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Chico Unified previews 2024–25 budget, warns of $1M projected deficit and state cash-deferral risk
Summary
District finance staff outlined the 2024–25 original budget, projecting about a $1 million deficit while emphasizing most unrestricted spending is salaries and noting potential state "cash deferral" could shift June payments into July; the district said it could manage a one-month deferral but will monitor state action.
District finance staff presented the Chico Unified School District's 2024'25 original budget at the June 12 board meeting and warned about both a modest projected operating deficit and the risk posed by potential state-level cash-deferral proposals.
Jacqueline (speaker 8) and finance staff said the district's total budget is about $216 million, with roughly $19 million in LCAP-targeted funds. Staff projected a net decrease in fund balance for 2024'25 of about $1,000,000 and described restricted-grant timing and carryovers as the primary drivers for the restricted-side pressure. Speakers emphasized that approximately 90% of the district's unrestricted expenditures are people costs (salaries and benefits).
Staff also flagged a state budget proposal being discussed that could defer the June state payment into July. "If they want to defer multiple months, that starts to build," staff said, noting May payroll was just over $14,000,000. District finance staff said they could weather a single June-to-July deferral but urged the board and public to treat potential deferrals as a key uncertainty.
Presenters described revenue assumptions used in the budget: a 1.07% cost-of-living adjustment (COLA) and funded ADA based on recent enrollment increases. They also highlighted an unduplicated pupil percentage projected at 54.94%, below the 55% threshold that can trigger additional concentration funding; staff said concentration funding previously provided several hundred thousand dollars to more than $1 million in prior years and that the projection reduces that expectation.
The budget is informational-only at this meeting and will return to the board for approval on June 26, after staff post supporting documents and accept public comment. Staff advised the public to review the posted materials and said they will return with updates should the state budget or cash-flow conditions change.
