District presents proposed 2025–26 budget; projects modest fund balance increases and flags TK and special-education costs

Carmel Unified School District officials presented the proposed 2025–26 budget at a public hearing Wednesday and said the district's multiyear projections show modest net increases in fund balance while flagging ongoing special education costs, facility maintenance needs, and the timing of federal/state revenues.

Chief Business Official Yvonne Perez said the proposed budget for fiscal year 2025–26 "currently shows a projected net increase of approximately 1,900,000.0. When we include the combined general fund, that net increase is nearly 1,200,000.0." Perez walked through estimated actuals, the budget, and multiyear projections, noting that while payroll and benefits typically consume more than 80% of total spending, timing and one‑time expenditures can make year‑to‑year comparisons appear volatile.

Perez said contributions and transfers support special education and other restricted operations. She noted special education contributions are projected to increase from about $8.1 million to $8.6 million (an increase she described as roughly $555,000) and that total contributions and transfers across funds are projected to decline from $14.6 million in 2023–24 to $12.8 million in 2025–26. Perez told the board the district must also set aside reserves for cash flow because local cash receipts are concentrated later in the calendar year.

On universal transitional kindergarten (TK), staff described legislative phase‑in details and said the district plans to comply with TK access requirements but will not implement a proposed class‑size change from 12:1 to 10:1 for 2025–26. A district presenter explained, "For our district, we have made the decision to comply with most of the TK requirements in terms of the students that would be allowed to attend TK. But we are going to not implement the 12 the the 10 to 1 and remain at the 12 to 1." The district said TK classrooms will continue to require a certified teacher plus an additional adult for a 12:1 ratio.

Board members asked clarifying questions about fiscal responsibility, alignment with the newly adopted strategic plan and the district's capacity to absorb rising health‑insurance costs. Perez replied that the budget is aligned with the strategic plan's draft objectives, that the district has reserve capacity to address negotiated benefit increases, and that health‑insurance cost assumptions are conservative because final rates are often not available until late summer.

Perez said the district will bring formal budget adoption to the board after the public hearing process; no adoption vote occurred at this meeting. She thanked fiscal services and cross‑departmental staff for preparing the report. The board closed the public hearing with no public comments and will consider adoption at the June 18 meeting.