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Long Beach Unified projects multi‑year deficit; staff outline stabilization plan
Summary
Chief financial staff presented a second interim showing a long‑term enrollment decline of about 16,000 students since 2016, restricted funds and one‑time investments that complicate balancing, and a fiscal‑stabilization plan that may require roughly $40 million in additional reductions across years; the board accepted a monitoring report and will proceed with budget steps through May and June.
Margaret Lim, presenting the district’s second interim financial report, told the board the district has experienced an enrollment decline of roughly 16,000 students since 2016 and is projecting continued fiscal pressure that requires early action.
Lim outlined revenue assumptions and projections: a general‑fund revenue mix with about 70% from local control formula sources, 21% state, 6% federal and 3% local; current budget projections use an attendance assumption of 81.9% for planning. She said expenditures for salaries and benefits remain the largest share (about 78%), and projected increases in benefits (around 7%) and other costs will widen deficits unless mitigation steps are taken.
Lim described a fiscal stabilization plan that includes hiring freezes, position vacancies and targeted reductions. In scenario modeling presented to the board, staff said the district could still face a significant gap in later years and noted an example figure of roughly $40 million in additional reductions required to meet targets for a particular budget year absent other revenue or enrollment changes.
Board members asked detailed questions about technology investments, restricted one‑time funds and the makeup of central‑office positions. Lim and other staff said some recent investments — including a technology project budgeted in the low‑to‑mid‑tens of millions (presented as a $32M–$42M range) — were intended as one‑time costs to modernize inefficient legacy systems and avoid larger recurring support costs.
During the meeting the board accepted a monitoring report on Goal 3B (student growth and instruction) by a roll‑call vote, recorded as 4–0 in the transcript. Staff said the budget process continues with an update expected in April, public hearings in May and final budget adoption scheduled for June.
