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El Monte schools project $1.28 million all‑funds deficit; district meets state fiscal certification for now
Summary
At its Dec. 15 meeting the El Monte City School District received its 2025‑26 first interim financial report: total revenues are projected at about $230.1 million, expenditures about $231.4 million (an all‑funds deficit of roughly $1.28 million); district staff said the district remains fiscally solvent but faces a structural deficit driven by declining enrollment and expiring one‑time grants.
The El Monte City School District presented a 2025‑26 first interim financial report at the board’s Dec. 15 meeting showing projected total revenues of about $230.1 million and total expenditures of roughly $231.4 million, producing an all‑funds deficit of approximately $1.28 million.
Jen Piantos, the district’s Director of Physical Services, told the board the general fund’s ongoing expenditures exceed ongoing revenues, creating a structural deficit even though the district currently meets state multi‑year fiscal certification and is projected to remain above the minimum 3% unrestricted reserve over the next two years. Piantos said restricted funds (grants and bond proceeds) are included in the all‑funds total and cannot be used for general operating costs.
Key drivers identified in the presentation: a projected continued decline in student enrollment (the district’s projection showed a loss of more than 2,500 students — roughly 31% — by the 2027‑28 fiscal year), expiration of about $11.2 million in one‑time grant funding at the end of 2025‑26, and growing special education costs. Piantos said the district is using reserves to cover shortfalls in the short term but emphasized that “continued deficit spending is not sustainable long term and will require ongoing adjustments.”
The board approved the first interim report by voice vote. Next fiscal checkpoints include the second interim report in March and the proposed state budget in January; the 2026‑27 LCAP and adopted budget will be presented in June. Administration recommended continued monitoring and development of adjustments to staffing and expenditures to respond to enrollment and revenue changes.
Board members asked clarifying questions about revenue sources and the potential impact of a ballot initiative affecting the Education Protection Account; district staff said the district is monitoring state developments and will return with updates as the governor’s budget proposal and state details become available.
