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Benicia Unified projects enrollment decline and multiyear budget pressure in proposed 2025–26 budget
Summary
The district presented the 2025–26 proposed budget and multiyear projections, reporting a projected enrollment decline, reliance on LCFF funding, a planned deficit for 2025–26 of about $1.6 million, and reserves that fall below board targets in later years unless conditions change.
Benicia — The Benicia Unified School District presented its proposed 2025–26 budget and multiyear projections June 12, warning trustees that projected enrollment declines and the end of one-time state grants will create ongoing budget pressure in coming years.
Ms. Barrington, staff member (business office), said the district’s average daily attendance (ADA) approached 95% this year but projected enrollment is declining; the presentation used an estimated enrollment of approximately 4,284 for 2025–26 and projected enrollment could fall to about 3,900 by 2028–29 as larger cohorts move out and fewer births are occurring locally.
The budget relies on the Local Control Funding Formula as the district’s largest revenue source and assumes a 2.3% cost-of-living adjustment adopted in the May revision. Barrington noted that because the state’s funding calculations use prior-year ADA to “hold harmless” districts in part, the district should see the stated COLA for 2025–26 but declining ADA will reduce future-year revenue growth compared with COLA increases.
Key figures presented included a beginning unrestricted general-fund balance of about $7.8 million for 2025–26; projected deficit spending of roughly $1.6 million in 2025–26 if current assumptions hold; and projected reserves of 9.38% at the end of 2025–26. Multiyear projections showed reserves falling to about 7.73% in 2026–27 and 6.25% in 2027–28 under current assumptions, at which point the district could no longer sustain the board’s target of one month’s payroll in reserve.
Barrington summarized revenue sources beyond LCFF: federal Title programs (Title I) and IDEA special education funding, local rents/leases (including cell towers), mandated block grants, lottery revenue, Medi-Cal billing, and revenue from Proposition 28 for arts. She said the district is not in the higher concentration funding tier because unduplicated pupil percentage is below 55 percent and noted some state trailer-bill language (ELOP thresholds) remains uncertain.
On expenditures, the district factored in rising pension contributions (PERS and STRS), step-and-column salary increases, an increased workers’ compensation rate, and a projected CPI of about 3.42% for supplies and services. Barrington reminded trustees that 3% of actual expenditures must be set aside for routine restricted maintenance and that portions of LCFF are earmarked for supplemental purposes and the Education Protection Account.
Barrington said the district will adopt a positive budget next week and then close the books June 30; the business office will return audited actuals in September and revise 2025–26 as needed. Trustees asked questions about long-term enrollment, the Rose Estates development timeline and whether new housing would affect future enrollment; Barrington said construction was unlikely to begin for a couple of years per city council comments and that the district will update projections as enrollment information changes.
No formal budget adoption vote took place June 12; trustees were asked to consider adoption at the June 17 meeting to meet the June 30 statutory deadline for an adopted budget.
