Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Calexico Unified approves second interim report as district projects multi-year deficits and staffing adjustments
Summary
Trustees approved the district's second interim financial report after hearing that declining average daily attendance and rising pension and insurance costs are driving multi-year deficit spending; the report projects roughly $4 million less in LCFF revenue next year and steps to reduce staffing and operating costs.
Calexico Unified School District trustees voted unanimously to adopt the district's second interim financial report, after a presentation showing continuing revenue pressure from declining average daily attendance and growing fixed costs.
Mr. Delator, who presented the 139-page report, told the board that "the ADA alone for us means about $4 million less in LCFF revenue for the next fiscal year." He also cited rising pension contributions, saying the district is contributing "27.05%," and noted a workers'compensation rate shown in the report around "7.2886%." The presentation included an explanation that the report compares actual expenditures through Jan. 31 and projects out the remainder of the fiscal year using multiple assumptions.
The report showed an increase of about $6.2 million in projected revenue linked to community schools and other targeted funding streams, but Mr. Delator said the district still projects deficit spending across multiple years. He described measures the district will use to address the shortfall, including staffing-ratio adjustments, vacancy analysis and targeted reductions to operating expenditures. The district listed prior reductions (for earlier years: 11 certificated and 20'24 classified positions) and said it plans further adjustments (about 29 certificated and 24 classified positions in the projection for 25'26).
Board members asked questions and then moved to approve the report. The motion to approve the fiscal year 2024'25 second interim financial report came from Mr. Ainia and was seconded by Miss Calderon; the board recorded a 5'00 vote.
Why it matters: LCFF funding and average daily attendance drive most general fund revenue for the district, so continued declines in attendance and enrollment tighten the district's ability to sustain current staffing and programs. The board was told the district currently maintains cash reserves equivalent to about three to four months of expenditures and monthly expenditures run roughly $17 million.
What happens next: District staff said they will continue to monitor final state budget updates, refine assumptions for upcoming fiscal years and present corrective staffing and expenditure proposals as needed to reduce deficit spending.
