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ABC Unified presents preliminary budget and LCAP; finance staff warns of multi‑year pressure and proposes $5.7M reductions
Summary
At the June 3 meeting district finance and academic leaders presented the 2025‑26 preliminary budget and the Local Control and Accountability Plan (LCAP). The CFO outlined enrollment declines and a projected structural deficit; the board was asked to adopt a reduction plan and directed staff to return with refined proposals.
District finance and academic leaders used the June 3 meeting to lay out the fiscal and program priorities for 2025‑26.
Chief financial staff said the district expects LCFF funding of about $230.5 million next year and noted continuing enrollment decline (projected average daily attendance near 17,129), a smaller COLA and non‑recurring state pressures. The CFO described a preliminary plan of roughly $5.7 million in internal reductions to limit a structural deficit the district is projecting in the coming year and asked the board to direct staff on next steps.
At the same time, district academic leaders presented the LCAP priorities for year two of the three‑year plan: targeted literacy and math supports at high‑need sites, expanded mental‑health professionals and site enrichment funds, continued expansion of CTE and early‑college pathways, and scaled inclusion work in special education. Dr. Castro cited local site examples (Willow Elementary literacy gains; Ross Middle School band expansion; Tracy High School graduation and EL progress improvements) as evidence that targeted investments can move outcomes.
The presentation also reviewed special‑education funding via the SULPA annual budget and service plan, which the district will submit to the county by June 30. Staff emphasized that special‑education services rely on a mixture of state/federal restricted dollars and local contributions, and that restricted funds are being drawn down over the next three years to support programs.
Board members asked detailed operational questions — including about chronic absenteeism, reclassification rates for English learners, TK expansion and projected health‑benefit cost increases — and sought follow‑up reports on student‑level outcomes and a clearer reconciliation of site investments and one‑time funding. Finance staff said the budget assumes no additional compensation settlements beyond current levels; any higher settlements would increase the projected structural shortfall.
What’s next: The district completed the required public hearing on the preliminary budget; staff will refine the budget reduction plan and return to the board with recommended next steps and any adjustments tied to the state’s final budget decisions.
