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Lemon Grove Board Sees Stronger‑than‑Expected Year‑End Balance but Multiyear Projection Still Shows Ongoing Deficit
Summary
At the June hearing the district reported estimated 2024–25 actuals that lift the projected ending fund balance to roughly $5.5 million, but the multiyear projection shows continued deficit spending and a shrinking contingency reserve; trustees asked for itemized unmet‑needs costs and school‑level suspension data.
District fiscal staff presented estimated 2024–25 actuals and a proposed budget for 2025–26 at the June meeting, reporting an ending general fund balance higher than earlier projections and a positive certification for the upcoming budget but warning of persistent multiyear deficits.
Director of Fiscal Services Michelle Howard Kelton said updated P‑2 data and stronger than expected attendance put the district’s estimated ending fund balance “nearly $5.5 million,” higher than earlier interim projections. She described routine year‑end adjustments — donations, interest gains and Medi‑Cal billing — that improved current‑year results. Howard Kelton said the district will present the adopted budget and LCAP for board adoption on June 24.
Chief Business Official Tianna Barton presented the district’s multiyear projection (MYP). Barton said the district still expects ongoing deficit spending in each projected year, and while district and state reserve targets are being met in the projection years, the contingency reserve is shrinking. Barton summarized assumptions used in the MYP: a 2.3% adopted COLA for 2025–26 (with modest increases thereafter), step/column salary growth assumptions (1% annual for certificated in projections, 2% for classified), a continued 5% annual health‑and‑welfare increase and anticipated enrollment decline pressures.
Howard Kelton and Barton both flagged state budget uncertainties. Howard Kelton noted the governor’s proposed $1.7 billion discretionary grant for districts and the legislature’s lower figure (reported as $500 million) — a material difference that could affect district revenue planning once the state budget is finalized. Barton listed several unfunded “unmet needs” drawn from the LCAP presentation — deferred maintenance contributions, digitization of district archives, additional social‑worker positions, safety upgrades and stipends — and said those items will need prioritization if funding becomes available.
Board members pressed for clearer cost information. Trustee Smith asked that each unmet‑need item be accompanied by estimated dollar amounts so the board can evaluate priorities and seek grants. Trustee Preciado asked the district to rank unmet needs by priority. Trustees also asked staff to continue refining school‑level data to guide targeted investments.
Separately during public comment, the teachers’ association praised settlement of the current contract and requested monthly budget discussions with trustees to align spending with staff recruitment and retention priorities.
The board received the fiscal presentation as an information item and will consider the adopted budget and LCAP for formal approval at the June 24 meeting.
