Trustees emphasized a desire to maintain services while meeting statutory notice requirements.
Votes at a glance - Approval of minutes (02/17/2026): carried 4–0. - Action and consent agenda: carried 4–0. - Certification of signatures: carried 4–0. - Resolution 25–26–32 (reduction of classified services, precautionary): carried 4–0 (motion moved, seconded; voice vote). - Second interim financial report (positive certification): carried 4–0. - Multiple proclamations (Autism Awareness Month; El Dia de los Ninos; Public Schools Month; Volunteer Week): carried 4–0.
Why it matters The resolution places job‑security questions on the near horizon for classified staff and signals the district's effort to comply with legal timelines while continuing to pursue alternatives. The bond sale provides capital for facility improvements, but the interim report flagged structural budget risks driven by expiring one‑time revenue and continuing enrollment declines that will require further board decisions.
What happens next The district said it will continue negotiating and seeking solutions to avoid position eliminations where possible; if notices are issued, union representatives and affected employees will receive the legally required information and timelines. The board will bring the June budget and LCAP to the board after the state's May revision and continue monitoring multi‑year projections.
