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Board hears finance briefing after audit shows multimillion-dollar deficit; staff point to ADA recovery and governor proposal
Summary
At the meeting trustees reviewed the independent audit showing significant deficit spending and heard staff say the district is working on ADA recovery, a fiscal stabilization plan and expects a $512-per-ADA discretionary allocation from the governor.
Trustees discussed the district's independent audit for the fiscal year ending June 30, 2025 and pressed finance staff on the magnitude and recovery strategy for a multi‑million‑dollar shortfall.
During the consent-agenda discussion Trustee Quy Nguyen asked, "So we are deficit spent spending by $9,000,000?" Finance staff confirmed the district is running a significant deficit and said staff are finalizing a second interim report to present March 4 and will update the fiscal stabilization plan. Staff said the district is working to claim ADA recovery funds and other one‑time sources to improve the near‑term position.
Finance staff highlighted several moving parts that will affect the 2nd interim, including anticipated raises under union agreements, potential retirements, and a one‑time discretionary allocation from the governor. The staff member said the governor's clarification indicates an anticipated $512 per funded ADA — "that's about $3,500,000 that we didn't plan for," a finance official said, using fund ADA of roughly 7,000 to estimate revenue.
Trustees asked follow-up questions about reserve levels, the timeline for the ADA claims (the PADC system must reopen), and the possibility of a facilities bond in November to alleviate general-fund pressure. Board members directed staff to provide updated numbers in the March interim and to continue work on version 3 of the fiscal stabilization plan.
The board approved the consent item acknowledging the audit by voice vote 5–0.
