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Gilroy Unified projects $7 million drawdown and previews LCAP changes amid May Revision uncertainty
Summary
District staff presented the 2026–27 budget public hearing: projected general fund revenues of about $180 million, planned expenditures of $193.2 million, a projected $7 million deficit drawdown of reserves, and an LCAP first reading that emphasizes college/career readiness, equity and student wellness. The district cautioned that the May Revision proposals are not enacted and were not incorporated into projections.
At a public hearing Thursday, Gilroy Unified finance and executive staff presented the district’s 2026–27 budget overview and a first reading of the Local Control Accountability Plan (LCAP).
Key budget figures: Staff said projected general fund revenues for 2026–27 are approximately $180 million while planned expenditures total about $193.2 million. Because revenue is expected to lag ongoing expenditures, the multi‑year projection anticipates using reserves and shows deficit spending of roughly $7 million in 2026–27, drawing down the district’s fund balance toward its 10% reserve target.
State uncertainty: Presenters emphasized the May Revision’s proposals (including a proposed $2.4 billion special‑education relief and a one‑time $5 billion student support block grant), but said those are proposals, not enacted law. The district’s projections do not include "settle‑up" or other May Revision items until the Legislature and governor finalize the enacted budget.
Enrollment and expenditures: The district reported current enrollment near 10,100 students (down from a 2016–17 peak of 11,483) and said that a continuing decline in average daily attendance has driven revenue pressure. Approximately 75% of district expenditures are staff salaries and benefits.
LCAP first reading: Staff presented the LCAP’s five goals—rigorous learning and college/career readiness; maximizing resources for equitable supports; school climate and student wellness; high‑quality basic services; and a Mount Madonna equity multiplier to reflect student needs at that site. Presenters identified actions that may be trimmed when one‑time grants sunset, including reductions to a site‑based new teacher mentor program and narrowed edtech licensing. The LCAP ties about $18 million in LCFF supplemental/concentration funds to targeted interventions and lists metrics the district will use to measure progress.
Board discussion: Trustees asked for clarifications on enrollment assumptions, fidelity metrics for PBIS and MTSS implementation, and the LCAP timeline; staff said they will return a final LCAP for adoption on June 18 and submit the document to the county office by June 30.
What’s next: The board will take final action on the budget and LCAP at its June 18 meeting. Staff said changes could be made to the multi‑year projection if the state budget enacts the May Revision proposals.
Quotes: "We are still deficit spending in 26‑27 and through the multi‑year projection," a presenter said, noting that the district must plan corrective measures if revenues do not materialize.
Ending: The budget hearing was informational; the board is scheduled to vote on the final LCAP and budget June 18.
