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Newman-Crows Landing board certifies second interim budget; reserves dip to about 3.5%
Summary
The board approved the 2025-26 Second Interim report and multiyear projections after a detailed presentation showing revenue adjustments (including a $162,789 LCFF increase), structural deficit pressures from salaries and benefits, and a current reserve near 3.5%; one trustee recorded a no vote.
The Newman-Crows Landing Unified School District board voted March 9 to approve its 2025-26 Second Interim budget report and multiyear projections, following a presentation by district finance staff outlining revenue and expenditure adjustments that leave the district with depleted reserves.
Cynthia, the district's budget presenter, said the Second Interim (as of Jan. 31, 2026) reflects updated enrollment and funding assumptions, including an increase of $162,789 in LCFF revenue between first and second interim projections and a small COLA adjustment (2.3%). She explained that increases in TK average-daily-attendance helped offset decreases in other funding categories and that timing of federal comprehensive-support funds has delayed some cash receipts.
On expenditures, Cynthia said the budget team adjusted certificated and classified salary assumptions for vacancies, updated employee-benefit estimates and modestly reduced projected utility costs, yielding roughly $2 million of adjustments. She warned that salaries and benefits are the primary structural-driver of the district's deficit and that decisions now will affect the district's third-year projections.
Trustees asked detailed questions about unduplicated pupil percentage (UPP) and special-education costs. Trustee 22 noted the UPP fell from about 71.66% to 69.26% and asked for a dollar equivalent; Cynthia tied the change to adopted-budget assumptions versus certified counts and said the team is tracking TK registration closely to mitigate impacts. Another trustee asked about an approximately $1.3 million adjustment in special-education funding; Cynthia said that a higher proportional contribution from the unrestricted fund reflects reclassifications of some costs and that the county has offered support to reconcile the 55% teacher-salary calculation.
Board action: Trustee Rudy moved to approve the Second Interim report and multiyear projections; the motion passed on a roll-call vote with one recorded no (Mister Watt) and the remaining trustees voting aye.
Why it matters: The Second Interim is the board's formal certification that the district anticipates meeting its financial obligations for the current and two subsequent fiscal years. A reserve reported as approximately 3.5% signals vulnerability: the superintendent and finance staff said the district aims to return reserves toward an 8% target, either in 2026-27 or later, but cautioned that rebuilding reserves is difficult once depleted.
Next steps: The district will continue budget development and community meetings as it prepares final notifications and adjustments ahead of the May 15 deadline.
