Moraga School District

BUDGET ADVISORY COMMITTEE MEETING

10.15.25

Moraga School District 2025-26

Inclusive Opening

Name, Place, and Intention

Moraga School District 2025-26

Budget Advisory Committee

Purpose

Purpose:�To provide input and recommendations to the Superintendent on budgetary priorities and strategies for the Moraga School District.

Goals:

• Promote fiscal responsibility.
• Increase transparency in budget decisions.
• Align budget priorities with the district's educational goals.
• Engage the community in the decision-making process.
• Make recommendations for budget cuts to close the structural deficit.

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Moraga School District 2025-26

Budget Advisory Committee

Norms

• Maintain Focus on Student Learning and Belonging
• Think big picture (bigger items).
• Stay open minded and think outside the box.
• Active participation (ask questions, give suggestions, brainstorm).
• Create space for all voices to be heard.
• Honor employee impact and experience.
• Try to be specific in sharing ideas.

Moraga School District 2025-26

• To develop norms and a shared understanding of District priorities for learning and belonging.
• To educate ourselves on the budget process in school districts and our fiscal responsibilities.
• To share updates since the last Budget Advisory Committee meeting.
• To generate questions regarding expenditures to support our work in the next meeting.

Outcome for Today:

Moraga School District 2025-26

What is most important for student learning?

The research says…

• Collaboration
• PLCs
• Professional Development
• Research-based Curriculum
• Intervention/MTSS
• Special Education

And the leadership to facilitate this.

Moraga School District 2025-26

What is most important for student belonging?

Build Positive Relationships - Osterman, K. F. (2000)

Create an Inclusive Classroom Environment - Cohen, G. L., & Garcia, J. (2008)

Affirm Student Identity - Rattan, A., Good, C., & Dweck, C. S. (2015)

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Set High Expectations with Support - Yeager, D. S., Walton, G. M., & Cohen, G. L. (2014)

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Encourage Student Voice and Choice - Deci, E. L., & Ryan, R. M. (2000)

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Foster Collaborative Learning - Johnson, D. W., & Johnson, R. T. (2009)

Address Belonging Uncertainty - Walton, G. M., & Cohen, G. L. (2011

Promote a Growth Mindset - Dweck, C. S. (2006)

Establish Consistent and Safe Spaces - Hamm, J. V., & Faircloth, B. S. (2005)

Engage Families and Communities - Epstein, J. L. (2001)

Provide Meaningful Extracurricular Opportunities - Fredricks, J. A., & Eccles, J. S. (2006)

The research says…

• Counselors/Wellness Centers
• SEL
• DEIB
• PBIS
• Parent Engagement
• Extracurriculars/Extension
• Professional Development

And the leadership to facilitate this.

Moraga School District 2025-26

Mission and Goals

Moraga School District 2025-26

Fund 12 Childcare

Fund 13 Cafeteria

Fund

Fund 17 Special Reserve

Fund 21 Building

Fund – Measure V

Fund 25 Capital Facilities - Developer Fees

Fund 40 Capital Projects Reserve

All Funds

Fund 01 General

Fund 35 School Facilities

Fund

Fund 08 Student Body

Fund

Fund 01 or the General Fund is the main fund for District business and is facing a deficit:

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Revenues < Expenses

Moraga School District 2025-26

RS. 3327

IDEA mental health

A note on Fund Accounting

Fund 01 General

Fund Accounting involves tracking resources based on specific purposes or restrictions

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Restrictions come from the state, especially with categorical grants, or the federal government

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Track resource revenues and expenditures within each fund

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Each Fund is separate from each

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RS.

6266

Educator Effectiveness

RS. 0190

MEF

Moraga School District 2025-26

Why are we here?

• The District is facing a structural deficit and a declining reserve in Fund 01

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• Post First Interim, the District can update the amount that needs to be cut from the 2026-27 budget

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• The Adopted Budget includes $720k in cuts

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• In the MYP, the 2026-27 year includes $556k in cuts – this was needed to pass the budget

Moraga School District 2025-26

Why are we deficit spending?

