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Paramount Unified budget presentation warns of multi‑year deficits as enrollment falls
Summary
Business services staff told the board that declining enrollment and one‑time funding expirations could produce multi‑year deficit spending — a projected $6 million shortfall this year rising to $18 million next year and continued risk after that.
Paramount Unified finance staff on June 11 presented estimated actuals for 2024–25 and a tentative budget for 2025–26 that project growing multi‑year deficit spending largely driven by declining enrollment.
The district reported combined revenues of about $261 million and projected general‑fund expenditures near $284 million for 2025–26. Presenters said the state COLA is confirmed at 2.3% while average daily attendance (ADA) and enrollment remain below pre‑COVID levels. Because funding is ADA‑based and enrollment is falling, business services staff said the district is projected to lose $3.4 million going into next year after accounting for COLA; net deficit spending is projected at about $6 million for the current year and $18 million for 2025–26, with multi‑year risk rising in subsequent years.
Presenters also noted uncertainty around federal grants including Title III (estimated district receipt roughly $342,000) and growing personnel‑related costs, including settled salary enhancements and rising special‑education contributions. The district shared a multi‑year projection showing reserves declining and the risk of exhausting the fund balance under current assumptions.
Patricia Tu, a presenter in business services, summarized the urgency: "With that drop, even including the 2.3% increase... we're actually projected to lose $3.4 million going into next year." Board members requested data on student migration to other districts and discussed long‑term reserve levels; staff said the legally required minimum reserve for unified districts is 3%, but noted that the district’s one‑month operational cost would be about $19 million, making a 3% reserve insufficient as a practical buffer.
The board held a public hearing on the tentative budget and approved related resolutions later in the meeting; staff will continue to refine projections as state and federal information becomes available.
