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Gilroy Unified certifies positive 2024‑25 unaudited actuals and approves revised 2025‑26 budget amid growing special‑education cost pressure
Summary
Chief Business Officer presented a positive certification for 2024‑25, a revised 2025‑26 budget and a multi‑year projection; trustees discussed reserve policy, state deferrals and a special‑education underfunding that requires $23.2M from the general fund.
The Gilroy Unified School District board certified the district’s 2024‑25 unaudited actuals as a "positive" certification and approved a revised 2025‑26 budget after a presentation by Chief Business Officer Mr. Mesa.
Mesa told trustees the district ended the fiscal year with a stronger-than-expected fund balance, beating estimates by roughly $4 million and holding approximately a 21.23% reserve level after adjustments and including a June deferral that was received in July. He cautioned that one-time balances have fallen from roughly $30 million in prior years to a much smaller pool of designated funds.
Mesa emphasized a substantial and growing special-education funding gap: he said the district’s total special-education expenditures are about $37 million and that the general fund currently covers approximately $23.2 million of that cost because state and federal sources do not fully cover placements and services.
"$23.2 million from the operational general fund is needed to support special ed," Mesa said, adding that rising special-ed enrollment and higher-intensity services have driven the increase.
Trustees asked for more explanation of the reserve policy and the practical effect of state deferrals on district cash flow; Mesa explained the reserve is primarily operational cash to ensure payroll and obligations can be met when state payments are delayed. He also urged families to submit free-meal/lunch applications where eligible so the district can capture LCFF supplemental and concentration funds tied to the unduplicated pupil count.
The board discussed enrollment assumptions used in multi-year projections, noting that October 1 enrollment and average daily attendance are critical to revenue forecasts. Mesa said the district’s enrollment on the day of the presentation was roughly 10,186, slightly above last year’s encoded baseline, and that the district will present an updated enrollment forecast in January.
The certification vote and related budget motions were approved by the board during the meeting. Trustees also approved several related administrative items during the session, including a staff development waiver and contract amendments for facilities work; staff committed to follow up with additional reporting on joint‑use agreements and attendance follow‑up procedures.
