Board approves 2025-26 second interim budget with positive certification; staff points to $6M+ ongoing reductions
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Summary
The board certified a "positive" second interim budget for 2025-26, with roughly $158 million in revenue and personnel costs around 76.4% of expenditures; staff said ongoing reductions of about $6.0M for 2026-27 and $6.1M for 2027-28 are incorporated, improving reserves to a projected 5.81%.
Finance staff presented the 2025-26 second interim budget and recommended the board certify a "positive" multi-year outlook. The staff presentation noted a projected total revenue budget near $158 million for 2025-26, and that personnel (salaries and benefits) account for about 76.4% of expenditures. Staff explained assumptions (Governor's January budget, UCLA forecasts for CPI/Cola, improved pension rate assumptions) and said the district captured midyear savings through the new ERP system and the budget-stabilization process.
Staff described adopted ongoing reductions totaling about $6,000,000 in 2026-27 and approximately $6.1 million in 2027-28 that were approved through the fall/winter process and incorporated into the second interim to restore multi-year stability. Those measures, staff said, raise the projected ending fund balance reserve to about 5.81% in the out years.
Trustees moved, seconded and approved the second interim budget by voice vote. Staff said the next scheduled step is budget development and presentation for 2026-27 in June when the board will consider the public hearing and final adoption.
