- Brad Haugaard
Positives
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Balanced Operations: Revenues ($90.5M) slightly exceeded expenditures ($90.3M) for 2024–25, producing a small surplus of about $232K before transfers.
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Strong Reserves: The ending fund balance remained substantial at $30.1M, though projected to decline to $26.2M in 2025–26.
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Compliance with Federal MOE: The district met the federal Maintenance of Effort requirement, avoiding potential penalties on future funding.
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Stable LCFF Base: Local Control Funding Formula revenues increased modestly (2%), showing stability in the district’s primary funding source.
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Healthy Cash Position: Nearly $38M in cash and equivalents was reported, giving the district liquidity to manage operations and contingencies.
Negatives
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Classroom Spending Deficiency: Only 50.79% of expenditures went to classroom compensation, below the 55% minimum for unified districts. This resulted in a $3M deficiency that could affect future apportionments if not corrected.
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Shrinking Revenues: Overall revenues are projected to drop 3.5% in 2025–26, driven largely by a 29% decline in federal funds and a 21% drop in expanded learning program funding.
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Eroding Reserves: Fund balance is projected to fall by about 13% in 2025–26, which may reduce flexibility in future years.
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Rising Personnel Costs: Classified salaries are budgeted to jump 15%, and PERS retirement costs up 15.5%, pressuring long-term sustainability.
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One-time Revenue Risk: Significant 2024–25 revenues came from asset sales and other one-time sources (e.g., $635K disposal of capital assets), which will not recur in 2025–26.
Overall Impression
The district closed 2024–25 with a balanced budget and strong reserves, but faces structural challenges: declining revenues, increasing personnel costs, and failure to meet classroom spending requirements. Unless addressed, these could constrain flexibility and trigger funding penalties in the next few years.
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