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Atascadero USD certifies finances as 'positive' despite enrollment declines and rising special-education costs
Summary
The board adopted a positive certification for the 2025–26 second interim budget after hearing that enrollment and ADA are declining, special-education costs require a $13.2 million general-fund contribution, and the district projects continued deficit spending without further adjustments.
The Atascadero Unified School District board voted to adopt Resolution 13-25-26, issuing a positive certification for the district's second interim report through Jan. 31, 2026, after a presentation on revenues, expenditures and midyear projections.
Business services staff explained that the district's funded enrollment on census day was 4,275 students, a decline of about 83 students year over year and approximately 363 students over a longer multi-year span. Because California school funding is driven by average daily attendance (ADA) through the LCFF, declines in enrollment and ADA reduce state revenue.
The district reported a modest increase in projected revenues since the first interim, in part due to higher interest earnings, but it also reported increased services and operating expenses (an estimated $1,260,000 increase) primarily tied to contracted special-education staffing and higher attorney fees. As a result, the district continues to project deficit spending in its multiyear projections, though the current reporting period shows a slightly smaller deficit than previously projected.
On special education, staff said state and federal special-education revenue does not fully cover mandated costs. The district will contribute approximately $13,200,000 from the general fund toward special-education expenditures this year, representing roughly 72% of the special-education budget and about 24% of unrestricted general fund revenues. Presenter remarks noted that special-education revenue is ADA-linked and therefore will decline alongside ADA.
Despite these pressures, the presenter recommended and the board adopted a positive certification, stating Atascadero is able to meet its financial obligations for the current fiscal year and the following two budgeted years based on current projections. Several trustees asked whether proposed state one-time discretionary funds (including a possible $2 million discretionary block grant and restored LREBG learning-recovery funds) would be used to rebuild reserves if awarded; staff said those potential one-time funds were not included in the second interim and would be considered at budget adoption in June.
"At second interim, Atascadero is considered positively certified," the presenter said, while cautioning that the certification depends on actual state funding and does not reflect recently negotiated agreements.
The board voted by roll call to approve Resolution 13-25-26.
