OUSD presents midyear LCAP and budget update showing improved attendance and fiscal uncertainties ahead

Orange Unified staff presented the district’s midyear Local Control Accountability Plan (LCAP) update and a revised budget overview, telling the board about improvements in attendance and instructional metrics while cautioning that state revenue forecasts and a lower-than-expected COLA could tighten finances in coming years.

Key takeaways: The district reported progress across multiple LCAP indicators: English language arts improved to a green rating on the state dashboard, math showed increases though stayed at yellow, and chronic absenteeism decreased by an estimated 8.1 percentage points year-to-date in district tracking systems. The district also reported 928 CTE pathway completers and about 32 percent student participation in AP/IB offerings, with a 65 percent AP pass rate (3 or higher) cited for recent results.

Budget and revenue: Finance staff described a revised expenditure outlook that includes $32 million of carryovers (revising the adopted budget from roughly $372 million to about $404 million) and emphasized the statewide fiscal environment. Staff explained the governor’s budget projections for the year and the risk that state revenues could be lower than previously assumed; district leaders noted the district will track changes through the May revision and the P2 filing cycles. Staff also said that improved attendance will yield incremental state funding — roughly $3 million per 1 percentage point of ADA — and that early P1/P2 data suggest a positive incremental increase of about $3.4 million once averaging rules apply.

Why it matters: Attendance (ADA) directly affects LCFF revenue and the district highlighted the financial leverage of improving daily attendance. Staff said the district still faces revenue uncertainty in the coming fiscal years tied to state-level projections and recommended continued monitoring.

Board follow-up: Trustees asked for comparative AP/IB participation data, more detail on the allocation of carryovers, and the geographic distribution of preschool expansions. Staff said they would provide supplemental details and continue developing the next LCAP cycle.

Next steps: The district will continue LCAP engagement with advisory committees, finalize P2 enrollment/ADA reporting in April, and update the board and community on budget and LCFF changes through May and adoption cycles.