Antioch Unified projects $16 million ongoing shortfall; board hears cash-flow risk in 2028

Antioch Unified's business services team presented the district's 2026-27 preliminary budget and multi-year projection at a June 10 public hearing, warning trustees that the district faces a significant ongoing deficit absent further reductions.

Mia Conio, the presenter for business services, told the board that LCFF revenue accounts for roughly 73% of the district's general fund and that the district projects an unrestricted general fund ending balance of minus $6.3 million for 2026-27. "The unrestricted general fund is projected to end with a negative balance of 6.3 million," Conio said during the presentation. Staff also showed a restricted general fund balance of about $22.7 million, largely attributable to two-year ELOP grant funds that are legally restricted for expanded learning programs.

Staff said a projected $32 million in budget adjustments is needed across years to restore the state-required 3% reserve for economic uncertainty. The district reported that the board earlier approved $18.2 million in reductions and that additional savings remain under review; staff estimated the ongoing savings target at about $16 million for 2026-27 to achieve fiscal solvency.

Conio explained the difference between budget and cash flow and said an advance of property-tax receipts recognized earlier in the year improved August cash positions for 2026-27. She warned, however, that in the multi-year projection the district could face negative cash balances beginning April 2028 (projected roughly $6 million and increasing to about $20 million in May 2028) if the planned shortfalls in 2026-27 and 2027-28 are not addressed.

The presentation listed key assumptions used in projections: state COLA of 2.87% plus additional LCFF augmentation, modest ongoing enrollment declines (15,000 current students), step and benefit cost increases, and one-time revenues such as the learning recovery block grant. The district estimated total LCFF resources at about $226 million and identified federal programs (Title I, special education) and state categorical funds as other revenue sources.

Facilities and bond program staff also reported capital progress: $23.5 million invested in campuses, 31 projects completed, and 26 active projects in design or construction. Facilities staff noted summer construction schedules and a pending facility-master-plan update required for state funding eligibility; the district is exploring seismic mitigation funding for Antioch Middle School.

Board members asked technical questions about unduplicated pupil counts used for supplemental/concentration grants, whether foster-youth funding could be clawed back if a student exits foster status midyear (staff said allocations are not returned), and whether the state's on-behalf pension payments affect the district's reserve calculations. Staff explained GASB accounting requirements and said the on-behalf pension amounts are recorded without net fiscal impact but do alter the base totals used in reserve calculations.

Staff recommended the board adopt the 2026-27 budget at its June 17 meeting with continued monitoring and a fiscal-solvency plan to be developed in August/September. The presentation noted the district will file a negative certification unless additional ongoing reductions are identified.