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Board reviews governor’s proposed state budget and risks to local revenues
Summary
Staff summarized the governor’s January budget proposal and LAO cautions, noting a projected 2.41% COLA, possible one-time funds and a proposed Prop 98 'settlement' of about $5.6 billion that could affect schools; staff recommended monitoring the May Revise and trailer bills for details.
Anita presented the January proposed state budget and a summary of risks and opportunities for the 2026–27 school year.
Staff highlighted a projected COLA of 2.41% and potential targeted increases (special-education equalization, ELOP rate increases, and discretionary one-time funds). She warned the Legislative Analyst’s Office found the governor’s proposals optimistic on revenue assumptions and that the governor proposed a roughly $5.6 billion Prop 98 settlement (holding back currently available funds) rather than a maintenance-factor repayment. Anita noted timing for the May Revise (anticipated mid-May) and final budget by June 30.
Board discussion focused on the uncertainty in state revenue assumptions and the implications for local budgeting, including the district’s approach to the salary-schedule funding gap. Anita explained pension-rate trends (CalSTRS/CalPERS) and projected changes to special-education funding that could aid the district; she cautioned that statewide trailer bills could restrict how one-time funds may be used.
Staff will continue to monitor hearings and May Revise developments and report back as state budget details firm up.
