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Board certifies positive interim budget despite deficit-spending concerns
Summary
The district certified a positive second interim budget for 202425, noting an enrollment uptick and improved federal-aid audit results but lingering deficit spending driven by salary increases and federal-funding uncertainty estimated about $16 million.
The Los Banos Unified School District board approved the 202425 second interim budget and a positive certification after a detailed presentation by the district finance lead, who warned that multi-year uncertainties remain.
Finance presenter Miss Marcel summarized the snapshot through January: enrollment at 11,138 (a net increase that generated roughly $29,000), average daily attendance about 10,231, unrestricted expenditures near $153 million with salaries and benefits comprising roughly 76% of that figure, and restricted carryover of approximately $53 million. She said the district will submit a positive certification indicating it can meet its obligations this year and the next two years.
Marcel noted the district's budgeted beginning balance of $75 million, projected revenues of $227 million and projected expenditures of $277 million; after accounting for restricted funds and earmarks, she estimated an ending general-fund balance around $20 million. She cautioned that much of that balance is restricted: $5.9 million is restricted funding and roughly $8.4 million covers the required 3% reserve.
Board members pressed staff on deficit spending, rising pension, special-education and transportation costs, and the effect of federal funding changes. Dr. Marshall and other staff said roughly $16 million of federal funding factors into the budget picture and that volatility in state and federal decisions (and COLA assumptions) complicates multi-year planning.
"We will be submitting a positive certification for the second interim budget report," Marcel said. "Pension contributions continue to increase and special ed and transportation also continue to increase annually, but we are monitoring it on a daily basis."
After discussion the board voted to approve the second interim budget report by roll call.
