September 2025

Each year, school districts in California are required to “close the books” on their budgets. This process wraps up the prior fiscal year, which runs from July 1 to June 30, and provides a clear picture of how actual spending and revenues compared to projections. The results are reported to the County Superintendent of Schools and the California Department of Education.

On September 11, 2025, the Cypress School District Board of Trustees certified the Unaudited Actuals for the 2024/25 fiscal year. The report shows that while our revenues came in close to expectations, some expenses ended up higher than planned, resulting in lower reserves than projected.

Revenues and Expenditures

For 2024/25, the district received $54.2 million in revenues and spent $58.4 million from the General Fund, which covers most day-to-day operations. Because of the planned use of some one-time resources in 2024/25, expenditures were expected to be higher than revenues, but the difference ended up being about $1 million more than anticipated.

Key cost increases were seen in:

• Utilities (electricity, gas, water)

• Employee health benefits

• Services for students with disabilities

These rising costs mirror the trends many households and organizations are facing.

Use of One-Time Funds

The district’s budget includes:

• Unrestricted funds – which can be spent on any educational purpose

• Restricted funds – which must be used for specific programs or services

To meet the state’s requirement that we maintain a reserve of at least 3% of our annual spending, the district used one-time restricted funds – above what had been planned – to cover ongoing costs. While this balanced the books for now, it’s not a long-term solution, much like dipping into a personal savings account to pay regular monthly bills.

Looking Ahead

Over the next two months, district staff will carefully review the 2025/26 budget in light of how last year ended. The focus will be on identifying ways to reduce ongoing expenditures so that future budgets are sustainable. 

This review will be presented to the Board of Trustees in the First Interim Budget Report at the December 11, 2025, Board Meeting. This is one of two major updates provided each year, and it will show the financial outlook for both the current and the next two years.

Our Commitment

We recognize that school finance can be a complex subject, but it is important for our community to understand how resources are being managed. The district is committed to using its funds wisely and will continue to keep families, staff, and community partners informed as we move through the budget process.

BOARD OF TRUSTEES 

Carrie Hayashida - Jaime Needham - Meghna Parikh - Lydia Sondhi, Ph.D. - Troy Tanaka 

SUPERINTENDENT 

Anne Silavs