As the Board President of Morgan Hill Unified School District (MHUSD), I am writing to clarify our District’s financial position for the school year 2024-25. Now that we have closed our financial books, I am pleased to report that through diligent efforts and strategic planning, our district has strengthened our fiscal outlook.
In our Adopted Budget in June 2023, MHUSD had anticipated a $6.7 million operating budget deficit to end the 2023-24 school year. Today, I am proud to announce that we have achieved a positive turnaround for this school year’s budget. We ended the fiscal year with a surplus of slightly over $1 million in the District’s Unrestricted General Fund.
Thanks to our dedicated board and district staff, revenue upsides and prudent cost controls have set us on a brighter path.
Our district’s financial position is now healthier than anticipated. Today, our Unrestricted General Fund reserves have grown to an impressive $41 million, excluding approximately $4 million in the Special Reserves Fund. This financial foundation provides more stability and equips our board with the flexibility to implement deficit spending reductions.
Moving forward, my fellow board members and I recognize there are still broad fiscal demands that require us (and all public school leaders) to be forward thinking, including the expiration of one-time COVID-19 funds, the downturn of the state’s economy resulting in lower education revenues and significant increases in areas related to special education general fund contribution, utilities and operations.
However, we are committed to continuing to navigate any challenges thoughtfully and transparently to provide the best opportunities and outcomes for our students.
Along with a healthier reserve position, we have expanded our budget advisory member composition in our budget advisory committee, consisting of staff, parents as well as local taxpayers. Our district is committed to continuing to be transparent in its decision-making and value our community’s engagement in financial management.
As the MHUSD Board President, I want to assure our community that the district is committed to maintaining a solid financial footing. We are well-prepared to continue delivering high-quality education to all our public school students.
Adam Escoto
MHUSD Board President
