FJUHSD certifies first interim report; officials highlight planned $9 million deficit tied to one‑time costs

Ruben Hernandez of the district’s business department presented the Fullerton Joint Union High School District’s first interim financial report on Dec. 9, and trustees certified the report and approved the item by roll call/voice vote.

The presentation explained the district’s revenue and expenditure assumptions, noted that roughly 77% of local control funding formula revenue derives from the state, and reviewed multi‑year projections, including projected ending fund balances. Hernandez told trustees the current year’s deficit is primarily driven by one‑time items — notably the early retirement incentive — and said the difference in expenditures versus revenue this year is "about $9,000,000," which the district described as a "planned deficit approach." He also noted projected surpluses in the 2026–27 fiscal year once one‑time costs are accounted for.

Why it matters: The first interim serves as the district’s required status report on fiscal solvency and is filed with the Orange County Department of Education and the California Department of Education. It shapes planning for the Governor’s proposed budget, LCAP alignment and staffing and enrollment projections for 2026–27.

Hernandez reviewed components of the budget including local property‑tax fluctuations, one‑time grant accounting (a Cal SHAPE reimbursement tied to plumbing/fixtures), and newly included multi‑year collective bargaining agreements. He noted restricted funds total roughly $17 million and that the district maintains a multi‑year average ending fund balance of about 32%.

Board action: Trustees moved to approve the first interim report; student board member Ari recorded an affirmative vote and the motion passed (recorded in the meeting as 4–0). The superintendent and board will incorporate the Governor’s proposed budget when it is released and return to the board with updates at second interim in March.

Authorities and compliance: The presenter cited Assembly Bill 1200 reporting requirements for interim reports; the certified document will be transmitted to the Orange County Department of Education and the California Department of Education.