District recognizes $6.6 million in new state funds; quarterly investment report notes $149 million Measure JJ deposit

San Marcos Unified's governing board approved a 45-day budget update on Aug. 14 that recognizes approximately $6.6 million in additional revenue resulting from the recently enacted state budget and received its quarterly investment report for the period ending June 30, 2025.

District staff told the board that about $1.4 million of the additional funds are ongoing Local Control Funding Formula (LCFF) add-ons for transitional kindergarten; the district will use those funds to reduce TK adult-to-student ratios to 10-to-1 and has added TK teachers and aides to implement the change. The staff presentation stated the TK ratio change is ongoing and will be reflected in future budgets.

The update also recognizes approximately $5.66 million in a one-time Student Support and Professional Development Discretionary Block Grant. Staff said the block grant is restricted one-time funding and that the district will develop plans for how to allocate the funds. The district also reported about $800,000 in additional funding related to a learning recovery emergency block grant restoration.

Staff noted an offsetting reduction of roughly $1.2 million in ongoing Expanded Learning Opportunities Program (ELOP/ELAP) funding tied to revised state Tier allocations; the district's unduplicated pupil percentage (about 40 percent) did not meet the expanded threshold, producing a lower ongoing ELAP allocation.

On investment reporting, Business Services said the district had about $380 million invested at quarter end, including $149 million in Measure JJ bond proceeds deposited on June 18 following the district's first series sale of bond proceeds. The county pooled funds earned an annualized 3.7% during the quarter, and the county treasurer reported sufficient funds to meet obligations for the next six months.

The board approved the 45-day budget update by voice vote.