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Calexico Unified trustees approve revised budget as staff warns of tight FY25–26 finances and high workers’ comp costs
Summary
Trustees unanimously approved the revised 2025–26 budget after a district presentation that cited falling enrollment, reliance on reserves for energy projects and unusually high workers’ compensation costs that cost the general fund about $7 million annually.
District staff presented a constrained fiscal picture and a plan that relies on one-time reserves and outside grants to complete ongoing energy and facilities work, and the board approved the revised 2025–26 budget by a 4–0 vote.
The presenter said grant- and project-sized funding streams vary widely—“some of them are as low as $10,000” and “some of them are as high as $910,000,000”—and described recent energy infrastructure modernization projects, including solar shade structures and replacement of roughly 240 HVAC units. “Once we energize the solar shade structures … we’re gonna be saving about half $1,000,000 in energy cost on a yearly basis,” the presenter said, and staff expect to request reimbursements from the Inflation Reduction Act, a low-income bonus, the Cal SHAPE grant and awards from the Imperial County Air Pollution Control Board.
Trustees were warned that fiscal year 2025–26 is “very tight,” with declining ADA (average daily attendance) reducing state funding and required contributions—special education and the routine restricted maintenance account—placing additional pressure on the general fund. The presenter noted the California Department of Education requires districts to spend at least 3% of their budget on routine maintenance.
Trustees questioned revenue restrictions and cost drivers. A trustee asked whether indirect-cost caps—often around 4%—matter for district recovery; the presenter said caps can be significant depending on the size of the revenue stream. On workers’ compensation, a district official described existing mitigation efforts and said the district currently pays “about $7,000,000 of unrestricted general fund money, towards workers’ comp.” The official described a return-to-work program, targeted training, safety reviews and accommodations coordinated through human resources as strategies to reduce claims and costs.
Board President Contreras called for a motion to approve the 2024–25 unaudited actuals and the 2025–26 revised budget; Mr. Castillo moved, Mr. Arellano seconded and the board approved the motion by voice vote, 4–0. The board then proceeded to other agenda items and moved into a closed session later in the meeting.
