Lennox board hears 2024'15 unaudited actuals showing short-term surplus, but projects future deficits as enrollment falls

Assistant Superintendent of Business Maria Elias presented the district's 2024'25 unaudited actuals, reporting total general fund revenues of $102.4 million and improved ending balances compared with the district's adopted estimates but cautioning that the district is still projected to deficit spend in future years.

"The unaudited actuals represent our cumulative activity for the fiscal year ending 06/30/2025," Elias told trustees, noting the report remains subject to the annual audit. She said unrestricted revenue totaled $55.4 million and restricted revenue $46.9 million, with total general fund expenditures of about $98.3 million. The district closed the year with roughly a $4.3 million positive variance on the unrestricted side and $273,000 positive on the restricted side versus previously estimated actuals.

Staff described several causes for the differences. LCFF (state) funding fell modestly because of a decline at P2 enrollment; local revenues rose, driven in part by a $1 million fair-market-value adjustment from the county treasury and higher-than-budgeted interest and local fee receipts. On the expenditure side, staff said some encumbrances and contracted services were lower than budgeted and that some costs were reclassified between restricted and unrestricted funds.

Board members pressed for detail about how the revenue and staffing changes affected classrooms. Personnel staff and site administrators described midyear adjustments: Lennox Middle School's enrollment came in lower than expected, prompting the district to reduce two teacher positions (one resignation and one release discussed in closed session); at the elementary level, K'1 grades exceeded the MOU cap while grades 4'/5 were significantly under, leading to a combined 4/5 class at Huerta and a teacher transfer to a K'1 assignment.

"These decisions are challenging, but necessary to balance our commitment to the students, our obligations under the MOU, and our responsibility to the district's fiscal health," personnel staff said during the presentation.

Special education staffing remains a concern: staff said the statewide shortage of special-education teachers has led to vacancies and increased reliance on interim coverage while the district searches for a new director of special education. The business office said it is coordinating with personnel and instructional services to tighten position control, monitor encumbrances, and complete an ICMAC study to assess special-education program operations.

Elias emphasized procedural next steps: the district must file the unaudited actuals with the county by Sept. 15 (LACOE then forwards to the state by Oct. 15), auditors will review and may require adjustments, and the district will present a first interim later in the fall to reflect any changes.

Board members generally acknowledged the improved year-end position but urged caution. One trustee called the positive variance a function of moving dollars across categories and asked staff to continue monitoring encumbrances and contracted services. Staff said many one-time funds are sunsetting, which contributes to the projected deficits in later years.

The presentation did not include formal board action beyond acceptance of the report and a question-and-answer session.