Beverly Hills Unified projects healthy reserves while board presses for clearer CTE grant accounting

Beverly Hills Unified School District reported projected revenues of about $100 million and a multiyear projection that keeps the district in "basic aid," while board members pressed staff for a clearer, itemized accounting of career‑technical education grant funds during a Feb. 24 budget study session.

The district’s director of fiscal operations, Marilou De Arcos, told the board the district came to the board in March with the second interim report and that "you will be seeing that budget in June, wherein we will adopt the budget for fiscal year 25 26." She summarized the district’s funding picture as largely property‑tax driven, noting the district’s basic‑aid position and projected property‑tax revenue growth over recent years.

De Arcos said the district’s combined unrestricted and restricted revenue at second interim was about $100 million and that the general fund’s unrestricted reserve percentage — the measure the board focuses on for fiscal health — is projected to be in the high‑20s (percent) across the multiyear projection. She warned the board that restricted program shortfalls must be covered from unrestricted dollars: "Unrestricted dollars cannot go negative," she said.

Why it matters: Being a community‑funded (basic‑aid) district means Beverly Hills Unified receives more revenue from local property taxes than it would under the state’s Local Control Funding Formula (LCFF) allocation tied to attendance (ADA). That produces higher revenue but also changes how state cost‑of‑living adjustments and enrollment shifts affect the district compared with state‑aid districts.

Key budget details presented

- Property taxes and basic‑aid: De Arcos displayed a four‑year property‑tax history and projected 24‑25 property taxes around $72 million, noting the district’s basic‑aid position rose from about 73% in 21‑22 to a projected 88% in 24‑25.

- Total revenues and expenditures: Staff presented combined projected revenues of roughly $100 million and total expenditures near $108 million at second interim; the general fund ending balance and projected reserves were shown in a multiyear projection (MYP) indicating reserves in the high‑20s to low‑30s percent range across the projection period. (All figures presented as second‑interim projections and subject to…