Birmingham board holds preliminary budget hearing as state revenue outlook softens
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Summary
School leaders presented a preliminary 2025–26 budget projection showing roughly $65.6 million in expected revenue, projected reserve declines and risk from reduced state personal income tax receipts and waning one‑time federal funds; board heard enrollment and attendance assumptions but did not adopt a final budget at the hearing.
Birmingham Community Charter High District officials presented a preliminary budget and fiscal assumptions for 2025–26 during a public hearing, citing $65.6 million in projected revenue, planned staffing adjustments and a projected drawdown of reserves if current assumptions hold.
The administration told the board the district is projecting 3,125 students and used a 94% average daily attendance assumption in calculating Local Control Funding Formula revenue; staff said each one‑percentage‑point change in attendance would alter the budget by about $550,000. They also reported roughly $1.9 million of reductions in supplies and services and said long‑running one‑time federal COVID era funds are declining, reducing offsetting revenue.
The administration summarized statewide budget risks the board should consider: a downgrade in California personal income tax forecasts, decreased state revenues tied to capital gains and personal income, and federal policy uncertainty. Staff cited the governor’s May revisions, a projected state revenue shortfall and a possible short‑term cash deferral that could affect local cash flow. The presentation noted the district will draw down about $3.4 million of reserves in the coming year under current assumptions.
Board members and staff discussed enrollment trends and how they feed the budget. Administrators reported a current enrollment count of about 3,071 and pre‑enrollment for next year of about 3,236, and said the district typically “backs fill” vacancies through the school year rather than admit large cohorts mid‑semester. The fiscal presentation said about 80% of revenue comes through LCFF, with supplemental and concentration grants adding roughly $14.3 million to the base.
The superintendent and finance staff reviewed expenditure pressures: higher employer pension contributions, projected increases in utilities and maintenance, and reductions in outside contractor spending as some services are brought in‑house. Staff also described the district’s approach to manage the structural gap, including hiring prioritization, limiting new permanent positions, and continued pursuit of grants.
The board held the required public hearing for the preliminary budget; formal adoption was not on the agenda at that time and will occur at a future meeting after the Legislature finalizes the state budget.