Spending cuts and revenue increases are painting a positive picture for finances at the Santa Monica-Malibu Unified School District (SMMUSD). During a meeting last week, the District received a positive certification on its 2023-24 budget 2nd Interim Report, meaning the district will be able to meet its financial obligations in the current and two subsequent fiscal years.
During the meeting, Assistant Superintendent of Business & Fiscal Services Melody Canady and Director of Fiscal Services Gerardo Cruz said the budget update showed the district’s financial position as of Jan. 31, and displayed changes between the first and second interim budget periods.
For the unrestricted general fund, total revenues were down by $261,828 from the first interim budget dated October 31, 2023, but total expenditures were down by $770,149, adding $508,321 to the fund balance. The revenue decrease was more of a transfer than a loss, as the $261,828 was a change in funding that puts more money into Special Education, which creates a decrease to revenue. Expenditure decreases were seen in classified hourly, overtime and substitute salaries, as well as statutory benefits and employee health benefits. Both of these categories were noted by Canady as not a decrease in employees, but rather decrease while “looking at what vacancies we actually have out there, and where folks are landing on those particular areas of statutory benefits.”
The district’s restricted general fund had a more significant balance increase from October to January, as revenues were up by $1.98 million while expenditures rose by $667,440, making for a balance jump of $1.31 million. The majority of the revenue expansion came from a $1.5 million boost in projected revenue from local Parent-Teacher Association, Booster Club and gift funding. The Jan. 31 date of the interim budget coincided with the conclusion of a fundraising campaign by the Santa Monica Education Foundation, with 32% of SMMUSD families contributing to the foundation by that date.
In a March 6 message to families, SMMUSD Superintendent Dr. Antonio Shelton called for further donations to the Education Foundation, saying that $600,000 will need to be raised by June 30 in order to avoid cuts to district programs. The foundation’s annual Wine Auction in April will bring in about $300,000, leaving the other $300,000 needed from other sources.
“I can’t stress enough that any amount is appreciated,” Shelton wrote to families. “$300,000 might feel too overwhelming an amount, but remember — if everyone can give something, we will get there. It all adds up … I’m confident that if we all choose to support the Ed Foundation with a gift that works for you, we will reach our goals, and nothing will have to be cut.”
Cruz gave an update on ending fund balances in the 2nd Interim period, stating that the district’s current two-month reserve for general fund expenditures is at $17.17 million, still under the recommended statewide average reserve for other Basic Aid Districts, that being $26.8 million.
The update also included a district multi-year projection that includes state revenue cost of living increases, local revenues, employee health and welfare increases, as well as factoring in student enrollment. As of October 4, 2023, student enrollment in the district was 8,634, a decrease of 201 students since the prior year. Canady stated that she was unsure of the future of some of these factors, including the enrollment.
“Nobody knows where that wheel is going to stop … I think we’re fortunate to be a Basic Aid district at this moment, because we’re not feeling those types of fluctuations that your State Aid districts are feeling, this doesn’t affect us as strongly … this might be the only time I say we’re fortunate to be basic aid,” Canady said.