El Monte City School District projects multi‑million structural deficit as LCAP and budget move toward adoption

El Monte City School District leadership presented a draft Local Control and Accountability Plan (LCAP) and a detailed fiscal forecast on June 8, outlining recovery in some student outcomes but a notable multi-year structural deficit that will require difficult budget choices.

"The district is forecasted to end the current fiscal year with a surplus of $9.6 million," Fiscal Director Amy Johnson told the board, but she immediately qualified that number: "EMC has an adjusted bud[get] adjusted deficit of 25.38 million," and the general fund shows persistent deficits in the adopted and interim forecasts. Johnson warned that relying on fund balances to meet ongoing operating needs is unsustainable and would reduce flexibility to respond to unforeseen events.

Why it matters: the district faces a combination of expiring one-time federal and state funds, a long-term enrollment decline, and ongoing salary and benefit pressures. Johnson told the board that the district will see lower state and other one-time revenues (examples discussed included expiring ESSER and literacy-coach funding) while ongoing costs such as step-and-column salary increases and health-and-welfare expenses remain.

Key fiscal details presented - General-fund variances: the adopted FY25-26 budget showed a roughly $20.5 million deficit; second-interim had $20.87 million; the presenter reported a current-year general-fund deficit figure of about $21.43 million alongside the reported adjusted deficit of $25.38 million. - Measure M: Fund 21 includes $35 million from Measure M (voters approved the measure in November 2024) earmarked for capital projects—modernizing classrooms, outdoor learning spaces, performing-arts facilities—and cannot be used for day-to-day operations, Johnson said. - Revenue mix and concentration: LCFF remains the primary revenue source; federal and state grants (including Head Start and child nutrition funds) make up substantial portions of the remainder. - Expense drivers: salaries and benefits account for roughly 65% of district spending. Contracted services and one-time capital outlays (including a $10 million furniture refresh and planned IT investments) were noted as near-term pressures.

Johnson also described assumptions used in multi-year projections: a one-time higher COLA in the state assumptions, a 1.25% step-and-column for certificated staff in planning, and projected FTE reductions tied to enrollment trends. The district's multi-year projection assumes a continuing enrollment decline (an average ~3% year-over-year in the near-term projection and a 33% decline since 2015 in the historical series discussed).

Personnel and program effects Johnson discussed planned adjustments to align staffing with declining enrollment, saying the projection currently includes reductions to certificated staff to maintain student-to-staff ratios in line with district goals. "We are going to reduce by 15 certificated staff" in the near term as part of aligning FTE with enrollment trends, she reported during the presentation.

Board process and next steps The board opened two noticed public hearings (one on the LCAP annual update and another on the 2026-27 adopted budget) as part of the statutory review process. Staff told trustees the board is scheduled to adopt the 2026-27 LCAP and budget at a subsequent board meeting; any material changes after the governor's signature will be reflected in a 45-day budget revision in August and in unaudited actuals in September.

Quotes and context - "This trend of utilizing the district's fund balances to meet the needs of the operating budget is not sustainable long term for fiscal health," Amy Johnson said. - Johnson reiterated the distinction between capital-bond proceeds and operating revenue: "These monies may be used for the purpose of the measure such as modernizing classrooms... they may not be used for day-to-day operations."

What the board approved tonight Trustees held the required public hearings and approved several consent and action items related to operations (purchase orders, bargaining-unit tentative agreements, contract approvals). The board did not adopt the final budget at this meeting; staff will bring the adopted LCAP and budget for formal adoption at the next board meeting after the public hearings already held.

Outlook District staff and trustees emphasized that the projected shortfalls create an urgency for planning and may require difficult choices on staffing and recurring expenditures. Staff flagged that changes in state-level assumptions (final governor's signing) and the timing of one-time funding will shape adjustments reflected in the August 45-day revision.

(Reporting note: quoted figures and program names come from the board presentation as read into the public record on June 8, 2026. All budget figures were presented by Fiscal Director Amy Johnson.)