Gilroy Unified certifies second interim budget as 'positive' amid enrollment decline

Gilroy Unified School District staff presented the 2024–25 second interim financial report and a multi‑year projection, and the board certified a "positive" interim status on March 20.

Director of Fiscal Services Kimberly Smith and Assistant Superintendent Paul Winslow walked trustees through the district’s revenue and expenditure picture: total general‑fund revenues (restricted and unrestricted) of roughly $178.8 million and total general‑fund expenditures of about $200.1 million. Smith noted that a sizeable portion of the district’s carryover consists of one‑time grants such as the art/music block and learning recovery funds; when those are separated from ongoing obligations, unrestricted compensation represents a large share of recurring expenditures.

Winslow highlighted enrollment‑driven budget pressure. The district projects declines in average daily attendance (ADA) that create placeholders for staffing reductions in the multi‑year projection (examples cited: $480,000 in staffing placeholders for 2025‑26 and $720,000 for 2026‑27). He warned that staffing formulas capture roughly 25% of revenue loss tied to ADA changes and that the district would draw on reserves in the near term if projections hold.

Trustees asked about federal funding risks and the districts’ assumptions for expulsions and county‑operated programs; staff said the district budgets conservatively for slot purchases (for example, reserve funding for community‑day school slots at a higher per‑slot cost if purchased ad hoc).

After questions, the board moved, seconded and approved the second interim financial report with a positive certification. Staff said they will continue to monitor the May state budget revision and bring the budget and LCAP for public hearing in late May, with final adoption in June.