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Inglewood USD projects multi‑year deficits; business office recommends staged $5 million reductions
Summary
Assistant Superintendent Raphael Guzman presented the first interim budget showing a positive certification for the next two fiscal years but projected multi-year deficit spending and enrollment declines; business services proposed a fiscal stabilization plan with $5M reductions in 26–27 and 27–28 to preserve reserves.
The district’s business office delivered its first interim budget report for 2025–26 on Dec. 10, recommending a "positive" certification for the current and two subsequent fiscal years while warning that structural deficit trends require action to protect reserves.
Assistant Superintendent Raphael Guzman told the board the report includes updated figures through Oct. 31, 2025, and relies on assumptions including statutory COLA, pension cost projections and revised enrollment projections. Guzman said enrollment is projected to fall from about 5,981 in 2025–26 to 5,716 in 2026–27 and 5,578 in 2027–28 under current trends, which reduces the district’s major unrestricted revenue pool.
Guzman highlighted a positive cash position (about $122 million in cash at the end of October) and an increase in the unrestricted reserve from roughly $56 million to $70 million due to audited adjustments and captured one‑time funding. He cited a $4 million one‑time literacy grant tied to improved collection of unduplicated pupil counts and noted a prior expectation of $2 million in unrestricted funds that was reclassified as restricted.
However, multi‑year projections show rising deficit spending in later years unless structural changes occur. Guzman recommended a fiscal stabilization plan that phases in $5 million of reductions in 2026–27 and another $5 million in 2027–28 (with a suggested additional $5M in 2028–29 if needed) or equivalent revenue increases. He said the goal is to avoid a single, large reduction later that would more severely disrupt services and staffing.
Board members asked about high services costs (about $76M in services spending) and were told the largest drivers include outsourced trades and special‑education contracted services; staff proposed bringing some positions in‑house (electricians, behavioral aides) to reduce contracting costs and improve service delivery.
Guzman said next steps include monitoring the fiscal stabilization plan, updating enrollment and ADA projections, increasing ADA through outreach, and incorporating labor agreement changes into multi‑year projections.
