Elk Grove Unified presents first interim budget showing $1.1B revenue, board approves report

Elk Grove Unified School District staff presented the 2025-26 first interim budget and the board approved the report after trustees questioned assumptions on enrollment, benefits and pension costs.

"Our total general fund revenues, unrestricted and restricted, are $1,100,000,000," the district budget presenter said, noting nearly 93% of general fund revenue comes from state sources and that revenues rose after a stronger-than-projected CBEDS enrollment count and carryover funds for expanded-learning grants.

Staff described expenditure increases tied to recent labor settlements and one-time capital investments. "Our total general fund expenditures, unrestricted and restricted, are nearly $1,200,000,000. Seventy-seven percent of our total general fund expenditures are spent on salaries and benefits," the presenter said, and added that the interim reflected $18 million in additional salaries and benefits tied to settlements.

Trustees probed longer-term risks: the legislative analyst office's projected COLA, possible CalPERS rate increases and how the district plans to use one-time funds. Board members emphasized caution, noting several years of tight projections and urging the district to prioritize one-time revenue for one-time costs.

After discussion, the board moved and approved the 2025-26 first interim budget report. Staff said the district will submit the interim to the county office of education and return in March with second-interim updates once the governor's budget is released.

The board's vote to approve the first interim report was passed by the trustees at the conclusion of the presentation and discussion.