CNUSD presents first interim budget showing $225.2M projected ending balance; staff recommends positive certification

Melissa Elwood, administrative director of business services, presented the district’s 2024–25 first interim financial report and recommended the board adopt a positive certification.

Elwood said the district’s local-control funding formula assumptions include a 1.07% COLA for the current year and an unduplicated pupil percentage of 72%. She told trustees the district projects a decline in ADA of 500 students compared with the prior year. The first interim reflects carryover revenues from the prior year; Elwood noted an increase from the adopted budget to the first interim of about $14.5 million and a total projected expenditures increase of about $90.1 million, primarily driven by capital outlay and carryover projects.

Elwood summarized the projected ending fund balance at $225,200,000, comprised of restricted grants (~$112,500,000), committed funds (~$31,900,000), other assignments (~$60,900,000) and the required 2% reserve for economic uncertainties. She said the district projects COLA assumptions for the 2025–26 and 2026–27 fiscal years at 2.93% and 3.08%, respectively, but will update those assumptions when the governor’s proposed budget is released.

Trustees asked clarifying questions about timing for bond issuances tied to Measure GG, the distinction between general-fund and bond-funded portions of projects, and the district office space-planning allocation. Elwood said project timing depends on market conditions, spending-down requirements for prior issuances and financial-adviser guidance.

Staff recommended the board adopt a positive certification for the first interim report; the transcript records discussion and an invitation for trustees to ask questions before the board moved forward with consent items.