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HBCSD reviews LCAP update and 2026–27 LCFF budget projecting reserves despite deficit
Summary
The Hermosa Beach City School District presented its 2026–27 Local Control Funding Formula budget and the LCAP annual update, reporting $22.2M in projected revenue, $22.75M in planned expenditures, a roughly $1M year‑end deficit for 2025–26, and a healthy reserve near 22% under current assumptions.
The Hermosa Beach City School District presented its Local Control and Accountability Plan (LCAP) annual update and a proposed 2026–27 LCFF budget during the June 10 board meeting. Paula Montalvo said the district’s LCFF funding is $16,659,000 and total projected revenue for next year is $22,239,000, with planned expenditures of $22,752,000.
Montalvo told the board that 82% of the district’s budget is tied to salaries and that employer retirement contributions are substantial—STRS at 19.1% and PERS at 26.4%—which together constrain discretionary spending. She said the district is assuming enrollment of 1,455 and reported current average daily attendance near the mid‑90s, and cautioned that pending state actions (additional COLA proposals and other grants) are not yet included in the draft budget.
The LCAP presentation, led by the district’s LCAP presenter, described three strategic goals—Inclusion, Excellence and Community—and highlighted program changes including expanded ELA intervention, universal screening and stronger technology and cybersecurity supports. The district will refine the draft with the Los Angeles County Office of Education and return to the board for adoption on June 24. "We are staying steady at about a 22% reserve, which is very healthy for a district of our size," Montalvo said, while noting the district is planning for "approximately $1,000,000 deficit spending" to close 2025–26.
Board members thanked staff for the clarity of the presentation and for maintaining reserves while managing enrollment and program needs. The board took no final adoption action on the LCAP or the 2026–27 budget at the meeting; both items remain scheduled for future consideration.
