Board approves 2025–26 second interim budget, projects $450,621 operating deficit

The Santa Ynez Valley Union High School District board on March 10 approved the district's 2025–26 second interim budget and related multi-year projections after a presentation from district finance staff. The board approved the motion by roll call; all members voted "aye."

Alicia, the district's finance presenter, told trustees that after updating revenue and expenditure projections the district is "we're now projecting a 450,621 operating deficit," but emphasized the district still projects an unrestricted ending fund balance of about $7.1 million — roughly 4.5–5 months of operating cash. She framed the deficit as substantially reduced from prior years due to deliberate deficit-reduction measures and additional one-time and restricted revenues.

The presentation attributed the revenue uptick (about $314,000 versus the 1st interim) to an unexpected CTEIG award, additional state learning-recovery allocations and higher property-tax collections; expenditure increases were driven primarily by negotiated salary settlements, related benefits and restricted-program spending tied to new grants. Alicia noted that restricted grant dollars must be spent and recorded in the year they are received, which increases restricted expenditures alongside the revenue.

Board discussion focused on reserve policy and long-term planning. Finance staff recommended shifting the district's board-minimum reserve from a static $3 million to a percentage-based target phased up to 25% (about three months of operating expenses) to provide greater long-term stability. Trustees asked questions about the treatment of restricted versus unrestricted funds and the projected multiyear impact of bringing special education services in-house.

The board's vote to approve the budget followed the presentation and discussion and was recorded by roll call.