District staff outline $49M planned deficit for 2025–26, set aside $2.9M for SMIA settlement

District business officials presented the 2025–26 adoption budget at the June 11 board meeting, outlining assumptions, multi‑year projections and staffing changes and answering board questions about long‑term solvency.

The presentation explained the budgeting assumptions used for 2025–26, including projected enrollment and funded ADA, statutory benefit rates, step and column increases and the inclusion of one‑time expenditures. Staff reported an estimated $49 million deficit for 2025–26 (unrestricted $32.6M, restricted $16.4M) driven in part by planned one‑time spending and carryover items; staff said about $32 million of the deficit reflected one‑time expenditures funded from fund balance.

Mr. King reviewed multi‑year projections showing a lower deficit in 2026–27 as one‑time items are removed, and then a projected increase in 2027–28 tied to an $8.4 million curriculum adoption for ELA. Staffing additions budgeted for 2025–26 included 12 elementary teachers, three junior high teachers and 27 full‑time‑equivalent special education positions (including speech, mild/mod, psychologists and behavior analysts).

During the presentation staff noted the 2025–26 SMIA bargaining settlement was not included in the initial adoption budget but that a $2.9 million set‑aside had been recorded in fund balance to cover the settlement. Mr. King summarized that the district is dependent on state funding (about 88% of revenue) but can meet obligations for the next two to three years under current assumptions, while acknowledging risks from one‑time resource reliance and statewide fiscal uncertainty.

The board acknowledged receipt of the budget review and directed administration to return with the budget for action on June 25, after county review and incorporation of any final adjustments.