Board approves second-interim budget report and $2.1 million first-phase rightsizing plan

The Buena Park School District Board approved its second-interim budget report and a rightsizing plan intended to address multi-year structural deficits at the March 10 meeting.

Budget director (presenter) explained the second-interim results and projections: the district’s total revenue projection for 2024–25 is $80.7 million and total expenditures are about $86.5 million, producing an excess of expenditures over revenues of roughly $5.8 million. The presenter said the general-fund unrestricted beginning balance was $23.3 million and that, after accounting for transfers and restricted programs (notably special education and a required 3% restricted maintenance transfer), the district’s total beginning balance was about $44.6 million.

The presenter detailed revenue changes since the first interim: a $72,000 increase in federal allocations via the consolidated application, a $350,000 increase in Medi‑Cal reimbursements, and small changes in other local and state revenue lines. On the expenditure side, the budget showed increases tied to teacher device replacements and a CalSHAPE HVAC grant; certificated salaries were listed at $30.4 million, classified salaries at $10.9 million and employee benefits at $21.9 million.

Budget staff told the board that the tentative labor agreements approved earlier that evening were not included in the second‑interim projections and that the district would incorporate them into a revised multi‑year projection. The presenter said the district projects ongoing deficit spending but identified approximately $2.1 million of phase‑1 rightsizing reductions, including district-office reorganization savings (about $984,000), elimination of an ongoing consumer-price-index departmental increase (about $229,501), reduced contracted services (about $471,000) and staffing adjustments tied to declining enrollment (about $208,000). The plan’s phase 1 reductions together aim to reduce structural spending by approximately $2 million per year, with a two‑year target of roughly $4 million.

With those adjustments reflected, the presenter recommended a "positive" certification for the second interim; trustees voted unanimously to approve the budget report and rightsizing plan. The presenter also described reserve projections: after the plan, district reserves were projected to decline from 23.02% to about 21.84% in the current year, with 16.34% in 2025–26 and about 13.2% in 2026–27 under current projections.

Trustees discussed the distinction between one‑time uses of reserves (for device replacement and a planned textbook adoption) and ongoing structural deficits. Trustees asked clarifying questions on reserve composition, fund balances for other funds (child development, cafeteria, bond building, capital facilities, deferred maintenance) and implementation timing; staff said some funds (for example, bond proceeds) will change as bond issuances occur in spring.