Monrovia Unified outlines proposed adopted budget, projects smaller deficit and funds set aside for federal risks

Monrovia Unified’s business department presented the proposed adopted budget, telling the board the governor’s May revision and state funding assumptions informed the plan and that revenues in the current year exceeded expectations while future years carry uncertainty.

Staff said cost‑of‑living adjustments (COLA) were assumed to return toward historic norms (2.3% for 2025–26 and roughly 3% in later years). The presentation noted district enrollment declined less than projected for 2024–25 but that staff conservatively project a continued annual decline of about 90 students going forward.

Director of Fiscal Services Glenda Herrera outlined fiscal components of the year‑end estimate and the 2025–26 budget: salary and benefit increases from collective bargaining were included, a reduction‑in‑force was modeled for 2025–26, state indirect cost rates were applied where allowed, and spring average daily attendance informed revenue projections. "We have committed $6,000,000 to protect against potential impact on federal funds," Herrera said, and staff maintain the required 3% reserve for economic uncertainty.

Herrera said restricted funds such as Prop 28 arts funding, learning recovery emergency block grants, expanded learning opportunity program monies and educator effectiveness funds account for much of the restricted balance. She told the board the overall deficit is shrinking and the district hopes to reach a balanced position by the end of the third year in the projection, but staff will revisit the budget if the state or federal picture changes.

Next steps include the board’s formal consideration of the LCAP and proposed adopted budget at the next regular meeting (the transcript indicates that vote is scheduled for tomorrow), an opportunity to revise the budget within statutory timelines if the state budget changes, and presentation of unaudited actuals in September.