District presents 1st interim budget showing modest deficit spending; staff recommend positive certification

District staff presented the 1st interim budget comparison (adopted budget vs. actuals through Oct. 31) and walked trustees through revenue and expenditure changes. Presenter (speaker 3) said the district is currently modeling deficit spending of roughly $26,000 for 2024–25, rising to about $66,000 in 2025–26 and $73,000 in 2026–27 if current programs and spending continue without cuts. The presenter explained much of the change is timing and the need to move some restricted expenditures into unrestricted accounts because restricted grants have expiration timelines.

The presentation included more granular changes: LCFF/property-tax projections fell by about $31,000; federal revenues rose ~$23,000 tied to an AV project; other state revenue rose ~$87,000 related to the water-well project; local revenue increased ~$158,000 because Lakeside Middle School enrollment came in higher than expected and LPEF donations were above projections. The presenter also highlighted a $100,000 Children’s Behavioral Health Initiative grant the district received for mental-health services.

Trustees asked detailed questions about the calculations, the mix of restricted vs. unrestricted funds, contractor cost pressures and the effects of any salary increases. Staff showed a 1% salary-increase projection that would cost about $54,557 total across certificated, classified and administrator groups. Despite the projected deficits in the model, staff recommended a positive certification because projected reserves remain positive over the three-year horizon; the board moved and approved the 1st interim budget report.