Anaheim Elementary board flags multi-year shortfall, approves transportation plan and second interim report

The Anaheim Elementary School District Board of Education on March 11 approved its annual transportation services plan and adopted a second interim budget report that projects a near-term structural deficit and reduced unrestricted funds.

Assistant Superintendent of Administrative Services Matthew Slusser told trustees the transportation update is required under Education Code 39800.1 and reflects last year's expenses and state apportionment rules: the district reported roughly $6.6 million in transportation expenses with about 60% reimbursed by state apportionment. Slusser said the total revenue the district will receive from that program for the prior year is just over $2.8 million. The board voted to approve the transportation plan by voice vote.

Slusser then presented the district's second interim report, covering July 1 through Jan. 31. The presentation summarized revenue and expense updates: modest LCFF adjustments, increases in some federal and local revenue categories, and nearly $2.2 million in identified reductions to expenditures (legal services, other contracted services and capital purchases). But Slusser said the district remains in deficit spending: the report projects roughly $18 million of deficit spending this year and multi-year shortfalls that would reduce ending fund balance from about $91 million at the start of the year to an estimated just-under $72 million at year-end.

"We are experiencing a structural deficit," Slusser said, noting enrollment declines (about 500 students a year) and rising costs such as health and welfare and special-education expenditures. He told trustees the district is planning community budget-priority meetings and additional budget advisory sessions before LCAP and budget adoption in June.

Superintendent Jesus Chavarria said the presentation is part of a multi-step effort to align budget decisions with district values and to identify positions and programs that most directly affect student outcomes. "We're analyzing every position that becomes vacant to see, based on our core values, whether it makes sense to fill it," Chavarria said.

During Q&A trustees pressed staff on fuel and energy costs and how electric charging and compressed natural gas factor into the transportation budget. Slusser said the district spends about $8,000 per month on fuel and that electric and CNG costs are more stable but charging schedules affect costs for EVs.

The board approved the second interim report in a voice vote following the discussion. Chavarria and Slusser said trustees will get further details via upcoming budget meetings, the Friday board memo, and later presentations about cost teams and special-education budget impacts.

Votes at a glance - Resolution 2025-26/43 (closed-session personnel action: non-reelection of one probationary certificated employee, PCE 2026-27/01): adopted, 5-0 (reported after closed session). - Motion to approve 2025-26 Transportation Services Plan: approved by voice vote. - Motion to adopt the February/second interim report: approved by voice vote.

What happens next The district plans a series of six community budget meetings and additional district budget advisory committee sessions through the spring. Trustees were told the governor's May revision and the district's LCAP development will shape final budget actions in June.