District staff presented the governor’s May revision to the state budget and told the board that lower revenue forecasts and a dip in attendance will reduce district funding.

The presenter said the state’s May revision projects lower revenues — the governor’s office estimated $4.8 billion less in cash receipts over the budget window and an overall state shortfall the presentation described as about $12 billion. The district noted the governor proposed reducing the Prop 98 minimum guarantee by about $1.3 billion and trimming the cost‑of‑living adjustment (COLA) from a January projection of about 2.43% to 2.3% for 2025‑26; the speaker said that COLA change equates to roughly $120,000 in district revenue.

The presentation listed several items that could affect next year’s budget. Universal transitional kindergarten funding was noted at $5,545 per pupil, producing a projected $580,000 for the district if enacted as proposed. The governor’s one‑time student support/professional development discretionary block grant was estimated at roughly $2.1 million to the district on a per‑pupil basis; a partial restoration to earlier learning recovery funding was estimated at about $250,000. District staff cautioned these one‑time amounts were not yet final and would be confirmed after the state budget is adopted in June.

Attendance and ADA: district staff reported actual average daily attendance (ADA) will be a fraction below the 94.5% target used in planning. Because cumulative ADA is calculated in April, the district said its ADA will be about 0.9 percentage points lower than budgeted, which the presenter said is expected to reduce LCFF funding for the fiscal year by about $764,000 and negatively affect the ending fund balance.

Timeline and next steps: staff said the state budget must be adopted by mid‑June and the district will present a preliminary 2025‑26 budget at a June 3 public hearing and seek adoption on June 17. The presenter told trustees the district will wait for the Legislature’s final action in mid‑June before finalizing the adopted budget and will return with any material changes.

No formal board action was taken during the update; trustees asked staff to track the final state decisions, monitor ADA, and report back with updated financial estimates when the state budget is finalized.