Claremont Unified board approves second interim financial report with 'positive certification despite projected deficits

The Claremont Unified School District Board of Education approved the district's 2025-26 second interim financial report and assigned a positive certification, while staff warned that projected multiyear deficits could trigger heightened county oversight if the trend continues.

Finance staff presented the report and the governor's budget context, explaining Proposition 98 and the administration's proposed maneuvers that would delay $5.6 billion in funding to schools. The presenter reported current district enrollment of 6,010 students and projected deficits of approximately $7,000,000 in the current year, $3,800,000 in 2026-27 and $3,200,000 in 2027-28. Staff said the district expects to close 2025-26 with a combined general fund balance of $11,900,000 (about $11,500,000 unrestricted) and that it is assigning $8,000,000 to cover future deficits while keeping a roughly $3,500,000 reserve for economic uncertainty (about 3.05% of expenditures).

"This evening, staff is recommending a positive certification be assigned to the district's second interim report," the presenter said, noting that a positive certification indicates the district expects to meet its financial obligations for the current and two subsequent fiscal years based on current projections. The report also noted that Los Angeles County Office of Education has flagged the district's deficit-spending trend and may request a fiscal stabilization plan if the trend continues.

Board members asked clarifying questions about which programs receive a cost-of-living adjustment (COLA) and about the projected ending balances. Staff confirmed the COLA is applied to LCFF and some categorical programs but not to all restricted funds such as certain Title programs. One board member noted that with a projected $4.5 million ending balance and an ongoing deficit trend, available reserves will be strained in later years.

The board voted to approve the second interim report with a positive certification (motion by Catherine Dunne; second by Kathy Archer). Student board members participated with advisory ayes. Staff said the district will incorporate any updates from the governor's May revision and report back during the June budget adoption process.

Next steps: staff will monitor the May revision, continue community engagement on facilities, and, if required by the county, prepare a fiscal stabilization plan for board consideration.