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Carlsbad Unified revises revenue outlook, uses $1.8M from stabilization fund to balance first interim
Summary
The district’s first interim shows a net $2.6M decline in ending fund balance driven by a $5.6M correction to property‑tax assumptions and higher services costs; staff used $1.8M of the stabilization assignment and issued a positive certification.
Assistant Superintendent of Business Services Rob Nye presented Carlsbad Unified’s 2025‑26 first interim financial report at the Dec. 10 board meeting, telling trustees the district’s projected revenue dropped by about $1.5 million from the adopted budget due to a $4.0 million correction to in‑lieu property tax accounting and a $1.6 million reduction tied to basic‑aid status and the loss of supplemental property taxes. Projected expenditures increased about $1.1 million, yielding a net reduction in the ending fund balance of roughly $2.6 million.
Nye said the district corrected a June budget assumption that had treated in‑lieu property taxes as revenue without offsetting payouts to charter entities, and confirmed with county officials the district is in its second year of basic‑aid status, which reduces supplemental tax revenue. On the expenditure side, corrections to benefits assumptions, a reallocation of classified staffing (removing vacancy‑driven costs) and increased costs for contracted services and outside agencies explained most of the $1.1M increase.
To maintain a balanced budget and meet board policy reserve requirements, staff recommended using $1.8 million of the district’s committed stabilization assignment—funds established for fiscal uncertainty. Nye presented the multi‑year projection showing revenue growth over the next two out years and kept a positive interim certification for the district.
Trustees asked numerous follow‑up questions about the timing and documentation of property‑tax assumptions, the nature of the benefits corrections, use of agency aides versus internal hires, and whether camera or other capital upgrades would be paid from committed or bond funds. Staff said they would provide more detailed breakdowns by category and that the district continues recruitment efforts to reduce agency costs over time.
The board voted 5–0 to approve the first interim financial report and certify the district’s fiscal position as positive.
Key numbers (as presented) - Projected total revenue revised to approximately $171.2M (down ~ $1.5M) - Projected total expenditures revised to approximately $176.8M (up ~$1.1M) - Ending combined fund balance reduced to roughly $18.8M from $21.5M at adoption - $1.8M used from the stabilization assignment to balance the current year
The board approved the interim report on a 5–0 vote.
