Fallbrook district previewed proposed 2024'5 budget, staff flagged a projected shortfall and reserve drawdown

Mr. Ad Manaras, assistant superintendent of business services, presented the Fallbrook Union Elementary School District raft budget for 2024—5 and framed it within the state fiscal context described in the governor May revise.

Manaras reviewed revenue assumptions cited in the presentation: LCFF was estimated at a little over $68 million, local property taxes were described as more than $22 million, and Impact Aid projections were listed at about $4.5 million. He said the district—xpects some additional transportation reimbursement (roughly $600,000) but noted total transportation costs exceed $3.1 million.

On expenditures, staff listed salary and benefit cost drivers including step/column salary movement, substitute costs and a minimum-wage increase; health-benefit contributions per benefited employee were also discussed. Manaras said projected unrestricted revenues were approximately $61.4 million while unrestricted expenditures were cited near $64.5 million, and that the district planned to use part of a beginning fund balance (reported around $9.6 million) to cover a projected gap, leaving an expected ending general-fund balance of about $6.5 million.

Manaras also summarized the state-level funding issue referenced in the presentation: the governor s described in the May revise dvocated a Proposition 98 funding maneuver to spread an $8.8 billion overpayment across future years; staff noted legal and timing risks and said the district would monitor legislative developments and the Legislative Analyst Office.

Following the budget presentation trustees asked clarifying questions about revenue categories, reserves and timeline. Manaras reviewed reserve policy (minimum 3% for economic uncertainties; a 10% maximum discussed) and explained next steps: staff will post budget documents, collect feedback and return the finalized budget for board action on June 27, 2024; state deadlines for final action and the governor signature were noted.

At the meeting the board approved several fiscal resolutions (numbered in the agenda as 29'2) designating authorized agents and other clerical actions; the board also later approved the consent agenda and adjourned.

What happens next: the board is scheduled to consider final adoption of the 2024—5 budget at its June 27 meeting; staff said they will revisit the budget in July/August to align with the state's enacted budget and present a revised budget with unaudited actuals in September.