San Lorenzo projects three years of general-fund deficits

What happened

The district’s 2025–26 interim budget projects general-fund spending above revenues this year and in each of the next two years. The projected combined fund balance falls from about $53 million at the end of 2025–26 to $31.4 million by 2027–28.

Why it matters to families

The projections show the district drawing down its financial cushion while it continues to fund ongoing operations; enrollment declines and special-education costs are among the budget pressures identified in the presentation.

The evidence

The December 9, 2025 first-interim presentation projects combined General Fund net decreases of $29.57 million in 2025–26, $14.65 million in 2026–27, and $6.92 million in 2027–28, with ending balances of $53.01 million, $38.35 million, and $31.43 million, respectively. The agenda item says the district submitted a Positive Certification, meaning it projected it could meet obligations in the current year and following two years; the budget projections were presented for Board consideration and approval.

The source