District budget presentation flags enrollment decline, short‑term cash risks

District business staff presented the 2025–26 budget and multi‑year projection during the public hearing, saying the budget as proposed meets the district's required reserve but depends on temporary resources. "So each year we're spending more than we're receiving in revenue," the business lead said, warning that ongoing deficit spending has reduced the fund balance.

The presentation called out several specific pressures: a $130,000 decrease in comparative revenue, a planned withdrawal from the PARS/OPEB retiree trust to offset retiree benefit costs, and expense increases including legal fees (noted to be $162,000 this year versus roughly $35,000 in prior years), higher electricity bills and increased IEP substitute costs. The presenter said the district's P2 ADA used in funding calculations was 732 and current enrollment projections for next year were lower than current enrollment, which reduces LCFF funding. "If they do deferrals... we would not have enough cash on hand," the presenter added, flagging potential shortfalls in 2026–27 without program reductions or additional state funding.

Board members asked for follow‑up detail on several line items and a schedule for budget revisions; staff said revisions and final documents will be posted before adoption at the next meeting. The board conducted the required public hearing on the budget and moved forward with the adoption timeline. The presentation included a reminder that Governor's budget actions and state deferrals remain key external risks to the district's cash flow.