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Fallbrook CBO presents 2026–27 proposed budget showing planned deficit spending, reserves held at 3%
Summary
Chief Business Officer Brenda Mefford presented the proposed 2026–27 budget, forecasting $41.66 million in revenues and $43.70 million in expenditures, multi‑year projections that assume deficit spending and a maintained 3% reserve, and noted key revenue sources including LCFF, federal Impact Aid and Prop 28 arts funds.
Chief Business Officer Brenda Mefford presented the Fallbrook Union High School District’s proposed budget for fiscal year 2026–27 at the June 10 board meeting, outlining revenues, expenditures and multi‑year projections.
Mefford said combined unrestricted and restricted revenues are projected at $41,662,940 for 2026–27. The district’s Local Control Funding Formula (LCFF) was described as the major revenue source (about $31.1 million base, $31.3 million combined when including restricted components). Federal revenues were estimated at roughly $1.1 million, with additional state and local revenue streams identified in the presentation.
Total expenditures were presented at $43,698,000, creating a planned deficit for 2026–27 under current assumptions. Mefford walked the board through the multi‑year projection that assumes a three‑year view: the presentation included a projected reduction of five certificated FTEs in 2026–27 (savings from retirements and RIF) and assumptions on statutory COLA rates and PERS/STRS employer rates. The CBO also noted approximately $6 million in supplemental/concentration funds that must be targeted to low‑income, foster and English learner students, and described allocations for the learning recovery block grant (about $2.86 million total allocation; $1M spent so far) with a 2028 expenditure deadline for those one‑time funds.
Mefford explained that Impact Aid (federal) for military‑affected students and other restricted sources are budgeted in appropriate restricted funds, and that the district has roughly $3 million in its food services fund balance. The presentation also addressed the district’s solar loan (about $6.7 million borrowed with annual debt service near $437,000) and estimated electricity cost savings of approximately $350,000 per year due to solar generation.
On reserves, Mefford said the district is budgeting a 3% reserve for economic uncertainty ($1,310,940) and an ending combined fund balance of roughly $5.5 million (including restricted amounts). She noted a planned unassigned fund balance of about $1,233,333 for 2026–27 and projected the district would remain above the state‑required reserve through the multi‑year projection by applying prudent reductions and contingency assumptions.
Trustees asked detailed questions about the staffing assumptions, the projected savings referenced in recent public debate about schedule changes, and whether proposed COLA adjustments (a statutory 2.87% and a potential additional 1.44% 'super COLA') would alter the long‑range outlook. Mefford said the board can adopt the budget based on the conservative COLA assumption but, if the larger COLA or additional one‑time funds are finalized after July 1, staff will present a budget revision within the allowable revision period.
What happens next: the budget as proposed will be returned for formal adoption at a later meeting (noting this was a public hearing). Staff signaled that, if state revenue revisions occur, the district will use the budget revision window to incorporate changes and will return any changes to the board for review and action.
