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Sequoia Union trustees approve second interim report; reserve meets 8% board requirement
Summary
Trustees unanimously approved the district's 2024–25 second interim report showing a $44 million ending fund balance, an 8% reserve (~$22 million), a $4 million assignment for potential liabilities and multi-year projections that rely on property-tax and enrollment assumptions.
The Sequoia Union High School District board unanimously approved the 2024–25 second interim financial report on March 25 after a staff presentation summarizing revenue, expenditures and multi-year projections.
Staff reported an ending general fund balance of $44 million and said the district maintains a reserve equal to 8% of general-fund expenditures (about $22 million), meeting board policy requirements. Staff also said the district has assigned roughly $4 million for potential litigation and related liabilities and that restricted funds total about $16 million.
Key budget drivers highlighted by staff included certified P1 attendance (ADA) updates that reduced state funding and in-loop property-tax transfers compared with the first interim, lower-than-expected COLA assumptions (governor-funded COLA of 2.43% reflected), and employer retirement cost changes for STRS/PERS that will require the general fund to absorb roughly $140,000 in 2025–26 and about $182,000 in 2026–27 under current assumptions. Staff said total federal funds received are about $3 million and that one-time grants (including a Golden State Pathway grant) will expire over the next three years.
The presentation noted two charter-transfer effects: a $1.6 million reduction in charter in-lieu transfers driven by declining charter enrollment and a related $1.3 million impact from in-loop property-tax adjustments; staff said the recently announced Everest charter closure (communicated to the district after the March 3 finalization of the second interim) will be incorporated into estimated actuals once county data are updated.
On expenditures, staff said salaries and benefits represent roughly 80% of the budget; operating expenses account for about 12%. The multi-year projection shows the district continuing to deficit-spend in 2025–26 and 2026–27 as one-time funds are spent down, but not at the current-year rate. Staff stressed the need to monitor property-tax projections, eventual May revise state budget actions and the expiration of one-time grants (Prop. 30 noted to expire in 2030).
Trustees asked questions about charter-in-lieu transfers for out-of-district charters and about how the reserve and projections incorporate declining ADA at specific sites. Staff confirmed the projection includes the charter transfer and that the district will continue to watch enrollment and tax assumptions between P2 certification and the adopted budget in June.
The board voted to approve the second interim report on a roll call after a motion and second; trustees and student trustees recorded unanimous support with one member absent.
