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Covina-Valley Unified board certifies positive financial position amid projection of multi-year deficits
Summary
School finance staff presented the district's second interim report showing a positive certification for 2025-26, while forecasting multi-year deficit spending and a decline in the unduplicated pupil percentage that reduces LCFF revenue; the board unanimously approved the certification.
The Covina-Valley Unified School District Board approved the district's 2025-26 second interim financial report and certified a —positive— fiscal status for the current year and the next two fiscal years.
District finance staff told the board the report reflects the district's position through Jan. 31 and relies on several key assumptions, including a 2.3% COLA for 2025-26 and a projected decline in the unduplicated pupil percentage (UPP) to 64.37 percent. Staff said the drop in UPP will reduce supplemental concentration grant funding and estimated a $1.2 million to $1.6 million annual revenue decline tied to that shift.
Presenters outlined staffing assumptions (a net increase of one FTE teacher and roughly 2.78 classified FTE) and projected multi-year deficit spending that would draw reserves to the required minimum by 2027-28 without corrective measures. The presentation also noted potential one-time funding in the governor's proposal that was excluded from the report because of uncertainty.
After the presentation, the board voted unanimously to approve the second interim report and submit it to the County Office of Education by March 17. Staff said they will continue monitoring state budget developments and incorporate updates as the 2026-27 adopted budget is prepared.
The board recorded the certification by roll call; staff emphasized that ongoing monitoring and potential expenditure adjustments will be needed to avoid long-term reserve depletion.
