County education officials have warned Coronado Unified that they will need to make $2.4 million in budget reductions by fiscal year 2026-27.
The San Diego County Office of Education (SDCOE) has reviewed and approved the Coronado Unified School District’s 2024-25 adopted budget. But in a letter, SDCOE has requested that the district review subsequent year projections.
“We encourage the district to make ongoing expenditure reductions to eliminate the structural deficit,” reads a letter dated Sept. 9.
The county said they will evaluate the district’s First Interim Report submission in December to review the district’s board-approved certification status of positive, qualified, or negative.
Coronado Unified has been rapidly draining its reserve funds, but if funds fall below 3% of the budget total, the county could intervene for further analysis of the adopted budget.
“They’re also directing us to present them with a budget and a budget plan that shows how we’re going to demonstrate that 3% in the 26-27 school year,” Deputy Superintendent Donnie Salamanca told the board in September.
County correspondence
Coronado Unified continues a planned spend-down in reserves with the goal of becoming locally funded on or before the 2027-28 fiscal year.
Salamanca reported the district faces a negative reserve balance for the future even though projected reserves for the last school year increased by $400,000 from previous estimates.
According to Salamanca, once Coronado Unified becomes a basic aid school district, they could be receiving an additional $8-12 million.
Salamanca said CUSD could become a basic aid district in 2027-28 if property taxes continue on par for a 4.5% tax growth. That means the district would get its income directly from property taxes, moving away from state aid, or the current Local Control Funding Formula (LCFF).
Before then, CUSD has projected deficit spending in the upcoming three years.
While the San Diego County Office of Education affirmed the district’s adopted budget, it asked officials to revisit long-range planning in order to meet the minimum 3% reserve requirement.
CUSD projected $16.5 million in reserves as of June but the district ended with $16.9 million, leaving them with $10.9 million in reserves after the year ahead.
Still, Salamanca said current projections show the district will fall $300,000 short by the 2026-27 fiscal year.
“If there are additional expenses or reductions in revenue, that’s going to make the problem even bigger,” he added.
Low enrollment trend
According to Salamanca, since the budget was adopted, there have been additional expenditures that are not yet included in projections presented in June.
In the meantime, Salamanca warned that the district – which already has reduced staffing and juggled personnel to reduce spending, may face even more cutbacks.
“Additional expenditures are going to require additional reductions or additional budget solutions,” said Salamanca.
Coronado Unified currently relies on state payments per student for much of its income, and overspending issues have been compounded by less-than-expected enrollment.
The district’s September student count remains slightly below the projected 2,800 students for 2024-2025 and has since dropped.
“What they’re looking for is a plan, some progress, and a steadfast commitment to ensuring that we’re meeting the legal obligation (for reserves) of 3% in all three years,” said Salamanca. “Our hope is to engage the community … to get some feedback. … But, ultimately, it will fall on the team to make recommendations to meet the budget solutions requested.”
In other matters:
- The district will hold two additional budget study committee meetings at 3:45 p.m. on Sept. 18 and Oct. 9, also available as live webinars.
- The board has assigned trustees to three committees that will support school safety, facilities and the district’s military population.
- District officials announced their participation in a discussion regarding air quality in the region with local representatives followed by subsequent review of heat-day guidelines and a report on funding for air sensors.
The next regular board meeting is on October 17 at 4 p.m.
