Central Unified presents 2025–26 budget and LCAP; staff flags multi‑year risk amid uncertain state revenues

Central Unified officials opened public hearings June 10 on the district’s proposed 2025–26 Local Control and Accountability Plan (LCAP) and on the 2025–26 proposed budget, presenting a fiscal picture that the district called manageable in the near term but carrying risk in later years.

Assistant Superintendent Nick Ball brought the LCAP to a public hearing as part of the annual budget adoption process and presented the district’s draft budget and multi‑year projection. The administration said it will return the budget and LCAP to the board for adoption at the June 24 meeting after completing the hearing process.

Why it matters: The budget and LCAP set fiscal priorities and spending plans for schools, staffing and student services. Staff told the board the district can adopt a positive certification for 2025–26 (meaning it expects to meet its financial obligations this year and for the next two years) but the five‑year projection shows shrinking reserves that merit planning and possible adjustments.

Key figures and assumptions presented at the hearing: - Projected enrollment: 16,074 students. - Projected average daily attendance (ADA): roughly 92.25%. - Unrestricted general‑fund beginning balance (7/1/2025): $57,500,000. - LCFF revenue (projected): $230,000,000. - Projected ending general‑fund balance for 2025–26: approximately $51,900,000. - Board‑approved reserve target: 5% of expenditures, shown as $16,500,000 for 2025–26. - Staff presented a five‑year projection that shows reserves declining each year and falling close to or below the board target in later years if current assumptions hold.

Budget drivers and risks: Staff listed continuing cost pressures — step and column salary costs, STRS and PERS contributions, health and welfare increases, special‑education and transportation costs — and noted the state is using one‑time reserves in the current budget. Assistant Superintendent Ball told trustees the state’s use of one‑time dollars to cover ongoing expenses is a risk because that reserve is temporary.

Board members requested additional detail. Trustee Carrillo asked that staff clearly identify how much of the district’s revenue is federal; staff later reported the district receives about $15.2 million in federal funds and said most of the items in the multi‑year projection are general‑fund obligations. Trustees also pressed staff for a clearer plan to increase attendance and to review staffing levels to help the bottom line. Administration agreed to bring back the one‑page breakdown of federal funding and to return the full budget for adoption on June 24.

Public hearing and next steps: The board opened and closed the public hearings on the LCAP and budget during the June 10 meeting and moved to schedule adoption for the June 24 board meeting after staff answers remaining questions and provides the requested federal‑funds breakdown and related clarifications.

The district’s staff emphasized that small changes in enrollment and attendance can materially affect revenues and that the board’s policy reserve target (5%) is a central planning constraint as staff develop a multi‑year strategy.