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Azusa Unified projects enrollment‑driven revenue drop despite modest COLA; district outlines 2025–26 budget assumptions
Summary
District finance staff presented the proposed 2025–26 budget, projecting $96.1 million in LCFF funding and a districtwide revenue decline tied to falling enrollment. Staff warned of a multiyear shortfall in 2027–28 that would require additional reductions if not addressed.
Azusa Unified School District finance staff presented the district’s proposed 2025–26 budget Tuesday, saying modest state cost‑of‑living adjustments (COLA) will be outweighed by a projected decline in enrollment that reduces overall funding.
Finance staff member Jamelle told the Board the district projects LCFF (Local Control Funding Formula) revenue of $96.1 million for 2025–26 and a funded average daily attendance (ADA) that could place total enrollment near 5,700 students. “We have to estimate how we’re gonna close out 24‑25 to project what we’re going to do for 25‑26,” Jamelle said, noting numbers remain projections until the governor signs the final state budget.
Staff walked the board through key assumptions: a projected COLA applied to per‑ADA funding, relatively flat CalSTRS employer contribution, a modest change in CalPERS for classified staff, and minimum wage increases that will affect salary budgets. Jamelle said the district’s LCFF revenue would fall by about $3.7 million compared with the current year because of the enrollment decline, and federal funds in the projection drop from $17.1 million to $7.5 million. Overall projected revenue drops from roughly $149 million (projected 24‑25 close) to about $130.8 million in 25‑26 under the scenario staff presented.
On expenditures, the staff presentation showed personnel costs remain the largest line items: certificated employees (41% of budget), classified staff (14%) and employee benefits (22%). Staff projected a modest reduction in total expenditures from an estimated $153.6 million this year to $149.6 million next year.
Jamelle outlined the district’s multiyear projection and said that, under current assumptions, the district meets reserve requirements for 2025–26 and 2026–27 but faces a projected shortfall in 2027–28 that would require reductions of about $12.5 million to maintain a 3% reserve. She said staff will continue line‑by‑line reviews and look for one‑time funding to smooth transitions.
Why it matters: Enrollment declines will reduce state funding and require the district to align ongoing expenditures with fewer students. The district recommended the board receive the proposed 2025–26 budget and continue multi‑year planning to manage the projected gap.
Speakers quoted in this article are those on the record during the budget presentation.
