Travis Unified reports $7.2 million general‑fund gap and directs staff to identify $2 million in reductions

Chief business officer Gabe presented the 2024‑25 first interim budget showing a projected $7.2 million deficit across the restricted and unrestricted general fund, driven primarily by salaries and benefits and increases in special education expenditures. The district reported an anticipated $10.035 million unrestricted ending fund balance after managed shifts, but staff explained the need to be deliberate because reserves are forecast to decline to the state‑required minimum by 2027‑28 if no action is taken.

Gabe said staff achieved an improved interim position by cautious hiring/attrition and by shifting allowable one‑time restricted grants (such as learning recovery funds) to cover specific expenditures this year. He stressed that several capital projects — including sixth‑grade consolidation and other bond‑funded improvements — are funded from developer fees (Fund 25) or bond proceeds and will not draw from the general operating budget.

Given the County Office of Education oversight and the deficit projections, the board approved a resolution directing staff to prepare a $2 million reductions list (to be presented at second interim) and to bring every proposed reduction to the board for approval. "We will bring everything to the board... a $2 million punch list that we need to approve," Gabe stated. Trustees debated timing and the importance of a full board but ultimately voted to approve the direction.

The board also approved the first interim budget report as required by state law. Staff said the district expects to reach a structural equilibrium by 2027‑28 if enrollment and revenue trends align with forecasts.

Next steps: staff will work with site and department administrators and bargaining units to produce a prioritized list of proposed reductions and efficiencies totaling approximately $2 million for board review at the second‑interim budget meeting.