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Sequoia Union board approves first interim budget showing widening multi‑year deficits
Summary
Finance staff reported a $49.2 million projected ending fund balance but warned that a recently negotiated salary settlement (not yet fully included) would increase the current‑year deficit from $6.1 million to roughly $12 million and lower reserves below policy if not addressed.
Sequoia Union High School District trustees approved the district’s first interim financial report for the 2025–26 fiscal year on Dec. 10, a document that updates revenue and expenditure projections through Oct. 31, 2025.
Assistant Superintendent of Administrative Services and staff reported an increase in projected property‑tax revenue and carryover site funds, producing a preliminary ending fund balance of about $49.2 million. The presentation noted a projected operating deficit of $6.1 million under planning assumptions that do not yet reflect a board‑approved compensation settlement.
Staff warned that adding the unbudgeted $6.3 million cost of the salary settlement would raise this year’s deficit to about $12 million and drive reserves below the board’s adopted 8% guideline in the following years. The district’s revenues remain heavily dependent on property tax (about 83% of revenue) while salary and benefits account for about 81% of expenditures.
Trustees unanimously approved the positive certification at first interim and asked finance staff to include the full settlement costs in the second interim report due in March; staff also noted the district will present additional demographic and enrollment analysis in January to inform long‑range planning.
The board’s action keeps the district on the state’s required interim reporting schedule while highlighting a structural budget gap staff says must be addressed in coming months.
