Board approves first interim budget showing modest unrestricted surplus

The Santa Ynez Valley Union High School District board voted to approve the 2024–25 first interim budget and the district's multi-year projections through 2026–27, after hearing a detailed presentation from district business staff.

Elise Alicia Lewis, the district's business official, told the board the first interim is the first budget document that reflects actual beginning balances and revised assumptions. "So the 1st interim budget is the 1st solid budget that we have for the fiscal year," she said, explaining the report shows a 5.8% overall revenue increase versus the adopted budget and a projected unrestricted surplus of about $57,000 where an original deficit nearly $500,000 had been forecast.

Lewis highlighted specific drivers of the change: an estimated property-tax increase of about $711,297 (roughly 4.5%), a one-time STRS adjustment of about $40,000, $18,000 in unexpected lease receipts, and increases in restricted federal funds including Title allocations and a carryover grant for the Pirate Academic Center. She noted unrestricted revenue rose approximately $899,470 versus the original plan, and unrestricted expenditures increased roughly $369,370 primarily for negotiated salary and benefit changes.

Board members asked about the district's minimum-fund-balance policy and bargaining-cycle risks. Lewis reminded the board that a board resolution sets a $3,000,000 minimum reserve and that the state-required minimum is 4% (she cited an example number of about $727,777). She also warned that future collective-bargaining settlements, which are settled only through 2024–25 at present, could change multiyear projections.

The motion to approve the first interim budget and projections passed by roll call; votes recorded in the minutes show aye votes from Mr. Johnson, Mr. Abara, Grace Velasquez, Ms. Noble, and Ms. Sheehy. The board will revisit reserve-level policy and long-range planning in coming meetings.