Newark Unified board adopts second interim budget amid calls for clearer breakdowns of special-education and books-and-supplies costs

The Newark Unified School District Board of Education voted March 3 to accept the district's second interim budget report and to set committed fund balances for 2025-26 after more than an hour of public comment and board questions.

Assistant Superintendent and Chief Business Officer Victoria Knudsen presented the second interim package, explaining the report covers actuals through Jan. 31 and incorporates carryovers and updated assumptions, including state COLA and multi-year enrollment projections. Knudsen said the district is using a three-year rolling average for average daily attendance (ADA) and that the district's beginning fund balance remains about $31.5 million. She told the board the district currently projects an ending fund balance of roughly $13.8 million for 2025-26 after restricted commitments and required reserves.

The presentation prompted several public speakers to raise concerns about the timing of materials and specific line items. A public commenter noted the budget packet was posted shortly before the meeting and argued that, under the Brown Act, documents distributed to a majority of board members less than 72 hours before a meeting must be available to the public. Another speaker questioned a projected increase in the 20books and supplies20 category from about $2.3 million last year to roughly $6.5 million in the second interim.

Knudsen said the higher figure reflects one-time carryover obligations and planned expenditures that must be recorded in the current year, including summer programs, LCAP goal spending and an anticipated math adoption pilot. She also said some Proposition 28 funds (math and music) must be spent out this year.

Board members sought a clearer breakdown. Member Block asked whether the $6.5 million figure represented a forthcoming set of purchases or adoptions; Knudsen said she would follow up with a detailed accounting. Member Hill asked for prior-year comparisons and percentage changes alongside dollar amounts in future reports; Knudsen and Superintendent Vaccaro agreed that prior unaudited actuals and percent changes would be added in subsequent presentations.

Special education emerged as a primary driver of the district's restricted commitments. Knudsen said restricted programs generate roughly $18.3 million in categorical revenue while special-education expenditures run near $20 million, requiring an unrestricted-side contribution that administration has held steady from the first interim. Knudsen and Vaccaro told the board they would pursue deeper, 0-based budgeting reviews of special education, examine contracts and consider whether some consultant roles should become district employees to reduce long-term costs.

After questions, the board approved the second interim budget and a related resolution to set committed balances, including a reduced deferred-maintenance set-aside after recent equipment purchases. The motions carried with the majority of trustees voting in favor; the student board member voted where appropriate on non-personnel items.

The CBO said the county office will receive the required interim report by the statutory March 15 deadline. Board members asked for additional follow-up on the books-and-supplies increase, a clearer itemized list of the restricted commitments (routine maintenance, special education) and a plan for communicating financial changes to the public.

The board signaled it will continue to examine multiyear projections and asked administration to provide prior-year unaudited actuals and percentage changes with future reports so trustees and the community can better track trends.