Budget

How did our district enter the current deficit in 2020-2021? Were there concerns about spending mismanagement before 2020?

Deficit Reduction Efforts

In 2020-2021, the district faced a $21 million deficit. Since then, proactive measures have been implemented to reduce this shortfall, including:

• Central office reductions
   
• Retirement incentives to gradually lower workforce costs
   

Impact of COVID-19 on Staffing

During the COVID-19 pandemic, state mandates prohibited school districts from laying off employees, requiring staffing levels to be maintained despite declining enrollment. Additionally, one-time federal and state relief funds temporarily supported staffing and programs. However, these funds are now fully spent and expiring.

Declining Enrollment & Budget Adjustments

The district is experiencing a decline of approximately 250-300 students per year, directly affecting ongoing revenue. Since 2022-2023, these financial challenges have been consistently addressed in budget presentations, emphasizing the need to adjust staffing and expenditures as funding sources expire.

Fiscal Responsibility & Transparency

There are no concerns of financial mismanagement—all funds have been spent in full compliance with state and federal regulations. However, as one-time funding expires, staffing and expenditures must be adjusted to ensure long-term financial stability.

1. What challenges does VUSD face in 2025-26?

• A projected state budget deficit
• Consecutive projected lower Cost of Living Adjustments (COLA)
• Uncertainty in global economy impacting California revenues 

2. Where/When can a stakeholder access a more detailed budget than what is presented to the Board? 

All detailed budget documents have been posted on this webpage and are also attached as PDFs to each Board presentation. The Board agendas, along with presentation links, can be accessed at https://www.venturausd.org/about/board-agendas-minutes.

1. What is included in the projected deficit for 2026-2027? Why does it increase significantly from 2025-2026?

The projected budget deficit for 2026-2027 is primarily driven by the expiration of various grants and one-time funding sources, which will shift ongoing expenses back to the general fund.

Several key funding sources will be fully spent with no additional allocations to sustain the programs and positions they currently support, including:

• Wellness Grants- includes funding for counselors at high schools and middle schools. 
• A-G Grants- includes funding for counselors at high schools and middle schools.
   
• Learning Recovery Emergency Block Grants- includes funding for counselors, intervention teachers, and campus supervisors.
   

As these funds phase out, the district must either absorb the associated programs and personnel into the general fund or implement reductions. This shift will increase general fund expenditures, contributing to the anticipated budget deficit.

What are the key steps in VUSD’s budget process?

1. Governor’s Budget Proposal (January 10): Used for three-year planning
2. Staff Reduction Notices (March 15): Required by law for impacted employees
3. Public Budget Hearings (Mid-June): Community input opportunity
4. State Legislature Approval (June 15): The budget must be approved, or legislators lose pay
5. Final Adjustments (Mid-July): District budgets adjust to the final state budget

1. Where do ASB funds come from?
ASB funds are generated through student-led initiatives, such as fundraising events, student store sales, and ticket sales.

2. How are ASB funds used?
These funds support student activities, clubs, and events. Expenditures must comply with district policies and are overseen by the ASB council and school administration.

1. How are athletic programs funded in VUSD and how do tickets sales contribute to funding?

Athletic programs are funded through a combination of district general funds, Associated Student Body (ASB) funds, donations, and fundraising efforts.

2. What was the total athletic expenditure for 2023-24?
In the 2023-24 school year, the general fund expenditure for athletics was approximately $1.14 million, broken down as follows:

• $615K for coaching salaries (Article 17 positions)
• $410K for transportation
• $115K for supplies and equipment

3. How do ticket sales contribute to funding?
Ticket sales help fund day-to-day activities for all sports. For example, Buena High School raised $117K through ticket sales, which supports their athletic programs.

Can bond or parcel tax funds be used for general expenses like facilities staff salaries?

There are several reasons why a district should not use Measure E bond funds to pay for facilities staff salaries, even if their work is dedicated to bond-eligible projects:

1. Legal Restrictions – Bond funds are legally intended for capital improvements, not ongoing personnel costs. Misuse could lead to legal challenges, audits, or penalties.
2. Voter Expectations & Trust – Voters approve bonds with the understanding that funds will be used for tangible facility improvements. Using the money for salaries—even if technically allowable—could create public distrust and future funding challenges.
3. Short-Term Fix, Long-Term Problem – Bonds are a one-time funding source, while salaries are ongoing expenses. When bond funds run out, the district could face budget shortfalls and might need to cut staff or find new funding sources.
4. Accounting & Compliance Burdens – Tracking and proving that employees work only on bond-eligible projects requires rigid oversight and could create administrative complexity. If even a small portion of their work does not qualify, the district risks non-compliance.
5. State and Auditor Scrutiny – Misuse of bond funds can trigger state investigations and audits. If funds are found to be misallocated, the district may have to repay the money from its general fund, reducing resources for other needs.

