Board accepts 2025–26 first interim budget; third-year projection shows qualified certification

Novato Unified's business office presented the 2025–26 First Interim budget report on Dec. 16, a statutory snapshot of the district's multiyear financial picture as of Oct. 31, 2025. The presentation explained certification categories (positive, qualified, negative), noted a $2,600,000 change from the adopted budget (about 1.8%), and said the district currently maintains the 3% unrestricted reserve in 2025–26 and 2026–27 but not in 2027–28 under current assumptions.

The presenter walked trustees through major assumptions, including a 2.3% cost-of-living adjustment (COLA) signed into law for 2025–26, the Department of Revenue's projection and differing LAO estimates, rising special-education contributions, and an ongoing strategy to use restricted one-time funds for eligible one-time expenses. On state funding, the presenter said Prop 98 estimates tied to tax revenue growth could add substantial one-time dollars: "We're seeing, the current estimates are somewhere in the network of 10 to 12,000,000,000 extra dollars for Prop 98, specifically," which could affect near-term certification but not provide a guaranteed ongoing solution. Trustees discussed budgeting complexity, and the board approved the First Interim report following a motion and second; the vote was recorded as unanimous with student-trustee participation.