Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Budget topic
No spam. Unsubscribe anytime.
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 that revenue projections differ substantially from the Legislative Analyst’s Office outlook.
The presentation outlined several risks that could reduce the district’s share of state education funding, including volatility in capital gains receipts, federal policy changes affecting Medi‑Cal and stimulus receipts, and statewide declining enrollment that could lower developer fees used for school facilities. Watkins noted that the governor’s plan proposes more one‑time investments tied to the Proposition 98 guarantee and that trailer‑bill language is expected in February for several block grants.
Why it matters: Elk Grove Unified serves roughly 60,000–66,000 average daily attendance (ADA) students and uses LCFF and categorical grants to fund personnel and programs. Watkins said the proposed lower COLA and settle‑up approach would reduce the district’s anticipated funding and complicate multi‑year budgeting and local bargaining assumptions.
Board members pressed staff for specifics. Trustee Moore asked whether ‘settle up’ funds from prior years have actually arrived; Watkins replied the current proposal would repay a prior $1.9 billion deferment but would not include the COLA that would have accompanied those payments. Superintendent Riley said the May revision and the district’s interim reports will provide firmer figures for the board’s June adoption of the local budget.
What’s next: Staff said they will return with a detailed interim report and site‑level data in May and recommended the board avoid budgeting on speculative settle‑up dollars until they are appropriated by the state. The board did not take any action on the budget itself at the special meeting.
