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Tehachapi Unified board certifies positive budget outlook but flags reliance on one-time state money
Summary
Chief Business Officer Hojette Entazari presented the second interim report and multiyear projection; trustees adopted a positive certification noting a projected $3.246 million deficit in 2025–26 and continued reliance on one-time state funds and possible cash deferrals.
The Tehachapi Unified School District Governing Board voted March 10 to adopt a positive certification of the district’s second interim report for fiscal year 2025–26 after a detailed budget presentation by Chief Business Officer Hojette Entazari.
Entazari told trustees unrestricted and restricted revenues total about $65.9 million against projected expenditures of roughly $69.14 million, yielding a projected deficit of about $3.246 million for 2025–26. He reported the district expects to meet the board’s minimum reserve requirement of 9% and projects a combined ending fund balance of about $21.35 million, with roughly $14.39 million unrestricted.
Entazari cautioned that the district remains reliant on one-time state funding and that state cash-deferral mechanisms could create short-term timing challenges; he estimated a potential near-term cash deferral that could amount to about $3 million. "We are still currently relying on the state's one time funding that they continue to give us," he said, adding that ongoing funding is needed to sustain programs.
Board members asked questions about state reimbursement rates and the risk that lower cost-of-living adjustments or other changes could affect future-year projections; trustees expressed concern that small percentage changes in COLA assumptions translate into large dollar impacts on personnel costs.
Motion and vote: Vice President Kelly moved and Trustee Christiansen seconded adoption of Resolution 01MER26 (positive certification of the second interim report for 2025–26). The motion passed on a roll-call vote with six ayes.
Why it matters: A positive certification signals the district’s ability to meet its financial obligations for the current year and the subsequent two fiscal years under the assumptions presented but highlights sensitivity to one-time funds and COLA changes.
Next steps: Entazari will return with June budget adoption materials and multiyear projections incorporating the state’s May revise and final enacted budget.
