SRVUSD second‑interim report shows planned $14.8M drawdown; staff recommends 'positive' certification

District finance staff presented the 2025–26 second‑interim report showing combined revenues of roughly $470 million and combined expenditures of about $485 million, leaving a planned combined deficit of approximately $14.8 million that staff described as intentional and funded largely through restricted grants and one‑time revenue.

Assistant Superintendent Danny Homan and Executive Director Evan Miller explained the major changes since the first interim: approximately $6.95 million in restricted ZEBUS funding from the Bay Area Air Quality Management District to replace diesel buses with battery‑electric buses (and to install charging infrastructure), roughly $700,000 in partial‑year revenue from the newly closed property sale at 3130 Crow Canyon, and other restricted grants and donations.

“We've included the grant proceeds and the purchase orders for the buses in this fiscal year to demonstrate the order and to meet the grant requirements,” Homan said. He added that the unrestricted side of the budget is nearly balanced, with about $400,000 more in expenditures than revenues on the unrestricted general fund.

Staff told the board the multi‑year projection reflects lower enrollment and a downward revision in the state COLA; the district’s strategic reserve sits at about 4% this year with a board goal of 7%. Staff recommended the board self‑certify the second interim as "positive," meaning the district can meet its obligations for the current and next two fiscal years.

After questions from trustees about Prop 98 and state actions that could alter the district’s outlook, the board moved and approved the second‑interim report by voice vote.

Next steps: staff will present the final proposed budget for 2026–27 in June, after state budget actions are clearer.