Santa Clara Unified first interim update: small net tax adjustment, continued multi-year deficits

Santa Clara Unified’s business office presented the district’s first interim budget update, telling trustees that current-year estimates remain challenging but not materially worse than the adopted forecast.

Mark Scheel, deputy superintendent/chief business official, said secured property-tax receipts were about $3.9 million higher than projected but that a negative roll correction tied to five redevelopment parcels in San Jose reduced the district’s property-tax revenue by roughly $4.6 million, yielding a roughly $544,000 net decrease compared with prior estimates. Scheel said the district had no advance notice of the negative roll correction and is following up with county officials.

Scheel walked trustees through other portfolio changes: carryover federal and state grant funds (roughly $8 million in earmarked carryover for arts, classified summer assistance, and learning-recovery programs), an increase in legal and utility costs, and a small projected reduction in CalPERS employer contribution that provides limited mid-range relief. He said the district expects to use reserves across the multi-year period — roughly the tens of millions in cumulative drawdown previously reported unless additional reductions are finalized.

Board members asked for follow-up modeling that incorporates the district’s rightsizing steps (the administration said those reductions were not yet reflected in the interim numbers) and for scenarios showing how a $30 million reduction would affect reserves and services. Trustees voted 7–0 to approve the first interim report as required by state timelines.