HBUHSD board certifies 2025-26 second interim despite projected deficit and declining enrollment

The Huntington Beach Union High School District Board voted unanimously to certify its 2025-26 second interim financial report after a detailed presentation from the assistant superintendent of business services.

Assistant Superintendent Mrs. Green told trustees the second interim covers financial results through Jan. 31, 2026, and included revised multiyear projections. She said total second interim revenues are about $260,000,000 while expenditures are about $282,000,000, producing planned deficit spending to use one-time restricted funds before they expire. "Our expenses are greater than our revenues," she said, summarizing the central fiscal challenge.

Mrs. Green highlighted several drivers: an estimated Prop 98 change that increased governor—s revised levels by roughly $21.8 million from the prior adopted levels; a legislative analyst estimate that differed materially from the governor—s projection; health and welfare costs that rose by over 11% on average for 2026; and declining enrollment, which she reported fell by 455 students this year and is projected to decline by about 260 students the next year and roughly 263 thereafter. She said the district will use one-time and restricted funds strategically while reducing excess spending to limit impacts on student programs.

Trustees pressed staff on enrollment projections, local school-level impacts and how the district is working with principals to manage categorical versus general fund dollars. Mrs. Green said the district uses a third-party demographer and will provide more feeder-pattern detail on request.

The board moved the certification of the second interim to the consent calendar and voted 5-0 to certify that the district can meet its financial obligations for the current year and the two subsequent years. The motion was recorded as made by Dr. Dushna and seconded by Mrs. Hernandez; the board chair conducted the roll call.

What it means: Certification is an acknowledgment by the board that, based on current projections and planned use of one-time funds, the district can meet obligations for the near term. Mrs. Green said the district will continue to monitor COLA projections and the governor—s May revised budget, and will be proactive in reducing expenditures where possible.

Next steps: Staff will monitor spring budget revisions, provide further enrollment detail by feeder patterns and return with recommendations if midyear adjustments are required.