Chawanakee Unified board approves Second Interim as CBO warns 'There is cause for concern'

The Chawanakee Unified School District Board of Trustees on March 11 approved the Second Interim budget for 2024–25, voting unanimously to file a Positive Certification even as district financial staff warned of ongoing shortfalls.

Chief Business Officer Melissa Kielpinski told trustees "There is cause for concern." She reported General Fund revenues of $18,788,564 (an increase of $112,517) against expenditures of $19,654,724 (an increase of $701,064), producing a net decrease in fund balance of $1,145,160. Kielpinski said the district's unrestricted reserves total $776,066, with $598,012 (3%) held for economic uncertainties and a restricted reserve of $567,069.

Kielpinski said rising personnel costs (step-and-column increases), higher prices for goods and services, and facility operational costs outpaced projected revenue growth under the state's Local Control Funding Formula (LCFF). She urged the board to watch the governor's May Revision and the final state budget in June for changes to the Cost-of-Living Adjustment (COLA) and any trailer bill impacts.

During the public meeting the board unanimously moved to accept the report on a motion from Jessie Hutchens, seconded by Jack Thornburg. The approval signals the district will proceed on a Positive Certification path while continuing to review options and monitor state actions.

Next steps cited by staff include continued enrollment monitoring (the district said projections are conservative), exploring an exemption to a June deferral of state apportionment, and department-level collaboration on cost-control measures.