District projects slight gap as trustees approve positive certification of second interim report

The Sequoia Union High School District on Wednesday approved staff’s recommendation to issue a positive certification for the 2025–26 second interim financial report after a presentation that flagged a projected gap between revenues and expenditures and reserve pressures over the multiyear forecast.

Assistant Superintendent of Administrative Services Janae Marking told trustees the district’s projected revenues for the year are $265,126,489, a roughly 1% increase since the first interim, while projected expenditures are $269,894,078, about a 4% increase. Marking said approximately 83% of general fund revenues are unrestricted property taxes, with the state at roughly 9%, local other at 7%, and federal funding about 1.5%.

Marking said the multiyear projection shows reserves falling below the 8% target established in board policy 3100 under certain assumptions and emphasized the need for conservative projections to avoid future emergency cuts. The report, she said, does not include the district’s recent TIDE closure or the position-reduction actions discussed after Jan. 31.

On specific liabilities, Marking disclosed the district’s estimated responsibility related to the Genentech property-tax settlement at approximately $1,200,000 so far and said the district is holding $3,000,000 in assigned fund balance to plan for potential additional assessments tied to the matter.

Trustees asked how enrollment declines factor into the projections; staff said enrollment is being tracked and that adjustments would be made when assumptions change. The presentation listed negotiating with labor partners and rising benefit costs as near-term uncertainties.

After discussion, a trustee moved approval and the board voted to accept the report and the staff recommendation for positive certification under the Education Code definitions provided in the presentation.