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Lompoc Unified School District

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Budget

Financial Reports

 

2025-2026 Budget Summary
 

Budget Basics 

  • 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.

    • Original Budget: Must be adopted before the fiscal year starts on July 1.
    • First Interim: Presented in December, includes actual revenue and expenses through October 31.
    • Second Interim: Presented in March, includes actual revenue and expenses through January 31.
    • Unaudited Actuals: Presented in September after the fiscal year ends, providing the most accurate financial data based on actual expenses and revenues.
    • 45-Day Revise: May be presented in August to revise revenues and expenditures based on 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).

    • Prop 98 is calculated by comparing three main formulas or "tests.”
    • Test 1 applies in strong economic years and guarantees education funding will be at least 39% of the state’s General Fund Revenues
    • Test 2 applies when the economy is stable of growing moderately and maintains the prior year funding adjusted for growth and inflation
    • Test 3 applies during economic downturns and adjusts the prior year funding based on the change in per capita General Fund revenues plus an additional .5%

  • 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

    • Statutory COLA: The statutory COLA, or Cost of Living Adjustment, is applied to some, but not all funding sources.
    • Per/ADA Revenue: The per/ADA revenue is an average per student LCFF funding amount based on a tool provided by FCMAT. Students are funded at different rates due to grade level or classification within groups that receive additional funding.
    • Unduplicated Count: The unduplicated count is the number of students who are either English Learners, Low-Income, or Foster Youth.
    • Funded ADA: Funded ADA, estimated actual ADA, and total enrollment are critical to district revenues. The funded ADA is used to calculate the district's LCFF base grant and can be used to calculate some other State and Federal revenues.
    • Indirect Costs: Indirect costs are a percentage of the organization's indirect costs compared to its direct costs, an efficient way to recover a share of general management costs from individual programs.
    • Step and Column: Step and column are the contractual increases for LUSD staff. Those increase the district’s expenses by about $1 million each year.
    • Health and Welfare Costs: Health and welfare costs (including medical and dental contributions) have risen by about 5% compared to year 2023-24. Over the next two years, the District projects an increase of 7% each year.
    • STRS and PERS: STRS and PERS are employer contributions to the two employee retirement programs, the State Teachers’ Retirement System and the Public Employees’ Retirement System. STRS has leveled in recent years, but PERS continues to increase.
    • Statutory Benefits: Statutory benefits, excluding STRS and PERS, include State Unemployment Insurance, Workers' Compensation, and Social Security. The Certificated percent is lower primarily due to the absence of Social Security.
    • Routine Maintenance Contribution: The routine maintenance contribution must equal 3% of the district’s expenses (some expenses are excluded). It pays for the salaries, supplies, and equipment of our staff who maintain the schools and make routine repairs. RRMA is not designed nor adequate to fund school renovations.
    • Special Education Contribution: The difference between current expenses and revenues received for Special Education.
    • Transportation Contribution: The difference between current expenses and State transportation revenues received.