Lawndale School District presents proposed budget amid declining enrollment and state revenue uncertainties

The Lawndale Elementary School District is preparing for significant budget adjustments as it faces declining enrollment and funding uncertainties. During the board meeting on June 6, 2025, Assistant Superintendent Howard Ho and Director of Budgeting Luis Diaz presented the proposed budget for the 2025-2026 school year, highlighting the challenges ahead.

The district's Average Daily Attendance (ADA) funding, which had previously been protected during the COVID-19 pandemic, is now closely aligned with current enrollment figures. This shift means that the district will no longer benefit from the hold harmless provision that previously shielded it from funding drops due to decreased enrollment. The projected enrollment for the upcoming year is expected to decline to approximately 4,216 students, a 2.5% decrease from the previous year.

The budget proposal reflects a cautious approach in light of the state's economic conditions. The governor's May revision indicated a reduction in Proposition 98 funding, which guarantees minimum funding for K-14 education, by $4.4 billion over three years. Although there are no immediate cuts to local funding, the district is preparing for potential future challenges as state revenues are projected to slow down.

To mitigate the impact of declining enrollment, the district has implemented an early retirement incentive, allowing several employees to retire early, which will help balance staffing levels with student numbers. This strategy aims to reduce costs by replacing higher-salaried staff with newer, less expensive hires.

The proposed budget outlines total expected revenues of $67.8 million, with significant contributions from state aid and property taxes. However, total expenditures are projected at $76.1 million, leading to a budget deficit that the district will need to address.

As the district moves forward, it will continue to monitor its financial situation closely, particularly regarding special education expenditures, which have been rising. The board is set to approve the budget on June 26, 2025, marking a critical step in navigating the financial landscape for the upcoming school year. The decisions made now will have lasting implications for the district's ability to provide quality education amidst ongoing economic challenges.