School District budgets are presented at least four times each fiscal year. A projection of the current year plus two more, known as a Multi-Year Projection, is required at the Original, First Interim, and Second Interim Budgets. Preparing a multi-year budget takes about six weeks. A fifth budget report, the 45-Day Revise, may be presented in August. This is an opportunity for the district to revise revenues and expenditures resulting from the Budget Act.
An independent firm audits the district's data in the fall, with findings presented in January.
The baseline level of funding for California school districts is determined by Prop 98. California voters approved Proposition 98 in 1988. It guarantees the State will provide a minimum funding level to K-14, which includes grades TK through Community College. Funding is distributed to Local Education Agencies through the Local Control Funding Formula (LCFF).
ADA is the average number of students attending school and is used to calculate LCFF funding. ADA may also be used to calculate some Federal and other State funding sources. Due to student absences, ADA is always lower than total enrollment. Attendance is counted every day of the year, but the LCFF funding is based on attendance through the Second Principal Apportionment or P-2, which is from July 1 through the last school month ending before April 15.
Funded ADA is not synonymous with actual ADA. Funded ADA is calculated using the district’s average actual ADA over the three previous years, the prior year actual ADA or the current year actual ADA, whichever is highest. The three-year average includes artificially high proxy ADA for the 2021/2022 year.
Higher attendance rates have a positive impact on academic success and are critical to the financial health of the district. Each 1% of attendance change translates to about $1 million in ongoing LCFF revenue. In 2019/2020, Lompoc attendance rates were over 93%. During the following three years, attendance dropped to 89%. Last year, LUSD schools began an attendance campaign resulting in improved attendance. During the sixth school month of 2024/2025, LUSD attendance rates were 92%.
Under the Education Code (Section 42131) all California School Districts must be able to show that they have a sound financial plan in place that will assure fiscal solvency in the current year plus the next two years. This is accomplished by preparing a Multi-Year Projection report that shows projected revenues and expenditures for the current and each of the next two years. Organizations with credible experts in school finance, like the Fiscal Crisis and Management Assistance Team (FCMAT) and School Services of California (SSC), provide future assumptions to districts. The Lompoc Unified School District Multi-Year Projection reflects that the district will be able to meet its financial obligations.
Key Components