Laguna Beach USD presents 2026–27 budget; CBO says district remains fiscally solvent while proposing temporary RRMA reduction

Manoj, the district’s chief business officer, presented the Laguna Beach Unified School District’s proposed 2026–27 budget at a May 12 study session and told the board the district remains fiscally sound despite some one‑time uses and rising costs.

Headline figures presented by the business office include estimated 2025–26 revenue of about $94.5 million and a proposed 2026–27 revenue estimate near $94.0 million. The district’s LCFF (Local Control Funding Formula) entitlement was cited at about $27 million; property‑tax receipts were reported at roughly $76 million, meaning Laguna Beach is a community‑funded district that retains property‑tax excess over LCFF entitlements.

To preserve ongoing reserves while accommodating one‑time projects, the CBO proposed temporarily reducing the routine restricted maintenance account (RRMA) from $3.6 million (4% of the general fund) to $2.7 million (3%) for one year, with a stated commitment to restore the funding if additional revenues materialize. "I as a CBO am proposing that we temporarily reduce the routine restricted maintenance from 3,600,000 to 2,700,000," the CBO told trustees. He framed the measure as a timing/one‑year solution to protect the district’s fiscal cushion.

The presentation also described LCAP alignment (LCAP funding shown at about $84.6 million), and listed new positions proposed through the LCAP, including an arts coordinator, BCBA coverage, and bus monitors. Trustee Kelly pressed for clarity on a reported $200,000 arts coordinator position; the CBO confirmed the role as budgeted in the proposed LCAP.

Manoj repeatedly emphasized the district’s overall solvency: "I cannot emphasize that we don't have a budget crisis. We are fiscally solvent and sound," he said. Trustees asked detailed questions about property‑tax projection methods (the district uses a third‑party vendor, HDL / Cohen & Co.) and timing for recognizing one‑time state grants; the CBO said the district recognizes one‑time state revenue only when amounts are certain and follows gasb/modifed‑accrual recognition rules.

Next steps: LCAP and budget hearings are scheduled May 14; the board must adopt the budget by June 30 but may amend it afterward if conditions change.