by Andrew Alonzo | aalonzo@claremont-courier.com

Claremont Unified School District’s Board of Education learned last week its current fiscal year’s financial deficit is now projected be $11.49 million, nearly double the shortfall district staff had predicted in June.

According to Assistant Superintendent of Business Services Desiree Reyes, who delivered the first interim update to the district’s 2025-26 and two subsequent school year budgets, CUSD is poised to generate $103,798,609 in revenues, with $115,288,501 in expenditures in 2025-26, leaving a deficit of $11,489,892. Reyes said CUSD will tap its reserve budget of $22,817,526 to cover the shortfall.

“The first interim report represents the first official revision to the district’s adopted budget as presented in June and incorporates key components of the 2025-26 enacted state budget,” Reyes said. It includes financial information through October 31.

Reyes said the report considered CUSD’s projected student enrollment of 6,031 with an attendance rate of 95.5%; negotiated salary agreements for all employee groups in the current fiscal year; an approximately $1.8 million state block grant for restricted, one-time funds; and an approximately $435,000 restricted budget carryover from the 2024-25 fiscal year.

On June 23, CUSD projected a deficit of $5,991,246 in its 2025-26 adopted budget. The new number, $11,489,892, represents an increase of $5,498,646.

“The deficit spending in the current year, 25-26, is a bigger figure than we’re used to seeing,” Superintendent Jim Elsasser said. “But just as a reminder, we had to put in the new phone system, we had the first-year payment on the technology phase two that we talked about at that special meeting, and then we are covering the increased cost of health and welfare for our employees for the one year while we’re working out how we’re going to address that plan for the following [years]. And so, all of that made it a much bigger figure than usual.”

The new report predicted CUSD will experience deficits of $3,841,417 in 2026-27 and $2,545,490 in 2027-28. Projections are linked in the December 11 board agenda at cusd-claremont.community.highbond.com under item 17.01.

Reyes said the “statutory [cost-of-living adjustment] used for the first interim report are those determined by the enacted state budget at 2.30% in 25-26, 3.02% in 26-27, and 3.42% in 27-28.” Similar cost of living adjustments may hold in the next financial update, in March 2026, depending on California Governor Gavin Newsom’s January budget proposal, Reyes added. Reyes said the district will continue to monitor other economic variables such as the state’s economic outlook, future compensation increases for employee groups, and continued challenges brought by lower attendance and declining enrollment, which is projected to drop by 100 students over each of the next three years.

The board approved its report with a positive certification. “A positive certification indicates that based on current projections, the district will meet its financial obligations for the current and two subsequent fiscal years,” the agenda item stated.

The March 2026 interim budget update will include finance data through January 31, Reyes said.

CUSD spokesperson Elaine Kong did not respond to questions about how the district plans to address future deficits.

Board names new leadership

The Board of Education named new leadership for 2026: Alex McDonald will serve as board president, Kathy Archer will be vice president, Cheryl Fiello was named clerk, and outgoing President Kathryn Dunn and Richard O’Neill will serve as board members. Elsasser was selected as secretary.

“I am honored to serve our community as Board of Education President this year,” McDonald wrote in a statement. “As the Board of Education our primary mission is to ensure every single student in CUSD has the resources and support necessary to reach their absolute best potential. This requires a multifaceted approach built on existing and new partnership, community engagement and support for our district teachers and staff. Further I am committed to collaborative governance within the board, district administration, and community to bring diverse voices to the decision-making table. By working together—students, staff, families, and the community — we can continue to elevate CUSD to new heights of excellence.”

Other business

The board accepted its 2026 organizational and committee assignments:

McDonald will serve as the board rep for Claremont Chamber of Commerce; Archer, Claremont Education Foundation; Fiello, Claremont After-School Programs and alternate for Claremont Chamber of Commerce; Dunn, candidate for delegate to California School Boards Association Region 23, a representative of Baldy View Regional Occupational Program, where she’ll also serve as president of its Board of Education Commission, and the Claremont Parent and Faculty Association and Legislative Awareness councils; and O’Neill, alternate for Baldy View ROP and Claremont Education Foundation.

The board also voted unanimously to increase members’ stipends by 1% to $338 per month in 2026.

The next school board meeting is set for 6 p.m. Thursday, January 15, at the Kirkendall Center, 170 W. San Jose Ave., Claremont.