Hermosa Beach City School District trustees on Dec. 10 adopted the district’s 2025–26 first interim budget and approved a resolution to notify the Schools Excess Liability Fund (SELF) that the district will begin reviewing alternative excess-liability insurance options.

Finance director Miss Montalvo told the board the interim report (covering July 1–Oct. 31, 2025) shows the district has a strong reserve. She noted two major uncertainties: the governor’s budget expected in January, which determines state funding, and a still-unresolved federal budget. "These assumptions were good on the day, Oct. 31," she said, adding that enrollment stood at 1,443 and projected average daily attendance at 1,372.

Trustees discussed why expenditures were reduced in the projection and how the district is addressing a structural deficit through tighter spending. The presenter said about 80% of district revenue is spent on salaries and benefits and that "other outgo" (about 15% on a chart) covers equipment, capital and some special-education costs.

In a separate action prompted by rising excess-liability premiums after Assembly Bill 218, Superintendent Dr. Susan Wilds explained the district would give formal notice to SELF so it can "shop the market" for potentially lower or better coverage. "Doesn't mean we're leaving SELF. We're just giving them notice that we will be shopping around," Dr. Wilds said.

On the consent calendar the board removed and then separately approved item 11.3 (purchase orders/warrant report) after identifying a conflict of interest; the roll-call vote on 11.3 recorded Board member Van Landingham as abstaining, and the remaining trustees voted to approve the item.

Other actions approved during the meeting included the annual organizational business (selection of officers), an authorized-signature resolution required by the Los Angeles County Office of Education, posting of first-interim revisions and a motion to waive board-member compensation (per California Education Code 35120) unless members opt to receive it.

The board approved a resolution that starts the process of reviewing excess-liability insurance options with the goal of finding more favorable terms given recent premium increases and large settlements impacting school districts.

Board members said they will continue to monitor state and federal budget developments and special-education cost trends, which staff identified as an area that requires ongoing attention.