• School districts can slip into deficit spending; not unusual

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• It is fiscally dangerous to continue deficit spending when reserve levels are low

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• MSD needs to take a look at it’s expenses, some of which have been inflated over the COVID-19 years to move away from deficit spending

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• Years of high COLAs are behind us, however the expenses incurred in those high revenue years are still ongoing

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Moraga School District 2025-26

Multiple Year Projection – 2025-26 Budget

Moraga School District 2025-26

Cuts included in 2025-26 budget year

• Director of Administrative Services
• Literacy TOSA
• JM Writing Tutor
• TA Hours reduced for 3rd - 5th grades to 5 hours per teacher
• Reduced JM Instructional Council Hours
• Safety Committee Extra Hours
• Coordinating Council Extra Hours
• Panorama Survey
• Classified PD Day Extra Hours
• District Office Reorganization
• PD Supplies
• PD Extra Hours
• Ed Tech Platforms
• Summer Planning Hours
• Reduction in Elementary Yard Duty Hours
• Night Custodian
• Custodial Reorganization

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This is approximately $720,100 in cuts

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Previously communicated in the 2024-25 Second Interim and 2025-26 Adopted Budget presentations

Moraga School District 2025-26

Cuts included in the 2026-2027 year in the Multiple Year Projection

In order to meet our target and balance our budget, we will need to make additional cuts in 2026-2027.

These recommended cuts include:

• All TA Positions
• 2.0 FTE Elementary Counselors
• Co-Teaching Stipend

These categories are placeholders. The Committee needs to work on recommending final cuts for 2026-27.

This is approximately $556k in cuts for the 2026-27 budget year

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Previously communicated in the 2024-25 Second Interim presentation

Moraga School District 2025-26

STRUCTURAL DEFICIT – MYP – Prior Year

-$215k

-$741k

-$1.5M

-$1.9M

-$2.1M

-$2.2M

Moraga School District 2025-26

STRUCTURAL DEFICIT – MYP – Updated

-$215k

-$741k

-$236k

-$1.9M

-$1.2M

-$1.0M

-$728k

Moraga School District 2025-26

Increases in Special Education

• Special education requires a contribution from the General fund
• For the 2025-26 school year, the contribution is up by $1,032,394
• New students requiring placement – 4 at the time of budget
• Higher cost of Out of District and NPS contracts
• Placements at County school – Marchus
• Transportation costs for placements
• Higher total cost for aides
• Adding personnel to the special ed. program – Ed Specialist, EIP teacher, additions and higher cost for SLP personnel (partially offset by reduction in NPA costs)

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Moraga School District 2025-26

COLA decreases and CPI increases across the MYP

Moraga School District 2025-26

Depletion of One-Time Funds

Learning Recovery Emergency Block Grant – requires a needs assessment.

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Have until 2027-28 to use funds LREBG funds

Moraga School District 2025-26

Enrollment and Staffing assumptions

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• Enrollment trends are heavily reliant on the Demographic study conducted by SchoolWorks

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• Attendance based on historical data

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• LCFF funding based on ADA = Enrollment x Attendance rate

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• Moraga was not experiencing declining enrollment

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• 2025-26 enrollment has come in lower than expected

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• This is alarming given our declining reserve

Moraga School District 2025-26

Enrollment

• Lower than expected enrollment
• Budgeted for 1,809 students based on the 2024-25 Demographic Study; as of 8/7/2025 enrollment is 1780
• Loss of 29 students
• Primarily due to TK enrollment coming in lower than expected by 24%
• As of 8/7/2025, TK enrollment is 33 students lower than expected
• LCFF dollars are a product of ADA and base grants, therefore enrollment is a big factor for this source of revenue
• We need to have more conservative enrollment projections

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• Enrollment can continue to go down or go up. Revised estimates will be presented at 1^st Interim

