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Milpitas Unified board adopts second interim budget with positive certification; special education gap highlighted
Summary
The board unanimously adopted the district’s second interim budget, certifying positive financial status while staff warned unrestricted general fund will continue to subsidize a roughly $25.8 million special education shortfall and projected transfers from the building fund are needed to balance near‑term budgets.
The Milpitas Unified School District board voted unanimously to adopt the 2025–26 second interim budget and submit a positive financial certification to the Santa Clara County Office of Education.
Chief business officers outlined the district’s general fund: roughly $175–176 million in revenue against about $186 million in projected expenditures (including recently negotiated settlements). Staff called attention to one‑time funding streams accounted for at second interim and to projected transfers from the district’s building fund to balance the current year (approximately $3.2 million), with a reduced transfer in the following year if SERP and cost‑management actions materialize.
Administrators also highlighted a continuing special education funding shortfall: total special education expenditures were presented at about $38.8 million while combined federal, state and local special‑ed revenue totaled roughly $9 million, leaving an approximate $25.8 million gap that is currently covered by the general fund. Director commentary stressed that this is common across California districts and will be the subject of a future study session to drill into causes and mitigation strategies.
Board members asked detailed questions about revenue assumptions, FTE counts (general‑fund‑supported FTE ~959.68, total district ~1,034.7), and whether SERP savings assumed replacement by less‑tenured hires; staff confirmed Keenan’s SERP analysis embedded many salary‑based savings assumptions and that benefit and statutory savings will be refined after final participant data are confirmed in June.
The board also approved a notice of completion for Innovation Campus Phase 2 construction and enacted several policy and personnel resolutions during the meeting.
