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Elk Grove Unified staff warn proposed 2026–27 state budget could cut district LCFF by about $5 million
Summary
District finance staff told the board the governor’s 2026–27 proposed budget reduces the statutory COLA and relies on a ‘settle up’ approach that defers Proposition 98 funding; Elk Grove USD officials estimated roughly a $5 million LCFF shortfall under the proposal and flagged risks to multi‑year projections and bargaining.
Miss Watkins, the district finance presenter, told the Elk Grove Unified School District board that the governor’s 2026–27 proposed budget includes a 2.41% statutory COLA and relies on a ‘settle up’ mechanism that has deferred Proposition 98 funding in prior years.
“This budget proposes a 2.41% COLA for next fiscal year,” Miss Watkins said, adding that the change is roughly “a $5,000,000 decrease in LCFF funding for our district.” She also warned the board that the governor’s revenue forecast relies in part on ongoing AI-related tax collections and…
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