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Lynwood Unified staff warn of tighter budgets, falling enrollment and reserves in budget update
Summary
District finance staff told the board the May revision lowers TK-12 funding and enrollment declines will shrink revenues; Lynwood projects reserves to fall from ~14.6% this year to under 10% and then ~5% in later years, while Prop 98/Prop 30 uncertainties could cost the district roughly $20 million if not resolved.
Lynwood Unified officials told the board on June 5 that the district faces a volatile fiscal picture driven by falling enrollment, reliance on personal income tax and state-level funding decisions.
Assistant Superintendent of Business Services Dr. Gretchen Johnson briefed the board on the governor's May budget revision and local estimates. She said the governor proposes a 2.3% cost-of-living adjustment and a possible one-time discretionary grant; at the same time, Lynwood and other California districts are seeing reduced TK-12 funding compared with January projections and a $4.4 billion drop in projected TK-12 funding in the May revise. District staff highlighted that if a future local/state ballot measure similar to Proposition 30 does not pass, Lynwood could face about a $20 million budget shortfall.
Johnson and staff pointed to steady declines in births in the city and projected declines in enrollment and ADA that reduce per-pupil revenue. Local projections summarized in the presentation show the district's unrestricted general fund reserves at about 14.6% for the current year but declining to roughly 9.7% and 5.1% in the next two fiscal years under current assumptions.
The district emphasized constraints: about 80% of unrestricted dollars support salaries and benefits, and rising costs for special education, retirement contributions and step increases pressure the budget. Staff said the board will return in late June for formal budget adoption and will present the first interim update in December.
Board members and staff discussed priorities including protecting classroom programs, attendance outreach to restore ADA, continued advocacy for Prop 98 funding, and close coordination with bargaining units to address rising costs.
Separately, staff presented the Local Control Accountability Plan (LCAP) update, which aligns district goals, expenditures and actions for English learners, foster youth and low-income students. The LCAP team reported collecting 2,192 community surveys and described six LCAP goals that include academic interventions, English learner supports, expanded counseling and college/career readiness programs. Board members pressed on assessment results and the need to update curriculum and invest in professional development to raise proficiency rates.
