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Board approves 1st interim report; district maintains positive solvency despite enrollment dip
Summary
Assistant Superintendent Josh Quitterano presented the 2025–26 1st interim budget showing a small net restricted deficit but a positive certification that the district can meet obligations for the current and two subsequent years; trustees discussed enrollment declines, COLA impacts and lease revenue.
Assistant Superintendent of Business Services Josh Quitterano presented the district's 2025–26 1st interim report and recommended the board adopt a positive certification of fiscal solvency.
Quitterano summarized revenue and expense changes since the adopted budget, including LCFF changes tied to transitional kindergarten growth, $542,000 projected annual lease revenue from a partial Toyon site lease to Cadango, and the loss of prior lease revenue tied to Milpitas Christian School. He said census-day enrollment was 5,718 — about 65 students below the adopted budget projection — and that the district funds on ADA, not enrollment.
"We have a net result of a negative $1,100,000 (restricted) in 2025–26, but our unrestricted ending balance meets the 3% reserve requirement and we are issuing a positive certification," Quitterano said. He noted salaries and benefits account for about 87% of total expenses and discussed the timing of solar true‑up credits and lease accelerators that should improve balances in later years.
Trustees asked detailed questions about how COLA and ADA changes affect revenue, the timeline for solar savings and how lease revenues and evictions have altered projections. Quitterano said the governor's 2026 budget release will refine COLA assumptions and that staff will make further adjustments in the 2nd interim report.
After discussion, a trustee moved and the board approved the 1st interim report and positive certification by roll call vote.
