The behind-the-scenes workings of Laguna Blanca often go unnoticed by students. Individuals like CFO Jeff Seaton play a vital role in the school’s success. Seaton has been part of the team for just over four years, and his responsibilities extend far beyond merely managing the school’s finances. In our interview with Seaton, he shared insights into where the majority of the school’s expenditures are allocated, the approval process for construction and development projects, and the efforts the financial committee is making to double the endowment since his tenure began.
“In any given year, you can expect to receive about 85 to 90% of your total revenue from tuition. The remainder comes from philanthropy and ancillary revenue, which totals around $1 to $2 million,” Seaton said.
Although Laguna was founded more than 90 years ago, it is still considered a newer school compared to other independent institutions nationwide. For instance, Phillips Exeter Academy on the East Coast has been operating since the late 1700s. The key distinction between the two is that Exeter can rely heavily on its endowment’s yearly income, while Laguna’s endowment contributes only a small portion of its revenue. This is why building an endowment is so important for an independent school. Each year, the Laguna Blanca Finance Committee of the Board of Trustees, which includes Jeff Seaton and Head of School Ron Cino, meets to develop the budget, taking into account all expenses.
“If you were to look at the number of accounts we spend money on, it’s nearly 300,” Seaton said. “If you threw a dart at a wall with all 300 accounts listed, you would likely hit a person or their benefits 70% of the time.”
Salaries, benefits, and taxes consume the majority of the budget, leaving little flexibility once fixed costs, like insurance and utilities, are factored in. In recent years, these expenses have risen sharply. “Utilities have really skyrocketed,” Seaton remarked, gesturing upward. “And I cannot choose not to pay, since if you don’t pay Edison, they’ll turn the power off!” The burden of insurance is also increasing, particularly due to Santa Barbara’s susceptibility to wildfires, mudslides, and heavy storms. However, finances are just one aspect of the challenges at Laguna. Long-term projects, such as expanding enrollment under the conditional use permit, also face significant obstacles.
“Expanding enrollment or even adjusting the budget cycle is not a quick process; it takes a considerable amount of time,” said Seaton. “It usually involves six to seven months of back-and-forth discussions with the trustees.”
The facilities approval process is complex, involving urban planning, the county planning board, the Board of Supervisors, the Fire Marshal, the Regional Water Authority, and many more. According to Seaton, it’s quite daunting. He mentioned that it typically takes 18-24 months from the initial concept to the start of construction.n This process of navigating permits and approvals occurs while the school operates on a daily basis. Additionally, decisions regarding new developments are made keeping forecasts and yearly budgets in mind.
“You first plan for the near future, then make less certain forecasts for three and ten years down the line,” Seaton said.
Understanding this timeline provides context for the challenges involved in approving new developments for the school. The approval process itself takes six to seven months, and Seaton must also forecast several years ahead to determine whether sufficient funds are available for such projects before development can commence. Seaton’s contributions to the school are nothing short of essential.
“It is the engine of the school,” he said.
It is crucial for our community to recognize that without Seaton’s tireless efforts to navigate the complexities surrounding improvements, we would not enjoy the many benefits we currently have as students and members of the school community.