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Rowland Unified certifies second interim budget as "positive" while projecting multiyear deficits
Summary
Board received the district second interim financial report and certified a "positive" outlook for the current and next two fiscal years while staff warned of a projected multiyear deficit and outlined assumptions including COLA, CPI, and a potential $2.2 million classified early-retirement incentive not yet modeled.
Rowland Unified School District trustees voted to receive and certify the district's second interim financial report on March 12, 2026, a staff presentation that projects the district will meet its financial obligations for the current year and the following two fiscal years but shows a multiyear structural deficit.
The report, presented after a slide overview by Mary Kim and a detailed review by Corey Durand, the district director of fiscal services, said revenues and expenditures had both risen since the first interim: revenues were projected to increase by about $1,000,000 while expenditures rose by roughly $860,000. Staff told the board the multi-year projection anticipates escalating costs, declines in enrollment and average daily attendance, and rising retirement rates.
Why it matters: a "positive" certification indicates the district expects to meet its near-term obligations, but the budget model showed cumulative deficits across fiscal years 2026 27 and 2027 28 that trustees described as concerning and that will require follow-up planning.
Core financial assumptions cited by staff included a cost-of-living adjustment of 2.41% for 2026 27 and 3.606% for 2027 28, a CPI assumption near 3.08% for 2026 27, and projected increases to employer pension rates (PERS). Durand also flagged an estimated Classified Early Retirement Incentive of approximately $2,200,000 that was not yet included in the multiyear projection; staff said the district currently has the ending fund balance to support such a one-time program if the board approves it.
Trustees asked questions about the size of the projected deficit (one trustee cited an estimate "between almost $5,000,000 to almost $7,000,000 over the next three years") and about options to offset the shortfall. Board members and presenters discussed the superintendent's budget advisory committee and other opportunities to identify savings while protecting instructional programs.
The board voted to receive the second interim report and certify a "positive" status; the motion passed by voice vote.
Next steps: staff will continue budget-planning work, include the superintendent's advisory committee input, and return to the board with follow-up analyses and recommendations as assumptions (including the May revise and final COLA numbers) are updated.
