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Budget briefing: district could face state revenue uncertainty after Los Angeles fires, School Services warns
Summary
A School Services of California briefing flagged relative stability in the governor’s 2025–26 proposal but warned wildfire damage and revenue volatility could affect Proposition 98 funding; the governor proposes full TK funding, a COLA and one‑time grants with details pending trailer‑bill language.
School Services of California briefed the Torrance Unified School District board on the governor’s proposed 2025–26 state budget, highlighting areas that could affect local K–12 funding.
Michelle Underwood, vice president of School Services of California, told trustees the governor’s initial proposal keeps Proposition 98 funding largely intact but noted risks tied to the Los Angeles wildfires and potential revenue shortfalls. “We are not at 50% [of delayed revenues], we’re probably about halfway there,” she said, explaining that large revenue disruptions could trigger statutory recalculations of education guarantees.
Underwood summarized key items in the governor’s proposal: a 2.43% cost‑of‑living adjustment to LCFF, funding to fully implement transitional kindergarten, $1.5 billion proposed to reduce the student‑teacher ratio in early grades, expansions to expanded learning opportunities with changes that may not favor tier‑2 districts, several one‑time flexible grants, and targeted literacy and educator investments. She emphasized that trailer‑bill language is needed to define distribution methodology for one‑time dollars and that legislative deliberations will continue.
Board members asked whether disaster costs could force the state to draw on the rainy‑day fund or otherwise reduce the Proposition 98 guarantee. Underwood said the rainy‑day fund exists for such contingencies but noted a suspension of Proposition 98 would require a legislative supermajority; the education community will be watchful.
The presentation framed the governor’s release as the opening of a process that includes legislative hearings and revisions; district staff and school services will monitor developments and provide updates to the board as trailer‑bill language and the May‑revise process clarify funding details.
