By Niki Cervantes
Staff Writer

June 11, 2015 -- A last-minute infusion of state funding is providing the Santa Monica Malibu Unified School District (SMMUSD) with enough revenue to erase a projected $7.4 million budget deficit – and even post a small surplus next school year, District officials said this week.

The 2015-2016 fiscal year budget – which will be presented to the School Board Thursday -- totals nearly $102.6 million in general fund revenues, and $101.1 million in expenditures, according to the proposed budget.

It includes a surplus of slightly more than $1 million, a vast improvement over the more than $7 million in red ink the district was recently facing.

One reason for the district’s brighter budget outlook is that a big category of financing, the state’s Local Control Funding Formula, went up significantly.

The district’s proposed budget puts the number at about $15.9 million, up from $8.5 million in the current fiscal year. The LCFF gradually shifts more control of spending for schools to local educators.

Meanwhile, Proposition 98 funding climbed from the $65.7 million originally budgeted to $68.4 million. That proposition guarantees certain monies will be earmarked for schools throughout California each year.

Gail Pinsker, a spokesperson for the district, said the extra funding was included in Gov. Jerry Brown’s revised May budget. She cautioned, however, that the numbers are still changing.

“It is being re-checked and recalculated,” at this point, she said. For instance, the surplus, or fund balance, is likely to have grown by $400,000 when the school board discusses the budget at Thursday’s meeting.

“It’s a work in progress,” she said.

A public hearing is scheduled for June 24.

SMMUSD Superintendent Sandra Lyon was pleased with Gov. Brown’s budget for the upcoming fiscal year, which was greeted favorably by many educators throughout the state because it came up with extra money for school districts, community colleges and others.

“We are pleased that Governor Brown continues to fulfill his promise toward the importance of public education,” Lyon said. ‘While we plan to take a close look at our budgeting going forward, this revision allows us to continue to provide a rigorous academic program and  high quality visual and performing arts programs to the students we serve.

“We will continue to focus on student success and making sure each student reaches their full potential.”

Pinsker said the district is projecting a deficit for the 2016-17 school year, but added that the figure also is likely to change.

“We will be establishing a Superintendent’s Budget Committee to begin immediately reviewing our budget,” she said.

As is usual for school districts, employee salaries and benefits comprise the biggest single portion of expenses for the fiscal year beginning July 1, with increases in special education spending and other employee expenses driving up costs.

Between pensions, health insurance and workers compensation costs alone, spending is expected to jump $2.5 million.

Enrollment is due to dip slightly, from 11,295 students this year to 11,173 in 2015-16.