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Western Placer Unified board certifies second interim budget as 'positive' despite projected shortfalls
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Summary
The Western Placer Unified Board of Trustees voted to certify the district's second interim budget as "positive," while staff warned of enrollment and expenditure pressures that reduce projected fund balances over the next three years.
The Western Placer Unified Board of Trustees voted to certify the district's second interim budget for 2025-26 as "positive," after district business staff outlined modest revenue gains and larger expenditure increases that depress projected fund balances.
Business services director Karen told the board the second interim report shows total revenues up about $810,000 since first interim but expenditures rising by roughly $1.2 million, reducing the district's projected ending fund balance by just over $2 million. She said the district is projecting enrollment of about 8,230 students this year and expects to meet its financial obligations for the current and next two fiscal years under current projections.
"We're currently on the second interim report for 25-26," Karen said. "We are recommending that you certify the second interim report as positive based upon current projections. We will be able to meet our financial obligations for the current fiscal year and the subsequent two fiscal years." Board members then moved, seconded and approved certification by voice vote.
Karen told trustees the district had an enrollment shortfall of about 60 students relative to projections, reducing Average Daily Attendance (ADA) funding and costing roughly $290,000. She also reported increases in certificated and classified salaries and benefits, higher technology license and utility costs, and increased transfers to the cafeteria fund. Positive items included higher interest revenue (about $300,000) and adjusted categorical revenues tied to special education.
The report forecasts multi-year totals of roughly $130 million in revenue for the current year and anticipates a modest surplus in the district's economic uncertainty reserve in the near term. Karen cautioned that proposed statewide revenue increases remain subject to legislative action and that lingering salary negotiations could materially change projections.
The board asked questions about state revenue "diversion" and the legislative analyst's updated projections; staff said the LAO has revised upward some revenue estimates, but cautioned the gains may not be recurring. The board signaled it will monitor the governor's May revised budget, the district's adopted budget in June and, if needed, a 45-day revision later in the summer.
The board certified the second interim budget as "positive," which means staff project the district can meet its obligations through the current and two subsequent fiscal years under current assumptions. The board will receive updates at future meetings as state and local numbers evolve.
