Board receives second interim budget: positive near-term certification, warnings for 2026'27 and beyond

Assistant Superintendent Rafael Guzman presented the Inglewood Unified School District's second interim budget on March 12, explaining the report's assumptions and delivering a "positive" certification for the current and two subsequent fiscal years while flagging longer-term risks in 2026'27 and 2027'28.

Guzman explained key budget terms (ADA, cash flow, COLA, LCFF) and said the district had adjusted its ADA projection downward to about 91% for the current year, with modest projected increases thereafter. He reported the district ended January with about $151,000,000 in cash and an unrestricted reserve around 12%.

On revenue and expenses, Guzman walked the board through multiyear projections that showed a near-term ability to meet obligations but a need to identify additional reductions in later years. He summarized a simplified bottom-line example: "we had 116,000,000 in revenue. We spent 96, and there's a contribution of 31, which means a negative of 12," and he said that pattern, combined with required contributions for special education and routine restricted maintenance, will push the district to identify reductions in 2026'27 and 2027'28 unless revenues or ADA materially improve.

Guzman described steps already taken and planned to mitigate out-year deficits: a fiscal stabilization plan presented in prior meetings, targeted staffing reductions tied to site closures, a supplemental early retirement program (SERP) that reduced pressure on personnel reductions, ongoing value-engineering to contain construction costs, and a review of contracts and consultant services to reduce external spending. He said the district will continue to monitor state and federal developments and update projections as new information arrives.

Board members pressed on contingency planning and enrollment strategies. Margaret Turner Evans asked how the district is preparing if federal or state funding declines; Guzman said the district runs multiyear projections, monitors guidance from the governor's office and Washington, and has contingency plans to reorganize funding streams (including moving some Title I-like activities to other pots if necessary). Several board members emphasized increasing student achievement and outreach to raise ADA as a revenue strategy.

The meeting also approved grouped consent items across divisions (human resources, student services, business services, facilities and county administrator items) without separate roll-call discussion. The board did not adopt a new budget at the meeting; Guzman said the next steps include preparing estimated actuals and an adopted budget and continuing to develop a fiscal stabilization plan for the 2025'26 budget process.

The presentation left the board with an immediate compliance step satisfied (the second interim certification) and a planning imperative to identify reductions and revenue strategies before the district faces sharper reserve declines in later years.