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Moraga School District 2025-26

LCFF Funding

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• Base grant for each student

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• Grade span adjustment money for TK-3

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• Supplemental funding for each student with higher needs (English learners, foster care or reduced lunch) 20% additional funding per student

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• The LCAP guides the use of LCFF funds

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• The LCFF revenue is the total bucket

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• Part of this bucket is funded with property taxes and the state funds the rest

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• For declining enrollment, LCFF does allow the use of prior year ADA

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• For the MYP, unless ADA increases, the district will be using a 3-year average, based on actuals

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Moraga School District 2025-26

ALL REVENUES

Only LCFF Revenue receives the COLA

Local includes the MEF grant, Parcel Taxes and local donations

Moraga School District 2025-26

Parcel Taxes

• In an effort to increase revenue, the District plans on going out for a additional parcel tax
• The prep work for a parcel tax is expensive and requires time commitment
• Consultant costs, survey costs, costs of going on the ballot, canvassing

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• The District will utilize a new one-time grant to pay for the prep work for this parcel tax
• Actual costs will be available once the process is complete – budgeted $180k

Moraga School District 2025-26

Parcel Tax Planning Timeline

• Voter Survey
• Election Timing
• Parcel Tax Amount
• Tax Rate
• Political �Landscape
• Tax Structure
• Potential Controversy

• Fundraising
• Direct Mail
• Lawn Signs
• Endorsements
• Texting
• Digital
• GOTV

• Non-Advocacy Communication
• Existing comms
• Informational mailers / digital
• Internal & external audiences
• Seek feedback
• Refine proposal

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• Ballot Resolution
• 75 words
• Accountability features
• Tax Rate
• Duration
• COLA

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March 6, 2026 is the deadline to qualify for the �June 2, 2026 Primary Election

Moraga School District 2025-26

One-Time Money

• Considered “One-Time” as there is no anticipation that it will be replenished
• Good for emergencies, unanticipated needs or other one-time expenditures, like staff development, technology purchases or payment of fines
• Not good for ongoing expenses, like salaries, benefits, technology subscriptions
• Charging ongoing expenses to one-time funds results in deficit spending and depletion of the reserve
• While one-time money is great to have, school districts need ongoing funding to run effectively

Moraga School District 2025-26

As Estimated by School Services

ONE-TIME DOLLARS

LREBG funds already used up by Panorama

Parcel Tax costs budgeted in new grant

MSD also has $10,775 for Literacy Screenings Professional Development grant, $8,900 is already spent in 25-26

Moraga School District 2025-26

Why are budget cuts imperative?

• Without cuts, the district will not be able to afford a raise in the MYP

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• The district needs to correct deficit spending to get back to safe reserve levels

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• The Budget report requires a Multiple Year Projection including the years 2027-28 and 2028-29

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• Without cuts, the third year, 2028-29, will have negative reserves

Moraga School District 2025-26

Why are budget cuts imperative?

Negative – It is projected that the district will not be able to meet its financial obligations in the current or next fiscal year

Qualified – It is projected that the district may not meet its financial obligations in one of the three years

Positive – District is projected to meet its financial obligations for all three years

The District needs to present a Positive Budget Report and afford raises

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Moraga School District 2025-26

Discussion and Questions

• Special education budget detail
• Break down of proposed cuts for 2026-2027 with $ amounts
• Intentions of the parcel tax
• Invite TeamCivX to the Budget Advisory Committee
• Recruit more teachers and classified staff
• More information about literacy tutors
• Future needs (math intervention, math adoption)
• Textbook costs, consumables - alternate revenue streams?
• Chromebooks - BYOD?
• Comparisons with other districts - total compensation

Moraga School District 2025-26

Next Steps

11/06/2025 Next Committee meeting

12/04/2025 Next Committee meeting

01/08/2026 Next Committee meeting

02/05/2026 Final Committee meeting

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Moraga School District 2025-26