By Lookout Staff

September 21, 2026 – Financial statements presented to the School Board this month show the Santa Monica-Malibu Unified School District ended the 2025-26 fiscal year with a balance of some $9.85 million more than projected.

The District received approximately $6.1 million more in revenue than projected, and expenses were approximately $3.6 million lower than projected, according to the unaudited actual financial statements presented to the Board at a special meeting September 9.

Unaudited actuals reflect the District’s final financial results for the fiscal year before they are independently reviewed by an external auditor., District officials said.

“Understanding the District’s financial health gives us a clearer picture of where we ended the fiscal year and helps guide informed decisions as we plan for the years ahead,” said Chief Financial Officer Gerardo Cruz said in a statement.

“While our year-end position is better than we projected in June, many of these funds are already designated to address future deficit spending and maintain appropriate reserves," Cruz said.

"We will continue to carefully manage our resources while protecting the programs, services and educational resources that support our students and families.”

Accounting for the greater than expected revenues was approximately $4 million in one-time state property tax backfill and additional funding allocated by the State Education Budget Committee for the January 2025 wildfires, officials said.

The District also benefited from some $1.3 million more in Measure R parcel tax revenue, $954,000 more in lease and rental revenue and $1.6 million more in interest, which was "partially offset by approximately $186,000 less in sales tax revenue from the City of Santa Monica."

Meanwhile expenses were lower than projected "largely because several budgeted costs came in below estimates or were not needed during the fiscal year.," District officials said.

"This included approximately $2.4 million in reduced consultant, legal and other operating costs, approximately $820,000 in lower spending on supplies, textbooks and technology, and a $700,000 transfer to deferred maintenance that was not needed in 2025-26 and is expected to be utilized in 2026-27."

The reductions were partially offset by approximately $344,000 in higher salary and benefit costs, officials said.

"Although the 2025-26 year-end results are stronger than projected, the ending fund balance does not represent funding available for new ongoing commitments," District officials said.

"The unrestricted General Fund balance includes approximately $7.3 million for the state-required reserve, funds assigned for projected deficit spending in future years and approximately $30.3 million toward a reserve of up to two months of operating expenses."

The financials for the fiscal year that ended June 30 were released one month after District officials announced the District would have an additional $11.23 million for the current school year after the State boosted funding under its enacted budget.

The District is also expecting to receive additional funding through the state’s Local Control Funding Formula, or LCFF, Equity Multiplier after the California Department of Education publishes the 2026-27 eligible-school list and per-pupil rate in February.