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Merced Union HSD financial briefing: one-time funds mask structural revenue pressures
Summary
Finance staff told trustees the district's 2024-25 un-audited actuals show a $36 million restricted balance—about $20 million remaining after prior spending—with roughly $14 million of restricted funds set to expire in two years; LCFF baseline is flattening and enrollment dipped about 50 students.
District finance staff presented the Merced Union High School District's 2024-25 un-audited actuals to trustees on Aug. 28 and warned that one-time federal and state funding has temporarily increased restricted balances while baseline LCFF revenue is flattening.
Presenters said the district's fund balance totaled about $36 million, of which roughly $20 million remains and approximately $14 million must be spent within two years. Officials emphasized that much of the increase reflects restricted, one-time funds such as CTE grants and community schools allocations, which distort personnel ratios when compared with baseline funding.
The district reported enrollment down about 50 students from the prior year—equal to roughly $1 million in recurring revenue—and outlined contingencies for federal funding uncertainty tied to possible rescissions if Congress and the administration alter appropriations. Finance staff said the district will prepare two budget scenarios for the coming year: a baseline plan and a contingency plan that assumes a material federal cut.
Other highlights: the nutrition services fund improved markedly, with reserves near $9.1 million after better meal counting and reimbursements; transportation has about $4.1 million available and the district plans to begin limited EV bus acquisition and charging infrastructure work but noted constraints for long-distance events; and deferred maintenance and developer fees are earmarked for campus projects including the business park and stadiums.
Trustees voted to accept the 2024-25 un-audited actuals report in a unanimous action. No immediate cuts were announced, but staff said the coming year will require careful planning as one-time funds trend toward expiration.
