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Board certifies positive financial outlook while planning to use reserves to cover a planned deficit
Summary
The board approved the districts 2nd interim report and a positive certification. Staff projected a FY25-26 general-fund deficit driven by one-time strategic spending (~$30M total, ~$20M unrestricted) and outlined a fiscal-stabilization plan emphasizing attrition, contracting controls and ADA recovery.
District finance staff presented the February 2026 2nd interim financial report and a multi-year projection through 2027-28, and trustees voted to adopt a positive certification.
"This deficit is largely intentional and planned, reflecting the strategic use of reserves and one-time resources as the district transitions towards aligning staffing with student enrollment," said the assistant superintendent of business during the presentation. The district projected roughly $160 million in revenues and $190 million in expenditures for FY2025-26, producing a $30 million general-fund deficit (about $20 million of that unrestricted). Staff emphasized the plan to protect the statutory reserve, seek $8 million in recoverable ADA, tighten contract and overtime controls, and use attrition and reassignment to avoid layoffs where possible.
Trustees pressed for the scale of possible personnel changes and were told the district expects to rely first on attrition and administrative reductions; staff estimated the projection equates roughly to the funding for about 15 certificated and 15 classified positions across the multi-year period, while stressing that final staffing decisions will depend on updated May Revision state estimates and local enrollment trends. The board approved the 2nd interim and positive certification by unanimous vote.
