OUSD reviews 45-day revised budget after state enacted budget; staff flags enrollment decline

At the Aug. 15 Orange Unified School District board meeting, fiscal staff presented the 45-day revised budget required after the state enacted its budget and highlighted implications for local revenues, reserves and enrollment.

Presenters noted that because the governor adopted the state budget in July, districts must present enacted changes within 45 days under Ed. Code 42127, the presentation said. Staff said the enacted budget includes a slightly higher cost-of-living adjustment (COLA) for 2024–25 and projected a combined, multi-year revenue increase the slides characterized as roughly $4 million over three years and just over $1 million for 2024–25. The presenters also reviewed Prop. 98 developments, including a temporary suspension of the Prop. 98 guarantee and the use of deferrals to manage cash flow.

Budget staff emphasized that although OUSD’s reserves are sufficient to meet near-term obligations, continuing declines in enrollment — driven by demographic factors noted in the presentation — will require monitoring and planning. The fiscal team said it will pursue revenue-enhancement opportunities, expenditure reductions and onetime revenues as part of a five-year stabilization plan and will provide updated budget reports in upcoming board meetings.

Board members asked for additional details on how the district will protect programs from cuts as enrollment declines and asked staff to pursue grant and other revenue strategies. Staff said a more complete set of budget closing documents will be presented in September and additional monitoring reports will follow.

Next steps: staff will return with the September closing report and ongoing updates planned for December.