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Ventura Unified certifies second interim budget; staff warns of an $8 million multi-year shortfall and outlines TRAN option; summer programs previewed
Summary
Business Services certified a positive second interim with a 6% reserve but projected an $8 million multi-year deficit after reductions; staff presented a first read of a Tax Revenue Anticipation Note as a cash-flow option and previewed summer programming that will be partially reimbursed by Learn for Life.
Ventura Unified's Business Services staff presented the district's 2024-25 second interim financial report, which the board certified as "positive" while staff warned of multi-year deficits and near-term cash-flow risk.
Key budget items: staff said the district will maintain a 6% available reserve in the near term but projected a structural deficit after three years. With the reductions approved by the board (estimated at roughly $5.5 million), the district still faces an approximate $8 million shortfall on multi-year projections unless additional savings or revenue materialize.
Enrollment trends: presenters cited a continuing enrollment decline (staff used a working assumption of roughly 200-300 fewer students per year) and discussed how that, together with cost-of-living adjustments and health-and-welfare rates, factors into LCFF and general-fund projections.
Cash-flow risk and TRAN: staff gave a first read on a Tax Revenue Anticipation Note (TRAN) to cover expected cash shortfalls in December and April when property-tax apportionments arrive. Staff said internal interfund borrowing (building fund, adult ed, capital facilities) would be the first option and that issuing a TRAN would be a last-resort insurance policy. Staff estimated a TRAN issuance cost (example) of approximately $70,000 for issuance plus interest (an example scenario showed nearly $997,000 interest on a $20 million issuance, depending on market rates), and said the TRAN would be presented for action if internal borrowing is insufficient at adopted budget time.
Summer programming: Educational Services reviewed 2024 summer work and previewed the next summer. The district will continue a partnership with Learn for Life for morning academic sessions and ELO-P-funded afternoon camps focused on unduplicated students. Staff said Learn for Life reimbursed a substantial portion last year (staff cited amounts in the hundreds of thousands) but that the district still bore some costs for ESY and other small-group needs; preliminary estimates for reimbursement this year were presented and staff signaled there may still be a modest general-fund overage.
What trustees asked for: trustees requested a site-level breakdown of positions funded by restricted sources (Prop 28, parcel tax, grant carryover) and asked staff to produce clearer adopted-budget comparisons and lists of positions tied to one-time funding so the board can evaluate restoration options if new revenue appears.
Next steps: the board approved the second interim report. Staff will continue to refine adopted-budget assumptions following the state May revise and will return with any necessary TRAN action at budget adoption if internal borrowing options are exhausted.
