District files positive 1st interim certification despite projected structural deficit

District fiscal staff presented the 1st interim financial report (snapshot through Oct. 31, 2025) and recommended a "positive" certification that the district can meet obligations this year and the next two years.

The presenter outlined major assumptions: LCFF-based revenue, an assumed COLA, pension contribution rates (CalSTRS 19.10%, CalPERS 26.81%), and a projected enrollment decline from about 7,038 students to roughly 6,496 by 2027–28. The staff presented general-fund revenue of approximately $158.5 million and projected general-fund expenditures near $187.1 million for the current year, producing a projected net decrease in fund balance of about $30.6 million. Because the district started with an unusually healthy beginning balance ($74.5 million), the presentation projected an ending unrestricted balance around $43.8 million, sufficient to meet the required 3% reserve.

The presenter summarized the multiyear projection and flagged top financial challenges including declining enrollment, federal/state funding uncertainty, special-education cost pressures and ongoing modernization expenditures. "Tonight, I'm presenting the 02/2526 1st interim financial report," the fiscal presenter said at the start of the item. Trustees discussed the assumptions and accepted the staff recommendation to file a positive certification; staff noted that the governor’s January budget proposal could alter assumptions for later interim reports.