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District reports $6.2M deficit in 2024–25 unaudited actuals; board approves report 5–0
Summary
Business services presented the 2024–25 unaudited actuals showing $6.2 million in deficit spending and an ending fund balance of roughly $80.4 million; the board approved the unaudited actuals unanimously and discussed long‑term fiscal pressures including declining enrollment and rising personnel costs.
Business services presented the 2024–25 unaudited actuals to the Paramount Unified School District board on Sept. 10 and the board voted unanimously to accept the report.
District presenters said the general fund recorded deficit spending of $6.2 million in 2024–25. The beginning fund balance was noted at about $86.6 million and the projected ending balance about $80.4 million. Staff explained components of the ending balance, including inventories, committed funds, and a $19 million reserve for economic uncertainties — roughly one month of operational expenses.
The presentation showed combined general-fund revenue of about $263.9 million and total general-fund expenditures listed at roughly $2290.9 million on the slide deck provided to the board. Staff said $30 million of otherwise unrestricted revenue was contributed to restricted uses for routine restricted maintenance and special education.
Business staff said the district is deficit spending in this year for the first time in recent years and that, without changes, multiyear projections show worsening deficits, with one projection showing a potential significant deficit in later years. During Q&A board members asked about the projection to 2028 and the calculation of a negative $23 million in that scenario.
Board members and staff discussed drivers of the gap — declining enrollment (about 400 fewer students projected this year), personnel costs that comprise about 79% of the district's expenditures, increased special-education costs, and ongoing step/column and salary increases. Staff pointed to a small COLA (2.3%) that partially offsets cost pressures but does not eliminate the structural gap.
The board approved the 2024–25 unaudited actuals (item 11.16) by a recorded vote of 5–0. Members said they would continue to review potential mitigation measures, and staff said they would bring additional information on fiscal sustainability and options to address multiyear deficits.
