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District reports about $7 million operating deficit in unaudited actuals; board to consider $6 million reductions for 2025‑26
Summary
The district presented FY23‑24 unaudited actuals showing roughly $195 million in revenue, about $202 million in expenses (an approximate $7 million deficit), an ending fund balance a little over $59 million, and a planned board resolution to adopt $6 million in 2025‑26 reductions.
District finance staff presented the FY23‑24 unaudited actuals and told the board the district received "a little over $195 million" in total revenue and recorded "a little over $202 million" in expenses, producing an approximate $7 million operating deficit for the year.
Staff summarized the components of the ending fund balance (reported as a little over $59 million), noting the district's 3% minimum reserve requirement, an additional 2% board target reserve, and restricted carryover balances that are committed for designated programs. Staff said much of the variance versus earlier projections was due to higher‑than‑expected one‑time revenue (CalSERVE/CalSHAPE grants and increased medical reimbursements), plus savings from vacant positions and departmental underspending.
To address multi‑year projected deficits, staff said the board will be asked to adopt a formal resolution to reduce the 2025‑26 budget by $6 million (the reduction was included in the adopted budget assumptions and must be formally approved). Auditors will review the financial statements; the first interim report will reflect updated attendance trends and may prompt additional adjustments.
The board approved the unaudited actuals report as presented during the consent/vote items later in the meeting. Staff said a detailed list of specific reduction proposals will be provided to the board at a future meeting for deliberation and potential action.
