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Lancaster board hears first interim budget showing $295.35M in revenue and $42M projected 2025–26 deficit
Summary
At its regular meeting the Lancaster School Board received the district's first interim budget showing $295.35 million in projected revenues and $337.39 million in budgeted expenditures for 2025–26, producing a budgeted deficit the district says is driven by liquidation of prior one-time funding.
The Lancaster School Board on Monday received the district's first interim budget report for fiscal year 2025'1, presented by the executive director of fiscal services, Maria.
Maria told trustees the district expects total revenues of about $295.35 million for 2025' 26 and budgeted expenditures of about $337.39 million, producing a planned deficit of roughly $42.05 million. She said the shortfall reflects the planned liquidation of prior one-time funds, including multi-year federal and state grants the district used during pandemic recovery.
"I'm here to present the first interim report for the 2025'26 fiscal year," Maria said, outlining the staff assumptions used to construct the multi-year projection and the 2.30% LCFF COLA assumed for 2025'26. She walked trustees through state, federal and local revenue streams and several new one-time grants the district received for student supports and professional development.
Maria gave a line-by-line breakdown: state funds remain the largest revenue source; federal categorical programs total roughly $14.21 million; and local receipts, including a cybersecurity grant and a $3.84 million reimbursement related to prior billing, total about $23.11 million. Unrestricted expenditures are budgeted at about $191.41 million and restricted expenditures at about $145.98 million.
Board members pressed staff on the "equity multiplier" and attendance forecasts. On eligibility for the equity multiplier Maria said it "is allocated to the site that has more than 25%" of the qualifying measure and noted that sites must submit a plan for use of those funds. On attendance, staff said the district's attendance plan and targeted interventions are increasing ADA projections, which supports higher projected revenues over the multi-year outlook.
Maria said the district's projected available reserve for economic uncertainties stands above the state minimum: the staff presentation showed an available reserve of about 4.79% in the third-year projection, compared with the state's 3% minimum for districts of this size.
Board members acknowledged the report and thanked staff for pursuing additional grants. Maria and trustees noted that the figures in the first interim remain projections and will be updated at the second interim as state and local information is finalized.
The board did not take a separate vote on the budget presentation itself at the meeting; staff said any formal certifications or changes will be reflected in subsequent interim reports and resolution language brought back to the board as required by state reporting schedules.
