by Andrew Alonzo | aalonzo@claremont-courier.com

Claremont Unified School District’s Board of Education heard a budget update at its March 20 meeting that projected it would be operating at a deficit for the next three years.

The board voted unanimously to approve the second interim financial report of CUSD’s projected 2024-25, 2025-26, and 2026-27 budgets, which came with a “positive certification,” indicating that based on current projections, the district will meet its financial obligations for the current and two subsequent fiscal years, but will be operating in the red.

“Yes, it is accurate to say that Claremont Unified School District has projected deficit spending for the 2024-25, 2025-26, and 2026-27 school years,” wrote CUSD spokesperson Elaine Kong in a text message. “This means the district is anticipating that expenditures will exceed incoming revenues during those years. The primary reason for this deficit is declining enrollment, which results in a loss of Average Daily Attendance (ADA) funding — our main source of revenue.”

The district has a reserve balance, which includes unrestricted fund balances from prior years,  which it is using to offset current and future projected shortfalls, Kong said.

“So, while we are operating with a deficit in terms of annual revenues vs. expenditures, we are not immediately insolvent because of the reserves we’ve built up over time,” Kong wrote. “That said, continued deficit spending is not sustainable long term and will require the district to make adjustments in future years to align spending with revenue.”

Kong and Assistant Superintendent of Business Services Desiree Reyes did not immediately respond to questions regarding how long CUSD has been operating at a loss, if the school district had ever operated at a loss in years prior, or if expense cuts have been discussed, and if so, where and when.

Reyes said the recent sale of the La Puerta property for $12.25 million will help to repay the $3 million loan taken from the district’s general fund in 2023 for construction of Claremont High School’s new softball field. The sale however occurred after January 31 and was not included in the March 20 report.

“It will be reflected in the estimated actuals report, presented alongside the adopted budget, in June,” she said. “Please note that the $3 million repayment does not increase our revenue. It will, however, negate the effect of the $3 million deficit for fiscal year 24-25, allowing for a healthier ending fund balance to carry us through the coming years of continued declining enrollment and funding loss.”

Reyes said the district will face financial challenges in the coming years.

“Economic uncertainty remains a high risk to the enacted state budget,” she said. “This uncertainty can bring further funding adjustments to [local educational agencies], and we will need to align our future budgets to this.”

Reyes said CUSD staff will continue to monitor declining enrollment, falling attendance rates,  and pending salary increases.

New academic start date floated

The board also gave direction on how to gather community input regarding a potential change to the first day of school in 2026-27.

The district has for some time begun its academic year the last Wednesday in August. The board discussed the possibility of moving the academic start date to Wednesday, August 12 in 2026-27. District stakeholders were surveyed for their input last year.

“This has been an issue that has come up over the years since most districts in California have transitioned to a start date closer to the beginning or middle of August,” said Superintendent Jim Elsasser. “This board had a brief discussion on this issue last year and asked staff to survey our educational partners on this subject. Although a survey was conducted, we later recognized some inherent flaws in both the timing and the communication of the survey.”

(L-R) Claremont High School’s Avan Bisono and Mollie Chou, and San Antonio High School’s Gabriel Casteel and Daniella Hernandez, of the CUSD Superintendent’s High School Advisory Council, spoke in favor of moving the 2026-27 academic start date to August 12 at the March 20 Board of Education meeting. Courier photos/Andrew Alonzo

Elsasser and students from the Superintendent’s High School Advisory Council discussed potential benefits of an earlier start date. They included allowing the first semester to conclude before winter break, which Elsasser said “would likely reduce learning loss and minimize the need for extensive review before final exams that currently take place three weeks after student return from winter break.” The proposed move would also increase instructional time ahead of Advanced Placement and International Baccalaureate exams; allow fall sports teams to a longer preseason; aid in transfer students’ transitions; and better align with local community college enrollment deadlines, and with summer internship and employment opportunities.

The proposed change would also result in a shorter summer break during the transition year.

The item was presented for discussion only. The board directed the district to survey staff, parents and students inseventh through 12th grades for their opinions and present the findings during the next CUSD Board of Education meeting, 6 p.m. Thursday, April 17, at the Kirkendall Education Center, 170 W. San Jose Ave.