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El Rancho Unified reviews LCAP metrics and a 2026–27 budget that flags enrollment decline and reserve drawdown
Summary
Board heard a detailed LCAP update showing gains for English learners and higher graduation rates, but also gaps between budgeted and actual expenditures. Fiscal staff presented a 2026–27 budget that projects a multi-year decline in reserves tied to falling enrollment and recommended protecting unrestricted reserves.
El Rancho Unified School District trustees on June 23 received the district's annual LCAP update and a proposed 2026'27 budget that shows progress on several student outcomes but warns of long-term fiscal strain from declining enrollment.
District staff said the 2025'26 LCAP (year three of the plan) shows measurable gains on key indicators: the district's overall graduation rate rose to 94.7% from 93.5% and English learners'graduation jumped from 84.1% to 92.5%. Staff also reported improvements in parent engagement and perceived school safety, and noted chronic absenteeism declined for several high-need subgroups.
At the same time, presenters highlighted material gaps between budgeted and actual spending in several LCAP actions. The facilities line was cited as an example: staff reported an originally budgeted facilities amount of 7,460,424 and actual expenditures of 2,895,967, a difference of 4,564,457 that will be carried into the next year's planning.
"We continue to lose enrollment and attendance," CBO consultant Dr. Frutos told the board, flagging that lower enrollment reduces LCFF revenue and creates a structural pressure on the general fund. The district's proposed 2026'27 budget shows total revenue of roughly $132 million (LCFF about $104 million, including an SNC portion the presenters said is close to $26 million) against budgeted expenditures near $135 million for the year; under the multi-year projection, reserve balances are expected to fall from an anticipated ending fund balance of about $48 million down to roughly $18.5 million by 2028'29 if current trends continue.
Fiscal staff recommended a set of governance priorities: protect unrestricted reserves, use one-time and restricted funds prudently (preferentially for one-time needs), build a regular cash-flow management process, and manage contributions from the general fund to programs such as special education. "Those contributions should be managed," Dr. Frutos said, adding that any new discretionary state money should be used strategically to reduce structural spending pressure rather than to create ongoing costs.
Trustees asked for follow-up detail on several items: the district's plan for closing the gap between enrollment and attendance, the specific use and timing of tutoring funds at Ruben Salazar High School, and an itemized breakdown of the materials and services line that appears in the budget. The board also reached consensus to add the words "sustainable and resilient" to the LCAP's Goal 1 language describing facilities, a change made during the public hearing.
Next steps: staff said the finalized LCAP will return to the board for approval at the next regular meeting, and the budget will be submitted to the county after any final adjustments. The fiscal team said it will provide interim reports and cash-flow updates over the fall so trustees can track the impact of any state funding changes and early-year attendance performance.
