Tehachapi Unified certifies positive budget but warns of structural deficit and potential layoffs

Tehachapi Unified School District trustees voted Dec. 16 to adopt a positive certification for the district’s first interim budget report while staff warned that one‑time revenue and declining enrollment leave the district projecting multi‑year deficit spending.

Chief Business Officer Hojad Intazari told the board the district can meet its financial obligations for the current and next two fiscal years — the statutory minimum that constitutes a “positive” certification — but cautioned that the result reflects one‑time state funds and a favorable October apportionment. He said LCFF revenue is up about $861,000 and that the district recognized additional one‑time receipts including a student support/professional development discretionary block grant and learning recovery funds that together increased the projected fund balance.

Intazari outlined the drivers of the district’s long‑term pressure: Tehachapi’s current enrollment (about 4,116 students) remains below pre‑pandemic figures, and a decline of roughly 191 students since those years equates to an estimated $2.5 million in lost revenue over recent years. Staffing levels have grown (reported at about 520.5 full‑time equivalents this school year), and benefit cost increases — notably STRS employer contributions — added roughly $600,000 to expenses, he said. After stripping out one‑time funds, the district still projects deficit spending in the multi‑year projection.

Intazari explained timing risks tied to the state budget: California’s revenues remain volatile and depend heavily on capital gains, which can mask weaknesses in other tax streams; the Legislative Analyst’s Office projects structural shortfalls that could produce deferrals or other changes that ripple to local districts. The CBO walked trustees through how LCFF, restricted grants and one‑time funds are accounted for and why “one‑time” dollars complicate long‑range planning.

Board members asked clarifying questions and were told the district will present multiple staffing‑option scenarios in the months ahead. Superintendent Bell reiterated that “reduction in force” steps would focus on eliminating positions rather than targeting individual employees, and reminded the public that preliminary layoff notices must legally be issued by March 15 (with permanent notices following later, he said).

The board adopted Resolution No. 01DEC25 certifying the first interim positive certification by roll call vote (motion carries 6‑0). The vote and discussion close out a budget review that leaves trustees with a short‑term positive status but a continuing need to align ongoing expenses with recurring revenues.