Cloverdale Unified Board approves $1.4 million cuts and certifies first interim as positive amid thin reserves

The Cloverdale Unified School District Board of Trustees on Wednesday approved a resolution identifying about $1.4 million in budget reductions and certified the district’s 2024–25 First Interim financial report as "Positive," after an extended presentation on declining revenues and rising personnel costs.

Chief financial staff told the board the district faces a structural shortfall after one‑time state funds expire and enrolled attendance funding fell, creating a projected structural deficit of about $230,000 on top of the loss of one‑time funds. "In a nutshell we have to cut 1.4 million from the budget roughly to meet the 3%," a staff presenter said, noting the reductions are intended to secure the Sonoma County Office of Education’s acceptance of the district’s multi‑year outlook.

The presentation described three central pressures: a decline in funded average daily attendance (ADA) as the state phases out pandemic-era hold‑harmless funding; the expiration of recurring one‑time grants that had temporarily supported staff positions; and higher ongoing personnel costs including step increases and retirement/benefit rates. Staff said salaries and benefits account for roughly 90% of the district’s unrestricted budget and cited rising CalSTRS/CalPERS employer rates as a major long‑term cost driver.

Board members and staff said the county office required evidence of concrete steps to restore at least a 3% unrestricted reserve. The staff asked the board to formally commit to the identified reductions for 2025–26 and to include them in the 2024–25 first interim reporting cycle. "The county office is looking for confirmation from the board and the commitment to understand we have a problem on our hands and that you are committed to making these cuts," a staff member told trustees.

Trustees stressed the difficulty of further cuts and the potential impact on programs and services. "I feel like we need to cut more than $1.4 million," one trustee said, urging a prioritized list of site‑level reductions and replacement‑cost estimates for deferred maintenance, technology and other capital items. Staff replied that deeper cuts in a single year would be difficult because many employees are on contracts and some reductions are already in progress through unfilled vacancies.

After discussion, the board voted to approve Resolution 2259 identifying the approximate $1.4 million in reductions and directed staff to include those reductions in the first interim materials. Trustees then voted to certify the district’s First Interim report as Positive; staff cautioned the certification depends on the cuts and that the district’s margins remain "very thin." The First Interim projection included assumptions about future COLA and enrollment and carried material risks: the staff noted only about $4,790 remained unencumbered in the supply budget within a roughly $22 million general fund.

What happens next: staff said January P1 attendance reporting and the governor’s January budget release will provide additional data; the board will review a second interim report in March. Staff also committed to bring detailed site‑by‑site options, current replacement cost estimates for capital items and clearer lists of proposed reductions to future agenda items.

Vote and formal actions: the board approved Resolution 2259 to identify budget reductions and later approved the 2024–25 First Interim report as Positive. Detailed vote tallies were recorded by voice; the motions carried with no recorded dissent on the floor.