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Paramount Unified projects multi-million-dollar deficits in multi-year projection; board accepts second interim report
Summary
Business services presented the second interim budget showing revenue of about $267 million and expenditures near $296 million, forecasting multi-year deficit spending and declining reserve percentages; the board accepted the second interim report and discussed mitigation options and staffing implications.
Paramount Unified School District's business office told the board on March 12 that declining enrollment and the end of one-time funding are producing multi-year budget pressure, with projections that expenditures will outpace revenues in the near term.
District staff presented the second interim report for 2024–25 and multi-year projections. The presentation listed total revenue of approximately $267 million and total expenditures of about $296 million, producing a net reduction in fund balance. Staff showed that unrestricted ending fund-balance projections remain positive in the out year but that deficit spending is projected in the near term (the presentation cited a projected unrestricted deficit for the current year of about $9.4 million, $16.7 million the following year, then $2.7 million thereafter). The district noted factors including declining average daily attendance (ADA), the approaching end of one-time grants, and the limited scope of salary growth assumed in the projection (steps and columns only unless the board authorizes enhancements).
Business services described the arithmetic: for grades four to six, a per-student funding example showed per-ADA funding moving from about $1,069 last year to approximately $1,177 this year (reflecting a 1.07% COLA), and projected ADA decline translated to an estimated loss of roughly $1.7 million from one year to the next in the example shown. Presenters said they are monitoring federal-grant uncertainty and federal tariffs that could affect costs.
The board discussed mitigation strategies and asked staff to continue exploring alternatives to layoffs where possible. The presentation included a multi-year graph showing reserves declining from about 42% of expenditures in the current year to an estimated 22% in the third year if no additional measures are taken. Staff said plans and actions are in progress to slow deficit spending.
The transcript shows the board later moved the second interim report through the action calendar; the action section recorded motions to accept the report. Board members acknowledged the district's efforts to minimize job losses but warned that structural revenue changes will require tough choices and continued monitoring.
The meeting continued into consent items and additional action votes after the budget presentation.
