Superintendent warns enrollment dip and rising insurance costs will hit district budget

Superintendent Richard Rivera opened the district report by saying enrollment is down from last year and that the decline is already producing a measurable budget impact. "The impact on the budget is about 2,500,000," Rivera told the board, noting last year's ADA and per-ADA funding levels and a deficit carryover tied to lower enrollment and attendance trends.

Rivera also reported district facilities planning: the old Central Middle School gym — about 80 years old — has been approved for demolition (expected to take place about February) and the district plans to place a new cafeteria on that site pending a bond election. The district is building a new agricultural farm tied to the bond program with an expected completion of January 2027; administration said the city is interested in acquiring about 7.6 acres of that property for a fire and police substation once appraisals and approvals are final. Rivera flagged self-funded health insurance trends as a serious concern: three months of claims and Rx activity have left a shortfall approaching multiple millions, and administration projected a possible $4,000,000 deficit for the plan this year if current trends continue.

Trustees pressed for more detail on the insurance figures, rebates and true-ups; administrators said a true-up from Blue Cross/Prime produced a prior-year credit and that staff is expecting reconciliation by February. Trustees also raised the prospect of exploring HMO options, pharmacy-channel changes and wellness programs as cost‑mitigation options.