Parcel Tax Proposal

In December 2024, VUSD proposed Measure H, a parcel tax designed to generate $2.5 million annually over eight years to support the district's budget. Despite receiving 66.48% voter support, the measure narrowly failed (by 112 votes) to meet the required two-thirds majority for approval.

1. Once a budget is passed at the end of the year, how is spending outside of the budget approved afterward? 

The annual budget is a dynamic document that undergoes multiple revisions throughout the fiscal year to accommodate changing financial and operational needs. These revisions are formalized through interim reports, which are presented to the Board of Education for approval.

VUSD prepares two key interim reports:

• First Interim Report – Reflects financial activity through October and is submitted by December.
   
• Second Interim Report – Captures data through January and is due by March 15.

These reports ensure that any spending beyond the initially approved budget is documented and authorized by the Board. Additionally, VUSD's Business Services department oversees the administration of district resources, ensuring all expenditures comply with legal requirements and Board policies.

1. How are California public schools funded?
Funding comes from multiple sources:

• State Funding (LCFF): The largest portion, based on Average Daily Attendance (ADA), property taxes, and state aid
• Federal Categorical Funding: Restricted-use funds for specific programs (e.g., Title I, Special Education)
• State Categorical Funding: Restricted-use funds for state-prioritized programs
• Local Resources: Grants and donations from local organizations and agencies

2. What is the Local Control Funding Formula (LCFF)?
Introduced in 2013, LCFF provides additional support for English learners, foster youth, and low-income students. Schools must submit an LCAP to show how funds are used.

3. What is the Local Control Accountability Plan (LCAP)?
The LCAP sets goals and budgets for student success. Community members can provide input each spring.

1. What financial analysis has been done to assess budget shortfalls and identify opportunities for cuts? Has an independent consultant been involved?  

The Ventura Unified School District (VUSD) has conducted several financial analyses to identify budget inefficiencies and explore cost-saving opportunities:

Energy Efficiency Initiatives

VUSD has partnered with ENGIE North America to implement a district-wide energy program across 27 school sites. Thising solar panels, LED lighting, and customized sports facility lighting. The project is expected to reduce electricity costs by 70% over 30 years.
Additionally, VUSD anticipates receiving $14 million in federal funding through the Inflation Reduction Act upon project completion

Budget Oversight & Audits

VUSD has conducted multiple internal and external financial reviews to assess budget waste and identify potential savings, including:

• Fiscal Crisis & Management Assistance Team (FCMAT) audit
   
• Federal Program Monitoring (FPM) audit
   
• Annual financial audit
   
• Ongoing budget review by Ventura County
   

The district has not engaged an independent consultant but relies on an in-house Certified Public Accountant. The fiscal department works directly with each director to review line-item budgets, making adjustments and reductions as needed throughout the year to manage waste and ensure fiscal efficiency.

These efforts reflect VUSD’s ongoing commitment to identifying budget inefficiencies, implementing cost-saving strategies, and ensuring fiscal responsibility while maintaining the quality of education.

1. What is the LCAP?
The LCAP outlines VUSD’s goals, actions, and resource allocations to improve student outcomes.

2. How much funding is dedicated to LCAP in 2024-25?
The 2024-25 LCAP budget includes:

• $19.4 million in supplemental and concentration grant funding
• Additional state and federal funds, such as Title I funding

1. How are PTA/PTO funds raised?
Through membership dues, fundraisers, and community donations.

2. What can PTA/PTO funds be used for?
These funds support school programs, purchase equipment, fund field trips, and provide additional resources not covered by the school’s budget. PTA/PTO organizations collaborate with school administrators to align expenditures with school needs.

1. What are site funds?
Site funds are financial resources allocated to individual schools to support their specific needs and initiatives.

2. Do all schools receive the same amount of site funds?
No. Funding varies based on student enrollment, program requirements, and each school’s unique needs.

3. Where does this funding come from?
Site funds come from the district’s overall budget, which includes:

• State funding through the Local Control Funding Formula (LCFF)
• Federal funding sources

4. How can site funds be used?
Schools use these funds for supplies, programs, and some staff salaries, ensuring alignment with district policies and school priorities.

How have the Special Education Audit and subsequent changes affected this year’s and future years’ budgets? 

No budgetary changes have been made; Special Education currently requires a $15 million contribution from the General Fund to cover expenses, not covered by funds received from the state and federal governments for Special Education costs. 

If this budget crisis has been known for years, why are stakeholders just now being asked for input?

Addressing the Structural Deficit: A Proactive Approach

The district has been aware of the structural deficit for several years and has consistently included it in budget presentations since 2022-2023. Throughout this time, proactive steps have been taken to reduce costs, including:

• Central office reductions
   
• Retirement incentives to gradually downsize the workforce
   
• Evaluating program sustainability as one-time funds expire
   

Why Stakeholder Input Now?

VUSD has consistently sought input from the community on its priorities and budget through the LCAP process. Over the past three years, we have seen a significant increase in the number of staff, students, families, and community members who have shared their perspectives on how district funds should be allocated through our LCAP survey. We have used this feedback, along with the LCAP, as a guiding framework in our decision-making.

