Murrieta Valley Unified board approves second interim as district outlines multi‑year shortfall and one‑time fixes

The Murrieta Valley Unified School District board on Tuesday approved the district's second interim financial report and filed a positive certification after a two‑hour presentation from Chief Business Officer James Whittington on the district's multi‑year budget outlook.

Whittington told the board the 2025‑26 projections rely on several temporary actions and funding shifts, including moving $5.3 million in currently unrestricted personnel expenses into restricted one‑time funds and incorporating $4.8 million in recently negotiated salary increases. He said the district also paused a $3.4 million deferred maintenance contribution this year to help balance the current budget.

"We have taken a number of right‑sizing actions and used one‑time dollars where allowable to balance the current year," Whittington said in his presentation, which included enrollment trends, shifted expenditures and multiyear projections.

The presentation identified a structural shortfall on the unrestricted side of the budget at second interim of about $9.4 million for 2026‑27 and projected additional pressure in the subsequent year. Whittington said textbook adoptions and other planned costs contributed to a projected $16.2 million reduction in ending fund balance in later years unless ongoing solutions are found.

To address the gap, staff outlined actions already underway and planned for 2026‑27: eliminating some district office positions as they vacate, capturing attrition savings, pausing routine classroom refreshes and shifting some administrative costs to after‑school (ELOP) programs where allowable. Whittington described these as "temporary and one‑time" maneuvers and cautioned they may not be sustainable if one‑time funding sources disappear.

Board members asked for additional detail on the composition of the district's revenue (LCFF, local property taxes, state aid) and the mechanics of shifting expenditures between restricted and unrestricted categories. Trustee Schmidt requested clearer accounting of legal and personnel costs tied to recent PERB filings; Whittington said staff would follow up with more detailed numbers.

The board voted 4‑0 to approve the second interim report and to file a positive certification, which signifies the district expects to meet its financial obligations for the current and two successive fiscal years under California Education Code requirements. The board also earlier adopted Resolution No. 25‑26‑12 allowing the layoff of vacant classified positions; trustees framed that action as a procedural step tied to planning for potential staffing adjustments.

Whittington and trustees emphasized that enrollment decline (about 100 students year‑over‑year) is the primary ongoing pressure on the budget because state funding is allocated on a per‑student basis. The district will continue multiyear budget development and scenario planning at an upcoming all‑day facilities and finances workshop with consultants.

Next steps: staff will provide follow‑up detail on the revenue mix and specific planned right‑sizing measures, and the board will review budget development work in advance of the 2026‑27 adopted budget process.