The first interim budget for the Santa Monica-Malibu Unified School District (SMMUSD) was bolstered by surpluses seen at the end of the 2023-24 fiscal year.
At the SMMUSD Board of Education meeting on Dec. 12, Director of Fiscal Services Gerado Cruz and Assistant Superintendent of Business & Fiscal Services Melody Canady walked the board through the first interim report for 2024-25, covering changes between the adopted budget on July 1 and the interim budget as of October 31.
The major revenue change to the SMMUSD budget was roughly $20.43 million added from the 2023-24 ending fund balance, broken down into $12.64 million added revenues as well as unspent monies. Of the revenue, the top culprit for the boost was $7.72 million into Local Control Funding Formula (LCFF) via Redevelopment Agency Funds (RDA).
Cruz noted that the larger ending fund balance came from “events of a one-time nature,” such as the additional RDA monies and not spending on salaries and benefits in the general fund, as those costs were paid from the restricted general fund via one-time COVID-19 funding.
Along with the ending fund balance, the first interim report also added $4 million in RDA revenue, with Cruz stating that the revenue stream should be factored into budgets more regularly so there isn’t a “big swing” in future reports for the “volatile” revenue source.
Throughout the budget, Cruz added that it was “common” to see an increase in expenditures for certificated salaries and a decrease in expenditures for classified salaries. This was due to the district putting into place multi-phased salary schedule adjustments based on a contract made with SEIU Local 99. The agreement, made in May, included a 5% wage increase plus retroactive pay to January, a 3% wage increase effective July 1 of this year, and two-step adjustment wage increases of 5% during the 2024-25 and 2025-26 school years.
Operational costs in the general fund also saw a $813,000 increase in consultant resources, something Cruz said has been “directly impacting teaching and learning in the classroom” after past concerns about what consultants bring to the district. Of the $814,000 increase, nearly half went toward education services like PS Arts, K12 Insight and The Hanover.
“These dollars are being spent in the classroom with all of these programs, and the funds that are being used are at all the school sites … all of these pieces here are directly affecting teaching and learning,” Cruz said.
The district’s current reserves bumped up in the interim report, going up from 16.07% at the adopted budget to 16.76%, close to the state recommended 17% minimum level for unified districts. The interim report shows the district has a $25.02 million reserve for up to two months of general fund expenditures, also inching closer to the recommended amount of $26.8 million.
SMMUSD’s Board of Education will be moving into more administrative items in its final meeting of 2024, set for Thursday. The meeting will set an administrative appointment for Assistant Superintendent of Human Resources, as well as two short-term classroom teacher hires for John Adams Middle School. The board will also be commending Dr. Mark Kelly, who will be leaving his post as the district’s Deputy Superintendent.
