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Buena Park board approves first interim budget; officials flag multiyear deficit and declining reserves
Summary
The board accepted the district’s First Interim Financial Report for 2025–26 showing roughly $82.4M in revenue versus $90.6M in expenditures this year (a roughly $8M current-year deficit) and multiyear reserves projected to fall to about 13.1% by 2027–28.
Assistant Superintendent of Business and Operations presented the district’s First Interim Financial Report for 2025–26, telling the board the report reflects actuals as of Oct. 31 and multiyear projections based on current enrollment and funding assumptions.
Key figures in the presentation: LCFF (Local Control Funding Formula) revenue was estimated at about $53.9 million; the presenter listed total current-year revenues around $82.4 million and total expenditures near $90.6 million, which a board member confirmed corresponds to an approximate $8 million current-year shortfall.
The presenter described revenue changes that offset some pressures: an LCFF increase of about $294,000 tied to unduplicated pupil percentage and TK growth, a local one-time increase estimated at $472,000 (mainly interest and other local revenue), and several restricted revenue increases including roughly $193,000 for special education and $57,000 for Title programs. State and federal block grants and support programs were also included in the revenue picture.
On expenditures, the report showed personnel costs remain the largest component: unrestricted salaries and benefits rose roughly $491,000 from the adopted budget; restricted salaries and benefits were up about $779,000; and capital outlay and supplies/service increases were also noted.
The report projects district reserves of 18.93% in the current year, dropping to 16.88% in 2026–27 and to about 13.14% in 2027–28 under the presenter’s assumptions. The presenter said the district issued a "positive" certification indicating it can meet financial obligations for the next two years under current assumptions.
During questions, board members asked whether federal fiscal policy changes would affect district revenues; the presenter said there is not yet sufficient data to change projections. Trustees also discussed whether recent TK enrollment increases represented a one-time surge; the presenter said the TK boost appeared to be a one-time effect and was not fully carried forward in projections.
After discussion the board approved the First Interim report by motion (voice/roll-call recorded as unanimous). Staff said they will return with the second interim report as the year progresses and enrollment and ADA data are updated.
