The school board voted to approve the 2017-18 first interim financial report at its Thursday meeting.

The contents of the report were presented and summarized by Chief Business Official Tim Rahill. He noted that the general fund was budgeted at $50.5 million, 86 percent of which comes from the state’s Local Control Funding Formula (LCFF), 6 percent of which comes from the state’s other funding sources including a one-time grant, 2 percent— mainly special education funds and smaller programs— from the federal government, and 5 percent from local and other funds such as donations and the Benicia Education Foundation.

Rahill also noted that $5.5 million came from solar fund proceeds, but they would not be included in the second interim financial report. He also broke down the LCFF funds, 63 percent of which were derived from the state budget and 37 percent from property taxes.

Also in the presentation were expenses budgeted by Benicia Unified School District. According to Rahill, 49 percent of these consisted of salaries for certificated employees, 16 percent salaries for classified employees, 20 percent for employee benefits, 11 percent for services and capital outlay and 4 percent for supplies. All this added to $52.3 million in expenses and a $1.8 million operating deficit. In the reserves are $5.4 million— $1.6 million of which comes from California’s recommended 3 percent Reserve for Economic Uncertainties, $1.8 million from the local Board Policy Reserve and $1.9 million from restricted programs.

Rahill also identified key fiscal factors that are considered essential in operating the district. These included known salary-related costs such as employee retirements and the impact of the 2016-17 Benicia Teachers Association raise, other known revenue and expenses such as supplemental and special education services, LCFF factors such as student enrollment and average daily attendance, and the projected state LCFF gross as well as reduced funding for declining average daily attendance.

The board voted 3-1 to approve the report. Trustee Gary Wing left early, and Trustee Peter Morgan voted against it because he felt the board should be working to solve the issues laid out in the report.

“It’s never prudent— whether it’s your family budget, your company or governmental agency— to spend today what you might get tomorrow,” he said. “We should be balancing the budget, trying to maintain some of the reasonable reserves.”

“If we’re surprised by it being better, then we’re pleasantly surprised we can spend the money,” he added. “The path we’re on means it’s gonna be really, really painful if we don’t do something now. We keep voting for this darn budget, and I wish the board would just say, ‘Stop,’ pause, freeze or do something now rather than just kicking the can down the road year after year, going into negotiations and being disingenuous when there’s really no money to be spent and not addressing the issue that we have today.”

Trustee Stacy Holguin agreed the district should take a serious look at the budget and suggested having a board study session to talk about how to manage the budget.

“I understand we have to certify the interim report tonight, but I think it’s time to have serious discussions,” she said.

Morgan suggested starting a Budget Advisory Committee consisting of community members, district officers and teachers. During public comment, Lisa Delorefice— a fifth-grade teacher at Mary Farmar Elementary School— agreed with Morgan’s suggestion and would even volunteer to be on it.

“I have actually asked for numerous documents from the district just for that purpose: to help find places we can cut,” she said. “I haven’t received them yet, but I have asked for them because I also feel there are a lot of places I have had numerous suggestions on ways we can cut.”

The report will be filed with the Solano County Office of Education. After Gov. Jerry Brown provides his budget proposal in January, the district will report back to the school board with potential budget impacts and provide a second interim financial report in March.

In other matters, the board voted for Diane Ferrucci to succeed Wing as president and Holguin as clerk. Superintendent Dr. Charles Young also highlighted Benicia Middle School’s Robotics Club, which was presented by student Andy Hill and science teacher Nicci Nunes.

The board will next meet on Jan. 18.

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