While the district has been actively monitoring and addressing budget challenges, stakeholder engagement is critical at this stage for several reasons:

• Although budget constraints have been discussed for years, this phase requires more direct engagement from staff, parents, and the community to help determine the best path forward.
   
• Immediate Decisions Are Needed – With one-time funds fully spent, staffing and program adjustments must be made now to align with ongoing revenue.
   
• Impact on Schools & Programs – Decisions regarding staffing, class sizes, and program funding directly affect students, families, and employees, making stakeholder feedback essential.
   
• Transparency & Collaboration – The district is committed to an open and inclusive decision-making process, ensuring that community input informs the difficult choices ahead.

1. What happens if the U.S. Department of Education is reduced or eliminated?
While the President can initiate changes, congressional approval is required to abolish the Department. Some responsibilities could be transferred to other federal agencies.

2. How much federal funding does VUSD receive?
VUSD currently receives $13,473,056 in federal funds.

3. How is this funding used?
Federal funds support key areas such as:

• Special Education: $3,677,407
• Title I (Low-Income Students): $3,181,821
• Title II (Professional Development): $469,312
• Title III (English Learners): $300,004
• Title IV (Student Safety & Programs): $770,604
• Title VI (Indian Education): $53,244
• Career & Technical Education (CTE) Perkins: $138,229
• Adult Education: $632,435
• Child Nutrition – Federal Portion: $4,250,000

4. What about federal student aid?
VUSD high school students rely on federal aid, such as Pell Grants and Direct Subsidized Loans. If the Department is closed, the future of these programs is uncertain. Families should research alternative funding options.

Can you clarify the $17M variance between the approved budget and the first interim budget this year? 

Budget Analysis: Revenue & Expenditure Adjustments

When analyzing expenditures, it is important to consider both unrestricted and restricted budgets. The most significant revenue and expense changes occur between the Adopted Budget (June) and 1st Interim (December), as this period reflects key updates based on actual enrollment and staffing needs.

Revenue Adjustments: Adopted Budget → 1st Interim

Between the Adopted Budget and 1st Interim, revenue increased by approximately $7.8 million, primarily due to unexpected one-time funds, including:

• $1.7 million from a workers' compensation dividend.
   
• $3.7 million from the Gold Coast Trust closeout, now incorporated into the budget.
   
• Increased LCFF funding due to a rise in the supplemental and concentration percentage from 56% to 57%.
   
• $789K increase in Career Technical Education (CTE) allocations, adjusted to match final state funding.
   

Expenditure Adjustments: Adopted Budget → 1st Interim

Due to enrollment stabilization and evolving staffing needs, expenditures were adjusted as follows:

Salaries & Benefits Adjustments

Certificated Salaries (+$2.5 million)

• $1.5 million for intervention teachers, funded through LCAP services.
   
• $185K for Co-Teaching substitute budgets.
   
• $172K for Long-Term Substitutes.
   
• $200K for Professional Development focused on reading initiatives.
   
• $98K for a multilingual teacher (Title III funding was insufficient).
   
• $48K for additional Summer School hours.
   

Classified Salaries (+$5 million)

• $1 million placeholder for vacation payouts (new budgeting practice).
   
• $1.8 million for the Behavioral Health Team, approved post-budget adoption.
   
• $600K for overtime and substitute costs in Facilities, based on a three-month expenditure trend.
   
• $600K for Expanded Learning Opportunities Program (ELOP) classified staff, supporting ongoing recruitment.
   
• $1 million for 25 additional Paraeducator positions in Special Education, aimed at reducing contracted service costs by bringing services in-house.
   

Employee Benefits (+$3 million)

• Adjustments aligned with salary increases for both certificated and classified staff.
   

Other Key Budget Adjustments

Supplies & Materials

• $1.4 million in restricted Lottery Carryover, now fully spent.
   
• $600K increase in Facilities supplies, based on a three-month expenditure trend.
   
• $900K allocated for Prop 28 final supply budgets.
   

Contracted Services (+$2 million)

• Adjusted liability coverage estimates, which were unavailable during the Adopted Budget.
   

Capital Outlay

• $700K allocated for bus purchases, approved post-Adopted Budget.
   
• $1 million added for the EP Foster Annex project, funded through restricted ELOP funds.
   

2nd Interim Adjustments (March)

By the 2nd Interim (March), six months of actual revenue and expenditures were available for analysis, leading to the following major adjustments:

• Revenue Increase (+$1.3 million)
   
  • Additional one-time Medi-Cal funding.
     
  • Further Gold Coast Trust closeout funds.
     
• Expenditures Decrease (-$700K)
   
  • Overall reduction in combined unrestricted and restricted expenses, reflecting budget adjustments based on actual spending trends.
     

These adjustments reflect VUSD’s commitment to fiscal responsibility, ensuring resources are allocated effectively while adapting to financial realities.