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Poway Unified staff say lower COLA will trim roughly $500,000 from next year’s revenue
Summary
District staff told the Poway Unified School District board May 6 that the state-set COLA was set at 2.3%—lower than earlier estimates—reducing the district’s projected revenue by about $500,000 and contributing to a $2.5 million drop from earlier projections; staff directed departments to seek non-personnel cuts while protecting school site allocations.
Poway Unified School District staff told the board at a May 6 special meeting that the state-established cost-of-living adjustment (COLA) for K–12 funding was set at 2.3%, down from earlier estimates, and that applying that number to the Local Control Funding Formula (LCFF) will reduce the district’s expected revenue for 2025–26 by roughly $500,000.
The district presenter said the revised COLA and related projections have reduced the district’s revenue picture by about $2.5 million compared with projections made earlier in the year. “The projected statutory COLA was lowered from 2.43% to 2.3% … when we apply that to the local control funding formula … it lowers our anticipated revenue next year by another approximately $500,000,” the staff member said.
Why it matters: the board was told the number-setting for COLA is distinct from whether the legislature or the governor will provide additional funding above the statutory COLA. A staff member said officials will watch the governor’s May revision, which is due next Wednesday, for any changes that could alter the district’s calculations. “Will the state fund the LCFF at the statutory COLA level? Will they choose to augment it above and beyond if there’s excess state revenue?” the staff member asked.
District context and immediate actions: staff reported that the governor’s January proposal included a discretionary block grant but that the district has not designed uses for such a grant because the proposal remains in the legislative process. Staff also warned of conversations in Sacramento about Medicaid/Medicare cuts on the non-education side of the budget and noted the state could suspend Proposition 98 in a budget crisis, which would affect the minimum guarantee for K–12 funding.
To manage uncertainty, district leaders have instructed district-level department heads to identify non-personnel budget reductions and given them targets to meet. The presenter said site allocations derived from the LCFF formula will be protected and not reduced; reductions are being sought at the district department level, and the district may enter negative placeholders in departmental budgets if targets are not met. Department leaders were given until the day after the meeting to submit reduction ideas.
Board discussion: Mr. Dill, a board member, summarized the distinction for the public, saying the COLA involves “two separate actions” — first establishing the percentage and second whether that amount is actually funded by the state — and said he was aligning his understanding with staff’s explanation. Clerk Kirk Plotsky reported there was no reportable action from closed session earlier in the evening.
Next steps: staff said they will review the governor’s May revision when it is released and summarize its impact on Poway Unified at the next regular board meeting; no formal budget actions or votes were recorded at the special meeting.
