Why MBUSD's shrinking enrollment matters — the math behind the budget crisis

June 2026 · Last updated: June 11, 2026

Manhattan Beach Unified enrolled 6,521 students the year before the pandemic, per Easy Reader's reporting at the time; by 2024-25 enrollment stood at 5,895, per the Ed-Data district profile. Because California funds districts per student in attendance — and pays MBUSD $11,657 per student, against a state median of $14,421 — those roughly 600 missing students are a structural hole in the budget that just produced 58.85 authorized layoffs, per Easy Reader.

If you're an MBUSD parent — or a homeowner whose property value leans on these schools — here is how enrollment becomes money, and what the district is doing about it.

How far has enrollment fallen?

From 6,521 pre-pandemic, enrollment dropped about 8 percent to 6,031 during the 2020-21 school year, per Easy Reader — driven, district officials said then, by families relocating to schools offering in-person instruction. It never came back. The most recent published figure is 5,895 for 2024-25, per Ed-Data.

Why does each lost student cost so much?

California's Local Control Funding Formula pays a base grant per unit of average daily attendance, then layers supplemental money on top for English learners, foster youth, and low-income students. MBUSD has just 7.09 percent of students in those categories — the second lowest of any unified district in California — so it gets almost none of the supplemental money, per Easy Reader's March analysis. The result: $11,657 per student in total LCFF funding, $2,764 below the state median and nearly $5,000 below the highest-funded district in LA County. Fewer students multiplied by a low per-student rate is the whole story: enrollment is the district's revenue line.

How does that feed the deficit?

Between 2014-15 and 2024-25, MBUSD's LCFF revenue grew 44 percent — while its fixed costs grew 112 percent, per Easy Reader. Pension obligations alone rose $11.9 million; mandatory special education contributions roughly doubled to nearly $20 million. Without this year's cuts, the district's own Second Interim report projected the annual deficit growing from $3.12 million to $6.28 million in 2026-27 and $7.01 million the year after — exhausting reserves within two years. The warning lights are already on: the undesignated fund balance fell to $89,106 in a budget over $108 million, short-term cash-flow borrowing grew from $7.5 million in 2017-18 to $17 million this year, and S&P downgraded the district's credit rating from AA to AA- in February, per the same report.

What is the district doing about it?

Four things, per Easy Reader and its MBEF coverage:

Cutting. The board authorized 58.85 full-time-equivalent reductions for 2026-27 — 40.4 certificated, 15.45 classified, 3 management — nearly double last year's 31.

Leaning on local money. The Manhattan Beach Education Foundation granted $7,636,400 for 2026-27, the largest gift in its history, delivered early so some pink slips could be rescinded. The Measure MB parcel tax adds $2.5 million — though the same $225-per-parcel levy that funded 27 teachers in 2018 now funds 17.

Testing a new tax. A February poll found a $216-per-parcel tax drew only 48 percent support, far below the required two-thirds; the consultant suggested November 2026 at the earliest, possibly 2027, after families actually feel the cuts.

Working Sacramento. The district joined the Raise the Base coalition — now more than 215 underfunded districts — pushing to raise the LCFF base grant, the structural fix.

What happens next — and how do you weigh in?

The budget gets adopted this month: a public hearing and regular meeting Wednesday, June 17 at 5 p.m., and a special budget-adoption meeting Thursday, June 18 at 8 a.m., per MBUSD's board calendar. Incoming superintendent Dr. Kimberlie Linz — hired in part for her budget credentials — starts July 1; our profile of her is here. Agendas post on the district's board portal, with a live stream at vimeo.com/event/2280508.

We track this story, and everything else that hits your money in MB and Hermosa, in the twice-weekly Pier to Pier newsletter.

General information, not advice.

Sources

  • Easy Reader, "The fiscal cliff arrives: MBUSD sends out 58 pink slips," March 19, 2026 — https://easyreadernews.com/the-fiscal-cliff-arrives-mbusd-sends-out-58-pink-slips/
  • Easy Reader, "Manhattan Beach school enrollment down 8 percent due to pandemic," 2021 — https://easyreadernews.com/manhattan-beach-enrollment-down-8-percent-due-to-pandemic/
  • Ed-Data, District Profile: Manhattan Beach Unified (2024-25 enrollment) — https://www.ed-data.org/district/Los-Angeles/Manhattan-Beach-Unified
  • Easy Reader, "MBEF, after a $7.6 million grant to MBUSD, is not done yet," May 5, 2026 — https://easyreadernews.com/manhattan-beach-education-foundation-drive-mbusd/
  • MBUSD, Board Meeting Dates — https://www.mbusd.org/apps/pages/index.jsp?uREC_ID=137960&type=d&pREC_ID=504114

← Back to issues