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Brea Olinda USD projects $108 million budget, cites LCFF reliance and enrollment risks
Summary
District staff presented a $108 million budget projection for 2026–27 driven largely by LCFF revenue, cited a one‑time student support block and an increase in special‑education funding in the state May Revision, and warned that declining enrollment and state funding volatility pose risks to future years.
The Brea Olinda Unified School District on Thursday presented a $108 million budget projection for 2026–27 that depends heavily on state LCFF funding and includes one‑time block grants for student supports.
Assistant Superintendent of Business Services Rick Champion told the board the district expects roughly $108 million in revenue and matching expenditures, with about 73% of revenue coming from the Local Control Funding Formula. "Overall $108 million is projected for total revenue with, 73% coming from primarily from the LCFF," Champion said during the presentation.
The presentation summarized May Revision items from Sacramento that the district incorporated into its assumptions: a statutory cost‑of‑living adjustment (COLA) increase, a 1.44 percentage‑point base grant addition (described in state materials as a base‑grant increment), expanded special‑education funding and continued support for extended‑learning opportunities (ELOP). Champion said the state also proposed a one‑time $5 billion student‑support/professional‑development block grant that districts may use for math implementation and other professional learning; he noted not all districts qualify for every discretionary program.
Champion described the district's projected ending fund balance at roughly $23 million for next June with approximately $9 million restricted to specific programs. He explained reserves are required by law and that the board is recommending a $2 million committed fund to comply with Prop 2 (the rainy‑day fund limit) while retaining required minimum reserves.
Board members pressed staff on the budget's key risks: declining enrollment, which reduces state funding, and the possibility of state 'settle up' actions that would defer or withhold funds. Champion outlined the law's protections, including funding computed on the higher of current ADA, prior year or a three‑year average, and said those protections give the district time to respond if enrollment falls faster than expected.
The board voted to open the required public hearing on the budget during the meeting and later scheduled formal adoption at the next board meeting. The packet indicates the district will return in July for the 45‑day revision if state trailer bills or final enactment of the state budget require adjustments.
Ending note: the district will review staffing and final enrollment counts before adopting the budget; the board will consider a formal adoption at its next regular meeting.
