Assistant Superintendent of Business Services Dr. Howard Ho and Director of Budgeting and Accounting Luis Diaz presented Lawndale Elementary School District's 2025'26 first interim financial report and recommended the board approve a "positive" certification covering revenues and expenditures through Oct. 31. "Tonight's recommendation to the board of trustees is to approve LESD's first interim positive certif certification," Dr. Ho said during the presentation.

The presentation summarized key assumptions: a statewide COLA of 2.3 percent for 2025'26, continued enrollment decline affecting per-pupil revenues, and rising employer pension costs (CalPERS). Diaz said the district's 2024'25 LCFF revenue totaled $62,700,000 and that, after factoring in the 2.3 percent COLA, the district's revenue projection for 2025'26 had nevertheless dropped by roughly 0.5 percent because of declining enrollment and higher operating costs. The transcript records enrollment/ADA phrasing as "20 42 55, 4,255 students"; staff and trustees discussed that the operational figure most relevant for funding is funded ADA rather than raw enrollment.

District staff highlighted several district-level adjustments: an expansion of transitional-kindergarten (TK) that increased total TK classes to 11 (each capped near 20 students), reallocation of book-and-supply budgets, and increased expenditures in services and central operations (transportation, insurance and utilities) and capital outlay for kitchen upgrades. Diaz said Lawndale won a SELPA RFP for AU administrative fees, and those revenues were incorporated into the out-year projections. The first-interim multiyear projection shows $1,200,000 in identified savings but still a structural deficit of $7,200,000 that staff said they will continue to address.

Trustees questioned staff about TK-class counts, dual-immersion program placement at Mitchell and Twain, and whether districts in county fiscal stabilization plans are publicly listed; staff said they would follow up and noted the district expects to report a second interim in March. Board members praised the clarity of the presentation and thanked the accounting team. The presentation materials were accepted and will be reflected in the district's second interim and ongoing budget work.

The board took no action in this meeting that adopted new spending commitments tied to the first interim; staff recommended the positive certification and scheduled further review in March.