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Hacienda La Puente USD board hears sobering second‑interim report; trustees warned of multi‑year deficits
Summary
District staff presented the 2025–26 second interim financial report showing a projected $20 million drop in the current year and continuing multi‑year deficits; trustees cited a high FHRA risk rating and urged expedited steps to protect the district’s minimum reserve.
Miss Risco, the district presenter, told the board the second interim shows the district began the year with a $68,000,000 fund balance and projects a net decrease of about $20,000,000 this year, leaving an ending balance near $47,000,000.
"We start off for the year at 68,000,000," Miss Risco said, adding projected deficits in years two and three that would reduce the ending fund balance to approximately $22,000,000 without further action.
Why it matters: trustees said the presentation documented a structural trend of deficit spending driven by declining enrollment, lower cost‑of‑living adjustments compared with earlier projections and the expiration of one‑time funds. Board members repeatedly pointed to the district’s FHRA (fiscal health risk analysis) rating and warned that reserves could fall below the 3% minimum required by state rules.
Trustee comments framed the next steps. One trustee summarized staff findings from the FHRA and said the district’s risk rating is “high risk,” pressing for a board‑level plan to avoid negative certification and potential state oversight. Superintendent Roach acknowledged the constraints and said the administration would work with bargaining units and the community to identify options that preserve classroom staff where possible.
Board members pressed for specific follow‑ups: a line‑item list of programs currently funded by one‑time sources, a school‑by‑school inventory of programs that rely on those funds, and a detailed breakdown of special‑education costs. Several trustees asked staff to return with scenario analyses that show which reductions would preserve core instruction and which would require more disruptive changes.
The board adopted the 2025–26 second interim positive certification later in the meeting by roll call (motion carried unanimously). The administration said the budget‑development process continues through April and May, with the governor’s May revision due May 14 and the district budget adoption scheduled for June.
