Santa Clara Unified staff presented the district’s annual update to its Local Control and Accountability Plan (LCAP) and a budget overview to the Board of Trustees on May 22, describing local progress metrics and a multi‑year financial forecast that projects continued deficit spending unless actions are taken.

The LCAP update: Mark Stamm and district staff described three district-wide LCAP goals — academic achievement and closing gaps, student wellness and social-emotional health, and communication and partnerships — and reported year‑one progress on new local metrics created to measure those goals.

Highlights included a 12.7 percentage‑point increase in overall Advanced Placement course enrollment, outpacing the three‑year target; notable increases in unduplicated student participation in before‑ and after‑school programming (economically disadvantaged and Latino students showed 30.6 and 21 percentage‑point increases respectively); and progress on PBIS (positive behavior interventions and supports) fidelity, with more than half of elementary schools meeting fidelity and nearly half of secondary schools making progress toward fidelity.

The district also began using the Developmental Relationships Survey (DRS) to measure belonging and culturally responsive environments. Baselines show elementary students reporting higher sense of belonging (71/100) than middle (62/100) and high school (61/100) students; students with disabilities and economically disadvantaged students reported lower belonging, particularly in secondary grades. FAFSA (Free Application for Federal Student Aid) completion rates fell by almost 15 percentage points, a decline staff attributed in part to privacy concerns among families and website issues.

The budget presentation and fiscal outlook: Chief Business Officer (CBO) staff provided an overview of revenues and expenses and a five‑year projection. Key numbers presented by staff included projected total revenue of $409.3 million for 2025–26, with $352.6 million from the Local Control Funding Formula (LCFF), $34.6 million other state funds, $16.6 million local funds and $6.4 million federal funds.

Staff reported a one‑time deposit of $8.9 million to Fund 17 (district reserves) from a redevelopment‑agency parcel sale. The CBO warned the board that the district’s projected reserve position could fall to roughly 10.6% by 2029–30 under current assumptions and that ongoing deficit spending remains a risk. Projected general‑fund expenses were $457 million for 2025–26, with estimated actuals for the current year showing a deficit of $41.3 million.

The CBO emphasized that payroll and benefits drive most spending (salaries and benefits totaled roughly $400 million of the projected $457 million) and recommended early analysis to address structural imbalances. The forecast assumes a 5% annual property‑tax growth in out years for modeling purposes; staff noted county assessed‑value trends were weaker than recent years and reduced secured property‑tax growth assumptions from an initial 5% to 4.6% for the coming year.

Board response and next steps: Trustees thanked staff for the report and raised follow‑up questions about federal funding, local revenue breakdowns, and how specific programs are measured for impact. Several trustees said the forecast is a serious concern and asked for deeper expenditure reviews and right‑sizing options to limit the structural deficit. Staff said further analysis and more detailed operational reviews will continue through the summer and return to the board as part of the budget and LCAP adoption process (scheduled for a future meeting).

Ending note: The LCAP annual update remains a public document and is available for comment until June 6; the board will consider the LCAP for adoption at its June 12 meeting. The budget forecast and CBO warnings signal an early call for action to align spending with projected revenues if the district is to maintain long‑term fiscal health.