Board hears proposed $103.8M 2025–26 budget; district projects 13.6% reserve

Fallbrook Union Elementary School District budget staff presented the proposed 2025–26 budget on Tuesday, projecting total expenditures of approximately $103.8 million, LCFF revenue of about $68.3 million and a projected unrestricted ending fund balance near $13.8 million (approximately a 13.56% reserve) pending final state budget actions.

Assistant Superintendent of Business Services (transcript label: Mr. Armander) and fiscal staff framed the budget as the district’s action plan to implement the LCAP. Director Lindsay Pellan reviewed revenue assumptions—a projected funded average daily attendance (ADA) of 4,731, a state COLA of 2.3% and estimated LCFF revenue of $68.3 million including base, supplemental and concentration grants. Federal impact aid and a recent home-to-school transportation reimbursement were also cited as revenue items.

Key figures and context: presenters said the district serves roughly 5,042 enrolled students but uses funded ADA for state funding projections. Pellan said the district expects to lose approximately 80 students in ADA compared with the prior year, which reduces funding by more than $800,000 and largely offsets the small COLA; presenters reported the net LCFF increase is roughly $300,000 after enrollment adjustments.

On the expenditure side, the budget assumes step-and-column salary increases (an estimated $1.4 million), employer-paid benefit obligations, classroom staffing ratios (TK: 20; K–3: 24; grades 4–8: 29), funding for three reserve teachers, and a $649,000 allocation for retiree benefits. The proposed budget includes a $14.7 million internal contribution from the unrestricted general fund into restricted special-education supports to address rising special-education costs.

Reserves and comparisons: the proposed unrestricted ending balance of about $13.8 million represents a 13.56% reserve—above the state minimum reserve requirement for a district of this size (approximately 3%) and within the transcript presenters' comparison band for peer districts when including certain one-time reserves. Presenters noted some one-time restricted reserves (approximately $4.2 million in fund-17 special reserves) and cautioned that some funds are one-time and should not be treated as ongoing revenue in labor negotiations.

Next steps: staff said they will revise the proposed budget if the state enacts changes to the governor’s proposal and will return with a recommendation for board adoption on June 24. "We will continue to monitor the economy and refine our projections," a budget presenter said.

Questions from trustees focused on assumptions about ADA, use of one-time funds, and reserve policy; presenters reiterated that ADA drives state funding and that the district will protect one-time funds pending state budget finalization.