Benicia Unified projects $3.1 million operating shortfall as enrollment declines; parcel tax and foundation eyed

Benicia Unified School District Superintendent Damon Wright warned attendees at the district’s State of the District event that the district faces a projected $3,100,000 operating deficit and shrinking reserves unless steps are taken to stabilize revenue and reduce costs.

Wright said the district’s funded average daily attendance (ADA) is 4,129 and that current enrollment is 4,347 students, a decline he estimated as 15.3% from the district’s peak. He told the audience that about 15% of students live outside district boundaries as inter-district enrollees, which he credited with blunting a steeper drop in enrollment.

Those enrollment patterns, plus the scheduled end of several one-time grants and an unresolved shortfall in special-education funding, are central to the district’s fiscal strain, Wright said. “Since 2020, our district received approximately $14,000,000 in one-time funding,” he said, adding that those grants “are not ongoing. Once the grant period ends, so does the funding.”

Why it matters: school funding in California primarily flows through the Local Control Funding Formula (LCFF) and the Proposition 98 guarantee; fluctuations in ADA and the expiration of temporary dollars can materially change a district’s revenue. Wright said the district projects revenue of $63,300,000 this year, with the LCFF base grant comprising about $50,300,000 of that total. He warned that unrestricted reserves could fall from about 10% at the end of the current year to roughly 5.33% by the end of the 2026–27 fiscal year if no corrective action is taken.

Key drivers and proposed steps - Special education: Wright said the Individuals with Disabilities Education Act (IDEA) promises federal support but covers far less than the 40% of special-education costs that districts expect; in Benicia’s case the district currently allocates about $8,100,000 from the general fund to cover the gap. - One-time grants: Programs funded by pandemic-era and other short-term grants — including wellness-center staffing, extra elementary teachers to avoid combination classes, campus supervision, teacher coaches and intervention assistants — will lose funding when grants sunset. - Near-term staff decisions: Wright said the district will notify staff working on those programs by March 15, 2025, and would eliminate positions effective June 2025 if necessary to align staffing to expected revenue.

To stabilize finances, Wright outlined a multi-pronged approach: a comprehensive expenditure review to find savings and improve efficiency, continued attendance outreach (including short-term independent study to recover ADA), advocacy for increased state and federal funding, and exploring new local revenue sources. He singled out two major local options: reestablishing a district education foundation to coordinate private fundraising, and surveying the community about placing a parcel tax on a future ballot.

On parcel taxes, Wright described two common models: a flat-rate fee per parcel and an equity-based square-footage model with a cap and exemptions. He said Benicia has approximately 10,500 parcels and that a professional community survey in fall 2025 would precede any ballot decision. “Taxes are controversial,” Wright said. “Without surveying our community, we cannot determine if pursuing a parcel tax is a viable option.”

Wright emphasized that the initial cost-reduction proposals are intended to stop deficit spending and preserve a basic level of programs, not to expand services. He urged community involvement in the proposed education foundation and in any parcel-tax discussion.

Ending: Wright closed by reiterating the district’s academic gains and arguing that financial stability is needed to sustain those gains. “We’re the top performing district in Solano County,” he said, while warning that “providing anything less than the best possible program for our students and community is unacceptable.”