Redondo Beach Unified board hears first interim budget, approves positive certification

Dr. Annette Alburn, deputy superintendent for administrative services, told the Redondo Beach Unified Board of Education on Dec. 11 that the district's 2025–26 first interim budget — which covers transactions from July 1 through Oct. 31 — shows a projected $3,450,000 decrease in ending fund balance across restricted and unrestricted funds but an increase in unrestricted dollars driven largely by LCFF cost-of-living adjustments and one-time block grants.

Alburn said the first interim is the first of two statutorily required interim reports and is due Dec. 15. She said assumptions behind the report reflect ratified collective bargaining agreements; CSEA had not yet ratified, so any CSEA increases were not included. The presentation included the district’s enrollment and revenue assumptions, retirement contribution outlooks (CalSTRS and CalPERS), and a three-year projection showing continued planned deficit spending to absorb negotiated salary and benefit increases.

"The first interim report includes all of the transactions between July 1 and October 31," Alburn said, and she told the board the district uses the funding method (three-year rolling average or highest prior year) that yields the higher funded enrollment for LCFF calculations. She noted a working enrollment-reduction assumption of 0.75% for upcoming projections.

Alburn presented a beginning fund balance of $41,200,000 and a projected ending fund balance of $37,700,000. Of the projected ending balance, $18,100,000 is committed or restricted; the district’s uncommitted reserve for economic uncertainty is projected at 13.78% at year end. "The legal requirement for a district our size is to have a 3% minimum reserve, and our board's goal is to maintain a minimum of an 8% reserve," she said.

Board members pressed on potential impacts that could reduce reserves, including pending strategic initiatives (such as a math curriculum adoption and related training) and unanticipated legal settlements. Alburn said regular legal costs are included in projections and that the board would discuss options (including committed funds) if a large settlement arose. She also flagged federal shifts she’d read about in the Department of Education and Office for Civil Rights that could affect operations, and estimated federal funding comprises roughly 3–4% of the district budget (about $5 million), which would be significant but not catastrophic.

Chair opened the public comment period; no members of the public were present and no written requests were submitted. The board moved the consent item to begin discussion on adopting the 2025–26 first interim budget financial report for positive certification. After a motion and second, the board approved the item by voice vote; the chair announced, "Motion passes." The item was adopted as the board’s consent action for the meeting.

Alburn noted next steps in the budget calendar: the governor's budget developments in January–May, a second interim certification in March that will incorporate January figures, and the usual 45‑day adjustment in the summer if the legislature’s budget differs materially from projections.

The meeting adjourned at 8:59 a.m.