The Fallbrook Union High School District board accepted the second interim financial report for fiscal year 2024–25 on March 12 after a presentation from Chief Business Official Brenda Meffert.

Meffert told trustees the district’s second interim showed an overall increase in the expenditure budget to $49,649,347, an increase of $594,258 from the first interim. She explained a mix of changes: a $219,518 increase in certificated salaries driven by additional hours and salary-step movement; a $165,000 temporary reduction in classified salaries offset by a $234,230 rise in benefits; increases in books and supplies and professional services; and adjusted special-education placements and service contracts that raised SELPA/JCCS costs by $42,766.

The report projects an ending fund balance for 2024–25 of $5,657,838. After required assignments — $35,000 to the revolving cash account and a 3% reserve for economic uncertainties of $1,535,924 — the district’s unassigned balance stood at $4,086,922. Multi-year projections forecast a 2025–26 ending balance of approximately $2.6 million and a narrower surplus in 2026–27 roughly shown as $288,316 in the materials; Meffert emphasized these are estimates that depend heavily on enrollment and state funding assumptions.

Meffert explained the enrollment and Average Daily Attendance (ADA) assumptions used in the projection: P1 ADA was reported at about 1,847; the district expects declines between P1 and P2 based on historical patterns and used an estimated P2 ADA and multi‑year reductions (projected funded ADA values used in state calculations were 1,934 for the current funding year, then 1,874 and 1,828 in subsequent years under the district’s assumptions). Meffert also noted the district typically loses students between reporting points and used a multi-year averaging approach that affects state funding.

Superintendent Ilsa Garza Gonzales and Meffert told the board the district continues to count on federal Impact Aid (referred to as Impact Aid) — approximately $1,000,000 — in the 2025 budget cycle; Meffert said that funding looks secure for 2025 but that the 2026 allocation remains uncertain and that a loss of that revenue would materially change the district’s projections.

Trustees voted to approve the second interim financial report as presented. The recorded roll call was President Mister Caralampio — aye; Mister Christensen — absent; Mister Haskell — aye; Mister Jones — aye; Miss Rodarte — aye.

Meffert said staff and administrators have identified cost reductions and one-time expenditures that can be trimmed in outer years to preserve a positive multi-year budget picture if enrollment continues to fall. The board did not make any immediate staffing decisions during the meeting; subsequent staffing or program adjustments would require separate board action.