Perris Union High trustees certify second‑interim budget and acknowledge multi‑year deficit projections

The Perris Union High School District board on March 12 approved a positive certification of the district's 2024‑25 second‑interim financial report while acknowledging multi‑year projected deficits and discussing a county‑recommended resolution recognizing deficit spending.

Business Services presented the second interim report and multi‑year projections required by state law. The presentation showed an audited unrestricted ending fund balance of $37.6 million for the prior year, a projected $35.9 million for the current year, $28.3 million for 2025‑26 and about $16.5 million for 2026‑27 under current assumptions. Presenters said the district projects a $1.7 million deficit for 2024‑25, driven by declining enrollment and expenditure growth that outpaces COLA adjustments.

Trustees debated two attachments included with the agenda: a county office letter and a sample resolution (Resolution 18‑24‑25) that recognizes deficit spending and the need for stabilization measures. Public commenter Jason Miller had urged the board to approve the second‑interim report itself and consider the attachments separately; trustees subsequently amended the motion to remove the county letter and resolution from the vote and then approved the interim report's positive certification by a 5‑0 roll call.

Business Services noted several contributing factors: a reported enrollment decline (the presentation referenced a 128‑student drop compared with the prior certified count), an unduplicated pupil percentage that increased slightly (reported as about 74.13%), and higher than projected interest revenue that modestly improved near‑term results. The staff recommended continuing efforts to increase attendance (reported at 88.6%) and to identify where expenditures can be realigned before the June budget adoption.

Votes at a glance (select items from March 12): - Second interim financial report: positive certification approved after amendment (vote recorded 5‑0). - Resolution 18‑24‑25 (acknowledging deficit spending): attachments were removed from the interim vote after an amendment; board discussed language and county guidance. - Memorandum of Understanding with CSEA (community services job family): approved, vote 4‑1. - Audit services contract (CWDL) estimated $61,500: approved 5‑0; trustees asked auditors to examine deficit drivers and restricted vs. unrestricted balances. - Purchase authorizations (purchase orders above $50,000, capital equipment above $10,000) and an E‑rate Category 2 RFP award for access‑point installation: each approved 5‑0.

Why it matters: The interim certification affirms that, under current assumptions, district leadership projects it can meet financial obligations for the current and the two subsequent fiscal years but also flags a multi‑year decline in reserves that will require actions in the June budget. Trustees emphasized enrollment and attendance strategies, close monitoring of expenditures and ongoing stakeholder collaboration.

What’s next: Staff will present a June budget for adoption (public hearings scheduled in June), continue to refine projections after the state May revision and return with more detailed analysis of contributions, indirect costs and program‑level spending as requested by trustees.