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Gilroy Unified accepts clean audit, hears declining enrollment forecast and approves positive interim budget
Summary
Auditors gave the district an unmodified opinion with no compliance findings and reported a modest increase in net position; demographers presented a 10‑year enrollment forecast showing steady decline, and the board certified a "positive" first interim financial report unanimously.
The Gilroy Unified board accepted the independent audit for fiscal 2023–24 and received a 10‑year enrollment forecast as staff outlined budget implications for declining enrollment.
James Marta of James Marta & Company presented the independent audit and bond compliance work for Measure E and Measure P, reporting an unmodified opinion and no internal control or compliance findings for federal or state programs. "We did not have any modifications," Marta told trustees, and he noted that while net position rose roughly $10 million this year, unrestricted net position remains negative because long‑term bond debt is recorded as a liability on the district’s balance sheet.
PowerSchool demographer Zach Worthen presented conservative and moderate enrollment scenarios that project a district‑wide decline over the next decade — from roughly 9,700–9,800 in 2025 to between about 8,000 and 8,800 in 2034 depending on the scenario and assumed housing yields. Worthen said the model factors cohort progression, new residential development and inter‑district transfers.
Assistant Superintendent/CBO Alvaro Meza and Director of Fiscal Services Kimberly Smith presented the first interim financial report (24–25), which the board certified as "positive." Staff highlighted substantial one‑time carryover dollars (tens of millions), an elevated unrestricted salary/benefit share of ongoing costs (noted at about 88% when adjusted for carryover) and planned reductions by attrition to respond to projected declines. The board approved the certification unanimously (9–0).
Trustees asked about reserves, the composition of carryover funds and strategies to sustain core services while avoiding abrupt midyear cuts. Staff said grant writers and ongoing fiscal monitoring would be used to seek one‑time and ongoing revenue sources and that multiyear projections would be updated after the state May revision on COLA.
