At its meeting on Tuesday, December 9, the Alameda Unified School District (AUSD) Board of Education reviewed the First Interim Budget report, which provided an overview of the district’s financial position as of late October 2025. Several Board members also rotated into new roles, as part of the annual organizational meeting.
First Interim Report
As he kicked off his presentation, Assistant Superintendent of Business Services Shariq Khan explained that the First Interim report is intended to be a follow-up to the 2025-2026 budget approved in June, updated to include actual figures from the first one-third of the school year. This includes the latest estimate for the Cost of Living Adjustment (COLA) at 3.02% and average daily attendance. Both metrics directly inform the amount of funding the district receives.
The revised budget for 2025-26 includes the latest breakdown of unrestricted funds that can be spent on any educational purpose, as well as restricted funds, which must be spent only on specific programs such as special education. In summarizing the district’s Multiyear Projections (MYP), which offer an outlook on how the budget plan could perform over the next three fiscal years, Khan outlined an ongoing drawdown of the unrestricted fund balance to fund the 2024 labor agreement. This year, AUSD plans to spend $3 million more than its revenue, taking its ending fund balance from $33.4 million to $29.6 million (before commitments) by June 2026.
Khan also provided alternative versions of the MYP to capture how changes in funding like a drop in the COLA to around 2.5%, or a block grant that provides an additional $2 million per year, could affect the three-year outlook. And in response to past questions about why AUSD maintains an ostensibly large ending-fund balance each year, rather than potentially using some of the amounts for salaries, Khan detailed a breakdown of set-asides along with state-mandated and strategic reserves intended to help the district maintain financial stability and weather future emergencies.
During the Board discussion, Trustee Jennifer Williams inquired whether AUSD could pursue a more aggressive spending drawdown and still meet reserves. In response, Khan emphasized that the desire is to have a “softer landing” toward an ongoing equilibrium. Superintendent Pasquale Scuderi further explained that being careful with any fund drawdown buys the district time to determine how much it can absorb financially without facing a deficit. Board Clerk Heather Little also asked Khan to include further detail on the changing assumptions that go into the MYP, in response to a public comment asking why ending-fund balances can fluctuate each time the model is presented to the Board.
The Board unanimously approved a positive certification of the First Interim Budget, concluding that AUSD will meet the financial obligations of the current and two subsequent years.
Board Rotates Roles
Later in the meeting, the Board stepped through procedural items as part of its annual reorganization. This included the elevation of Vice President Ryan LaLonde to President, and Clerk Heather Little to Vice President. The Board unanimously voted to appoint Jennifer Williams as new Board Clerk. Williams assured Trustee Carrie Hahnel, who joined the Board last month, that the Board has a “tradition” for new members to “learn the ropes” and be mentored by others before jumping into an officer role at the end of their first year…