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Natomas Unified budget presentation flags a structural deficit; trustees ask about reserves and federal funding risk
Summary
Interim CBO Fred Van Blug told trustees the proposed 2025-26 budget is built on the May revise and shows a roughly $5.9 million deficit in the first year of the multi‑year projection; trustees asked about reserves, staffing cost breakdown and sensitivity to a possible federal funding cut.
Interim Chief Business Official Fred Van Blug presented the proposed 2025-26 budget and a multi-year projection, telling trustees the document is based on the Governor's May revise and current enrollment assumptions.
Van Blug highlighted a projected structural deficit of roughly $5.9 million in 2025-26, a board policy target for reserves (board policy calls for an additional 6% on top of the 3% minimum statutory reserve), and a mix of one-time and ongoing savings the district identified to reduce the gap, including reduced technology commitments, staffing realignments and a modest contribution to OPEB.
Trustees focused questions on reserves and the composition of personnel costs. "Why do districts traditionally have about a 20% reserve?" a trustee asked; Van Blug explained reserves provide cash-flow protection and cited examples from the Great Recession. On federal funding risk—slides estimated about $7.1 million in direct federal funding—Van Blug said a hypothetical 15% cut would translate to roughly $1 million and that many federal funds are tied to mandated programs such as Title I and special education.
The presentation included an itemized list of planned reductions (approximately $5.1 million in identified savings) and noted assumptions about COLA and step-and-column salary growth; Van Blug said some items (transitional kindergarten funding, federal appropriations and labor negotiations) remain uncertain and could change the forecast. The budget hearing was closed by the board; formal adoption is scheduled for the end-of-June meeting.
