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Capital Advisors brief: governor’s budget could leave districts short despite large three‑year package, Palmdale officials say

Palmdale School District Board of Trustees · February 4, 2026
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Summary

A Capital Advisors presenter told the Palmdale board the governor’s January budget shows large three‑year education increases but that much of the money is reserved, leaving limited ongoing local discretion; the district’s dashboard shows steady academic growth but continued challenges with engagement metrics.

At the Feb. 4 Palmdale School District board meeting, a Capital Advisors presenter summarized the governor’s January budget proposal and flagged items that would not flow to local districts as discretionary ongoing revenue.

Kevin of Capital Advisors told trustees that while state projections show roughly $21.7 billion in additional education resources over three years, about $8.3 billion would effectively disappear from local district control because of Prop 98 rainy day deposits, accounting adjustments and debt/deferral fixes. He said the governor’s ongoing cost‑of‑living adjustment (COLA) estimate is 2.41% (roughly $2.4 billion) and described an ongoing debate about whether one‑time community schools funding should be converted to permanent funding or used to raise the COLA.

Kevin also warned of a proposed $5.6 billion “holdback” the administration built into the minimum guarantee, a maneuver he said would be contested by labor and school leaders. “If we defeat that, the $500 per kid block grant could become $1,500 per kid,” he said, urging board engagement in correspondence to the legislature.

District assessment leaders followed with an update on the California School Dashboard for 2024‑25. Director Josh Harris reported districtwide growth in ELA and math since 2022 and noted that Palmdale has no red dials in district‑level academic accountability metrics for the first time since 2017. He said ELA meet/exceed was just over 30% and that multiple student groups showed improvement; chronic absenteeism and suspension metrics still need work, though the number of student groups in the chronic absenteeism red band was cut in half from the prior year.

Trustees asked clarifying questions about attendance funding (ADA vs. enrollment) and federal funding prospects; Kevin and district staff responded that Congress’s recent appropriations action preserved most federal education program levels and that state budget debates will continue through the May revision and June adoption cycle.

The presentation concluded with an invitation for trustees to join statewide advocacy opposing the proposed holdback and to monitor May revision developments.