District presents second interim budget; staff recommends positive certification

The Brea Olinda Unified School District presented its second interim financial report for fiscal year 2025–26, and staff recommended the board certify the district’s finances as "positive." Assistant Superintendent Rick Champion explained enrollment declines driving revenue pressures, the interaction of LCFF entitlement and ADA, and structural budget risks in the out years driven by pension, health and special‑education costs.

Champion reported the district’s combined general fund revenue is projected near $100 million for the year, noted that 76 percent of revenues are unrestricted while many program dollars are restricted, and summarized Measure H bond cash flow and early PO obligations. He reviewed the multi‑year projection that shows a modest decline in reserves over the three‑year period but recommended a positive certification because current projections meet the 3 percent reserve requirement.

Trustees asked about enrollment trends and secondary cohort sizes, the district’s assumptions about COLA and LCFF calculations, and the implications if Governor and legislative estimates change. After discussion the board moved and seconded acceptance of the second interim report; the motion passed (recorded as carried by voice/roll call at the meeting).

The report will be part of the board’s budget oversight as the district aligns staffing and programmatic choices with enrollment projections.