Stockton Unified adopts second interim budget with positive certification despite projected structural pressure, 6-1

The Stockton Unified School District Board of Trustees approved the district'9s second interim budget report, receiving a presentation from Chief Business Officer Joanne Morris that outlined current fiscal projections and a multi-year outlook.

Morris told trustees 2nd interim summarizes actuals through Jan. 31 and assumptions to June 30. She said FY24-25 revenue is approximately $494 million and expenditures are forecast at about $400 million; the district reported a negative $14 million plan deficit driven largely by the expiration of one-time ESSER funds and required contributions to restricted funds. After planned internal fund transfers (notably a temporary movement from Fund 17), Morris said the sustainable ongoing general-fund balance is closer to $6 million and cautioned the board against treating the larger one-time balance as an ongoing source for new commitments.

Key pressures flagged in the presentation included declining enrollment (which reduces ADA-based state funding), rising utilities and supplies costs, and an increased special-education contribution. Morris said ESSER funds are fully spent and the district'9s multi-year projections exclude new settlements or ongoing commitments.

Trustees asked for a three-year enrollment trend and a clearer view of restricted vs. unrestricted totals. The business officer provided the combined total budget (restricted plus unrestricted) as $833,195,000 when asked.

On a roll-call vote the motion to accept the 2nd interim report passed 6-1, with Trustee Angel Ann Flores casting the lone no vote.

What happens next: The board approved the interim report; staff will include enrollment trend data and continue monitoring state and federal budget developments and any impacts on the district'9s multi-year projections.