District staff present proposed 2025–26 budget; board approves end‑of‑year transfers and education protection account report

The Millbrae Elementary School District’s business office presented the district’s proposed 2025–26 budget framework and related financial assumptions during the board meeting. Chief Business Officer Mary (CBO) and Director of Business Services Sue Kim reviewed May‑revision assumptions, revenue projections, expenditure drivers and multi‑year projections.

What staff presented - Revenue: staff presented projected total revenue by fund source of about $33.2 million and noted uncertainty in state revenues tied to the May revise; LCFF was described as the largest single source (roughly $24–25 million) with federal, state restricted and local revenues making up the remainder. - Expenditures: certificated salaries, classified salaries and employee benefits were shown to comprise the majority of general fund spending (more than 80% combined). Staff noted services and operating include contracted providers (paraeducator contracts and some special education contractors). - Assumptions and risks: presenters used a COLA assumption of 2.3% for 2025–26 (with higher COLA assumptions in later years for multi‑year projections) and flagged possible higher healthcare costs, reduced one‑time grants and uncertainty in state and federal revenues as risk factors. Staff said the district is planning a conservative budget and continuing to monitor the state budget before final adoption.

Board action taken tonight Although the final 2025–26 budget adoption is scheduled for the June 17 meeting, the board took several formal votes at this session: - Approval of the agenda and the consent agenda (motions carried; audio records show unanimous “ayes” but no numeric tally was recorded in the meeting transcript). - Resolution 24‑05‑12 (budgetary increases and transfers at year end): the board authorized the San Mateo County Superintendent of Schools to make transfers between funds at the end of the fiscal year; the motion carried. - Resolution 24‑05‑13 (Education Protection Account spending determinations): the board approved the required public‑session spending determination for the district’s Education Protection Account; the motion carried. - Annual Declaration of Need for Fully Qualified Educators: the board approved the district’s annual declaration, which formally records anticipated need to authorize certain fully‑credentialed teachers to teach outside their credential area if necessary. Staff said smaller changes (under 10% of the declared need) do not require a revised declaration, but larger changes would be returned to the board for approval.

Questions from trustees Trustees asked about specific funds and programs: fund 19 (restricted donations) and how principal site allocations work; Prop 28 arts funding and the district’s challenge hiring art/music teachers; summer maintenance and capital projects scheduling; and the 60% requirement (the compliance ratio that measures staff who work directly with students). Staff explained contracted vendors (for example Music for Minors) are treated differently in the calculation than employees on district payroll; staff also noted a prior waiver had been granted for a shortfall in the 60% calculation because the district documented recruitment efforts and contractor usage.

Next steps Staff said they will return with the formal LCAP and adopted 2025–26 budget on June 17, after the state budget is finalized. The business office noted they will provide board members with a facilities/summer‑projects update and a calendar of work.