Board hears governor's 2026–27 budget overview; district cautioned about Prop. 98 settle-up and out‑year deficit
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Summary
Dr. Choi briefed the board on the governor's January 2026 proposed budget, noting an estimated $22 billion structural deficit in 2027–28 and continued Prop. 98 withholdings that could affect San Marino Unified; the district will return with interim financial reports in March and May.
The San Marino Unified School District Board of Education on Jan. 27 heard an informational briefing on the governor's proposed 2026–27 state budget and its implications for local schools.
Dr. Steven Choi, the district’s chief business officer, described the governor's January proposal as "largely positive" in headlines but warned of important risks in underlying assumptions. Choi said the state projects a growing structural deficit and cited a projection of about $22,000,000,000 in 2027–28. He also highlighted a recurring policy concern for school districts: "Prop 98 settle up" with prior-year withholdings. Choi said that the governor’s proposal again includes a settle-up that the district estimates at approximately $5,600,000,000 statewide.
Choi reviewed key budget features that would affect districts: a proposed cost-of-living adjustment (COLA) estimated at 2.41 percent for 2026–27, continued support for universal TK and meals, funding for expanded learning opportunities and a proposed restoration of a prior learning-recovery block grant. He said that if the Prop. 98 minimum guarantee were fully funded, districts would receive roughly $909 more per ADA and that for San Marino Unified that would represent about $2.8 million in additional funding.
Board members asked whether restored or expanded program funds would cover existing district costs. Choi and superintendent Dr. De La Torre cautioned that the governor’s proposal is the January version and that details often change before the May revise and final budget. Choi said the district relies heavily on local revenue sources — parcel taxes, the San Marino Schools Foundation and PTAs — in addition to LCFF and will monitor state developments closely.
Choi said he will return to the board in March with the district’s second interim financial report and again in May to present the governor’s May revise before the board adopts the 2026–27 budget in June. The presentation was informational; no board action on the state budget was required at the meeting.
