Millbrae Elementary files positive certification for 2024‑25 first interim budget, flags one‑time grant and enrollment risks

Millbrae Elementary School District filed a positive certification for its 2024‑25 first interim budget on Dec. 17, the district’s chief business officer told the Board of Trustees, and the board voted to approve the report.

The 1st interim shows projected total revenues of about $33.3 million and combined expenditures near $34.5 million for 2024‑25, with an ending fund balance of roughly $11.7 million. Ralph, the district’s chief business officer, told trustees the district will submit a positive certification but highlighted multi‑year pressures driven by expiring one‑time state and federal grants and enrollment uncertainty.

The certification matters because it is the district’s formal statement to the county office of education that it can meet its financial obligations for the current fiscal year. Ralph told the board, “we will be filing for a positive certification at this first interim report,” and walked trustees through the revenue and expenditure assumptions behind the projection.

Ralph said Local Control Funding Formula revenue is slightly higher than the adopted budget — about $500,000 — largely because attendance (ADA) and enrollment exceeded the assumption used at budget adoption. He reported unrestricted general fund revenue at about $23.3 million and total LCFF (combined) of about $25 million. Federal and state restricted grants add roughly $4.3 million to the district’s 2024‑25 budget picture.

But the CBO highlighted that several significant revenue streams are one‑time or declining. The arts and music instructional materials discretionary block grant and portions of the learning recovery/after‑school funding (ELOP and related federal/state COVID‑era grants) are sampled as expiring or tapering; the district plans to spend much of those funds through 2025‑26 and must decide whether to continue positions or absorb costs in the general fund when the grants end. Ralph said the district set aside roughly $4.5 million in the ending fund balance to partially cover projected deficits in 2025‑26 and 2026‑27 in multiyear projections.

Trustees asked about the enrollment outlook. Ralph noted elementary enrollment is expected to remain relatively flat, Taylor Middle School will likely show a cohort decline next year (a numeric reduction in students moving from fifth to sixth grade), and LeMaita Park remains the most variable site. He briefed trustees on local housing developments (Gateway, the former Office Depot parcel, Broadway 99 units and the El Rancho project) and said new housing could moderate declines but that timing and unit type matter for student yield.

Ralph also reviewed other funds: the cafeteria (child nutrition) fund showed a healthy balance due to universal meals reimbursements; capital facilities (Fund 25) reflected $376,000 of expenditures for play and shade structures and was expecting a roughly $725,000 incoming check tied to a nearby development; and special reserves for capital outlay (Fund 40) retained a strong balance ($~12.6 million). He noted an audit extension has been filed and the 2023‑24 audit is expected in February or March.

Board members broadly thanked district staff for the work and pressed for planning to absorb any reductions when one‑time grants end. President Maggie Musa and other trustees emphasized that parcel tax revenue (about $830,000 annually) and the recently approved Measure J bond (certified later in the meeting) help the district but cannot be used to cover routine operating expenses. Trustees voted to approve the 1st interim report without recorded opposition.

The board directed staff to return with further detail on multiyear scenarios and options for addressing the loss of one‑time grant funding.

Ending: The board approved the 1st interim certification as presented; the district will report to the county office of education and revisit projections at the second interim in March 2025.