District budgets for its reserve fund to shrink by more than half over three years

What happened

The 2026-27 budget the board adopted at its June 9, 2026 meeting (presented and publicly heard June 4) projects the district's general fund combined ending balance falling from about $2.21 million in 2026-27 to $1.48 million in 2027-28 and $836,000 in 2028-29 - a drop of roughly 62% over three years - while the state-required minimum reserve stays near $473,000 to $482,000. The same multi-year projection flags declining enrollment (projected average daily attendance falling from about 367 to 353 students over the period) as an ongoing fiscal indicator. The district's own budget narrative acknowledges the required 4% minimum reserve 'is not sufficient to cover the cost of the district's monthly payroll liability.'

Why it matters to families

MUSD still holds a positive budget certification and stays above the legal minimum reserve, so this is not an immediate crisis - but planning to draw the fund balance down by roughly $1.4 million over three years, driven partly by a shrinking student count, is the kind of structural trend that can force real cuts if it isn't reversed before reserves approach the legal floor.

The evidence

The Multi-Year Projection (Form MYPI) and General Fund summary pages in the June 4, 2026 LCAP & Budget Hearing agenda packet, and the associated fiscal-indicator worksheet flagging declining enrollment, published as backup materials to the June 9, 2026 budget-adoption meeting.

The source