District forecasts three years of deficits and sharply lower reserves

What happened

San Lorenzo Unified's second-interim forecast projects a $30.1 million deficit in 2025-26, followed by deficits of $15.9 million and $8.6 million over the next two years. The district still self-certified as able to meet obligations, but projects unassigned funds falling from $35.5 million to $2.5 million by 2027-28.

Why it matters to families

The projections show sustained spending above revenue could substantially shrink the district's flexible reserves, reducing its cushion for future budget pressures. These are forecasts, not adopted spending cuts.

The evidence

The March 3, 2026 second-interim presentation's combined General Fund multiyear projection lists net decreases of $30,063,053 for 2025-26, $15,935,301 for 2026-27, and $8,628,440 for 2027-28. It projects unassigned/unappropriated funds of $35,482,317, $14,486,913, and $2,477,483, respectively, while stating that the district self-certified Positive.

The source