Board adopts second interim budget showing multiyear stability; reserves set aside for negotiations and SPED costs

The Auburn Union School District board approved the district's second interim budget report after a detailed presentation from business staff covering July 1 through Jan. 31 and projecting the district's financial position through the next three fiscal years.

Staff explained the budgeting framework: the district uses a three-year projection and three-year averaging for ADA (the district's ADA for funding purposes was reported as 1,304), and the second interim captures actuals through January and projects to June 30. The presenter said combined district revenue totaled about $26.1 million and combined expenditures were about $27.0 million, noting that federal revenue comprises around 3.6% of the budget and that unrestricted LCFF resources account for the large share of operational funding.

District business staff warned that state-level assumptions (including a recommended 2.41% statutory COLA and potential one-time block grants) affect projections and counseled prudence for ongoing commitments. The presentation described a $950,000 one-time discretionary allocation projected for 2026-27 that is not included as ongoing revenue, and explained that one-time funds should not be committed to continuous expenses. The district projected it would maintain a 3% minimum reserve, with additional assignments of $700,000 for negotiations and increased special-education costs.

The presenter concluded the multiyear projections remain financially stable under current assumptions and the board approved the second interim report in open session.