CBO: Bassett Unified projects $2 million deficit but maintains positive certification; teachers urge board to approve full contract

Denise Zinnivara, Bassett Unified's chief business officer, told the board on Wednesday that the district's second interim report projects $36.8 million in revenue and $39.0 million in expenditures for 2025-26, producing approximately $2.0 million in deficit spending and reducing the beginning general-fund balance from about $22.0 million to roughly $20.0 million.

"The difference between revenues and expenditures is negative $2,000,000, which is known as deficit spending," Zinnivara said, urging trustees to consider the assumptions that underlie multiyear projections and noting that the report reflects actuals through Jan. 31.

The report, a statutorily required update districts file with the county, projects multiyear changes for 2026-27 and 2027-28, notes enrollment and ADA assumptions and flags possible cost pressures including retirement contributions and rising health benefit rates. Zinnivara said the district's calculations currently support a "positive" certification for the current period and the forecast out years while acknowledging the fluid nature of the state budget and one-time versus ongoing funding.

The Bassett Teachers Association urged the board during public comment to move forward in negotiations. A BTA representative said the district has "built up significant reserves" and projected roughly $30 million in savings, arguing the district can afford the full salary and benefits proposal on the table.

"The district can more than afford our full proposal, and we hope the board will carefully consider that reality as negotiations continue," the association representative said.

Board members asked for further detail on reserves and the distinction between the state's rainy-day balance and locally held unrestricted reserves. Zinnivara explained that Proposition 98 and other constraints determine what funds are restricted, and that districts must maintain a mandated minimum reserve (3% of general fund) plus any board-adopted policy reserve (the board has set a 10% target in total, combining mandated and additional board-approved reserves).

Trustees did not take an on-the-record vote to adopt budget changes at the meeting; the CBO recommended the board approve posting the second interim and signaled staff would return with further clarifications if requested.

The board adjourned following the consent calendar; the district will continue negotiations with BTA and return periodic budget updates as the state budget and local enrollment figures evolve.