Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the District Budget topic
No spam. Unsubscribe anytime.
District certifies positive second-interim despite near-term unrestricted deficit
Summary
The district filed a positive second-interim certification on March 12, 2025. Fiscal staff reported a $5.5 million unrestricted deficit in 2024–25 driven by low COLA and reduced funded ADA, with planned reductions expected to narrow deficits in 2025–26 and a projected modest surplus in 2026–27.
The Palos Verdes Peninsula Unified School District certified a positive second-interim report on March 12, indicating it expects to meet its financial obligations for the current fiscal year and the next two years while also flagging near-term challenges.
Fiscal Services Director presented the 2024–25 Second Interim update required by state law. The presentation noted a projected $5.5 million unrestricted deficit in 2024–25 driven mainly by a low cost-of-living adjustment (1.07% used in the presentation) and a decline in funded average daily attendance after COVID-era hold-harmless rules ended. Many of the 2024–25 shortfalls were tied to one-time timing differences and carryover expenditures, staff said.
The budget work includes reductions identified earlier (~$3 million), conservative enrollment assumptions, and careful monitoring of salary and benefits. The district projects a smaller deficit in 2025–26 and a modest surplus by 2026–27 under current assumptions, while continuing to monitor the state May revision and negotiations for bargaining units.
Staff emphasized that a large share of the general fund balance at the end of 2024–25 is restricted by prior-year grants and categorical funds. Administrators outlined next steps (May revision review, budget/LCAP work in April–June and budget adoption in June) and said they will continue to report to the board and public.
