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Lennox business office warns falling enrollment, expiring one‑time grants will squeeze 2025–26 budget
Summary
District budget staff presented a proposed 2025–26 general fund budget and multi‑year projections showing declining enrollment, sunsetting federal and one‑time state funds and a structural deficit that will require prioritization of restricted and unrestricted spending.
The Lennox School District business office presented a proposed general fund budget for 2025–26 and a multi‑year projection at the board's June meeting, telling trustees the district faces a shrinking revenue base because of falling enrollment and sunsetting one‑time federal and state grants.
Miss Elias, a district business official, reviewed revenue and expenditure estimates, described LCFF calculations, and explained why the district's per‑pupil COLA (cost‑of‑living adjustment) can be effectively negative when enrollment declines. Elias said the district's estimated actual revenue for the current year was presented in the meeting packet and that the proposed revenue for 2025–26 reflects a multi‑factor drop driven in part by federal funds that expire and by one‑time local grants.
Elias told the board the district's spending continues to be driven by salaries and benefits and that the district faces a structural deficit in coming years unless enrollment and revenue stabilize. "Even though we're getting more money, our expenses are also growing at a faster rate," Elias said, summarizing the multi‑year forecast.
Staff explained restricted funds (grants with expiration dates) totalled roughly $25 million in the district's presentation and that some program dollars carry expiration dates; examples include educator effectiveness grants with spending deadlines noted in the packet. Elias said the business office and school leaders are prioritizing actions to preserve core services for unduplicated students while spending down restricted balances where appropriate.
Board members asked for clarification about the governor's May revised budget and what it means for the district, and staff advised the board that the district's adopted budget may change after the governor signs the final state budget. Elias described the 45‑day revision process and said the business office will update the board if the state budget alters projections.
The presentation also prompted a brief discussion of a separate personnel budget procedural action referred to in the meeting as a "declaration of indefinite salaries," a routine formal authorization many districts adopt to allow salary adjustments for unrepresented employees; staff described that the resolution is a procedural item used to enable future salary actions for employees who are not covered by a collective bargaining agreement.
Ending: The board scheduled approval of the proposed budget on the district calendar; staff said the adopted numbers will be finalized once the state signs its budget and after the district reviews final numbers in the summer.
