Brea Olinda board approves 'positive' second‑interim as business office warns of state funding shortfall

The Brea Olinda Unified School District board voted unanimously to approve the district’s 2023–24 second interim budget and to self‑certify a “positive” multiyear financial outlook after a detailed presentation by Rick Champion, assistant superintendent for business services.

Champion told the board that recent state revenue reports have produced a substantially worse picture than when earlier budgets were set. “The state is in a deficit,” he said, summarizing findings from the Legislative Analyst’s Office and the Department of Finance. He warned the district is already planning for reduced revenue and has identified steps including holding vacant positions and prioritizing core programs.

Why it matters: California districts must submit interim reports and certify whether they can meet financial obligations for the current year and the next two years. A “positive” certification signals the district currently expects to meet obligations but still must respond to new revenue uncertainty that could require cuts or further revisions.

Champion outlined several concrete figures and consequences discussed with the board: the district incorporated a near‑term revenue reduction on the order of about $2 million across the current budget window and an additional projected gap in the following year (he cited a $2.7 million impact in an out year scenario). He also showed a decline in the district’s projected ending fund balance in the multi‑year preview—restricted and unrestricted funds combined—down from prior high‑level projections (presentation slides compared earlier and updated bars showing a material decrease). Champion recommended the board adopt the positive certification while continuing to monitor May revision numbers from the state and to use reserves and hiring controls to manage the shortfall.

District context: Superintendent Brenda reiterated the district’s larger point about funding inequity, saying the district receives roughly 86% of the statewide LCFF average. Champion flagged several statewide proposals that could further affect local revenue, including adjustments to Proposition 98 calculations and potential reductions to targeted programs and one‑time grants. He also described newly available recurring revenue streams — such as Prop 28 arts funding (district‑wide projection of about $746,000 for the year, formula‑driven by site enrollment) — but cautioned that those dollars carry compliance and audit requirements.

What the board did: After the presentation the board moved and seconded the recommendation to adopt the second interim report and to certify positive for the required multi‑year window; the motion passed on a 5‑0 roll call vote.

What comes next: District staff said they will continue to refine revenue and expenditure estimates as the state releases May revision figures, develop contingency plans for staffing and one‑time spending, and report back to the board. Champion encouraged community advocacy and offered contact information for anyone who wanted deeper budget detail.