District presents 2025–26 budget projections: $55M revenue, $60M expenditures and reserve pressure

Staff member opened the budget portion of the meeting as the public hearing on the 2025–26 budget and summarized revenue and expenditure projections, staffing assumptions and next steps in the adoption timeline.

The budget overview is especially significant because it frames how the district funds LCAP actions and day‑to‑day operations. Staff said the district’s total projected revenue for 2025–26 is about $55,000,000 and projected total expenditures are about $60,000,000, noting that carryover and reserves are budgeted to cover the difference in the adopted budget.

Staff said roughly $37,000,000 of the expenditures are included in the LCAP pool, with approximately $7,000,000–$7.4 million budgeted specifically for high‑needs students (foster youth, English learners and low‑income students); staff reported actual spending for that category at about $7,900,000 in the most recent year, in part because of salary increases that were embedded in LCAP‑funded positions. "Total revenue for the 25/26 full year ... $55,000,000 overall," the staff member said while describing the summary page.

Key fiscal assumptions staff cited included a 2.3 percent cost‑of‑living adjustment (COLA) for 2025–26, STRS at 19.10 percent, a slight projected decrease in PERS of 0.24 percentage points, and an enrollment projection of 3,452 students. Staff identified the district’s unduplicated pupil percentage at about 63.28 percent and estimated LCFF revenue near $42,000,000. Salaries and benefits were projected at roughly $49,000,000 — approximately 83 percent of total expenditures.

Staff warned of uncertainty around federal Title funding and noted the district receives roughly $800,000 in combined Title funds; about $326,000 across specific Title grants (Title II/III/IV and migrant funds) could be affected depending on state/federal budget actions. One board member noted classified staff are paid with federal funds and asked whether the district had a plan for reductions; staff said no formal contingency plan is in place and that further decisions would be required if federal funds are reduced.

Multiyear projections shown to the board estimated an unrestricted reserve near 11.14 percent for 2025–26, falling to about 9.8 percent for 2026–27 and roughly 9 percent by 2027–28 after planned reductions; staff said the district is planning targeted reductions (vacancies, reassignments and not filling some positions) to maintain a roughly 9 percent reserve in later years. Staff described potential mid‑year adjustments (a 45‑day revision) if state budget changes are large, and a standard review process with School Services and the county office in July–September.

Staff also noted that some federal funds that had been on hold for an outdoor education program were received in June and are now in the account, enabling planned field trips and environmental program activities.

No formal vote on the budget occurred at the hearing; staff said the district will present the budget for adoption at the regular board meeting and will continue to update projections as state and federal budget details become final.

"We do receive federal funds ... about 800,000," the staff member said when explaining the district’s federal program exposure. Board members asked clarifying questions about staffing assumptions, TK enrollment trends and identification of potential English learners in early years.

Staff described next steps: present the budget for adoption at the next board meeting, submit final materials to the county office for review, close books for the prior year in July–August, and present unaudited actuals in September.