Middletown Unified board approves 1st interim budget amid debate over six position cuts and a $500,000 special-education placement

CBO Tanya presented Middletown Unified's 1st interim budget: the district received a positive budget certification but projects continued deficit spending that would deplete fund balances by the end of the multi-year projection period (FY 26-27) unless corrective action is taken.

Tanya told the board enrollment is 1,453 and estimated attendance (ADA) is about 92 percent. She said restricted and federal carryovers identified since budget adoption required adding revenue and corresponding expenditures to the 1st interim. She identified a single non-public school placement that has cost nearly $500,000 and will be ongoing for that student, with some possibility of partial reimbursement through the SELPA's extraordinary-cost pool.

Trustees pressed for more analysis of where additional savings might be found beyond personnel reductions. Several trustees said they want a fresh review of the deficit-elimination plan, while others argued the board must act now to avoid a qualified certification and additional reporting requirements. "If we did not eliminate those positions in the budget, we would be qualified," Tanya said, explaining the consequences of a qualified certification.

After extended discussion, a motion to approve the 1st interim report "as presented" was moved and seconded and passed with a tally of three yes, one no and one abstention. Trustees and staff emphasized the budget remains a working document and that adjustments could be made before the 2nd interim reporting period if alternative savings are identified.