District presents budget draft showing short‑term deficits and possible staffing reductions as it adopts new vision

San Mateo‑Foster City School District finance officers and the superintendent presented the 2026–27 budget adoption draft on May 20, outlining conservative revenue assumptions, multi‑year projections and programmatic changes tied to a newly adopted community strategic plan.

The district showed a projected structural deficit in 2026–27 and 2027–28 in the draft multi‑year model, with the projection narrowing by 2028–29. Officials said they are factoring in a likely revenue boost — roughly $3 million annually — as the state raises the special‑education base rate; the district also expects additional professional‑development and learning‑recovery funds. At the same time, staff emphasized that the district must align ongoing spending with the new strategic plan and demographic trends.

Superintendent OOA said the district will recommend staff reductions over the next year as part of reconfiguring central office positions and program structure to meet the new vision: “We will recommend to the board layoffs in a number that is really different than we have had in the last five years,” he said, adding that the district will follow statutory processes and work with bargaining partners to mitigate impacts.

Finance staff presented several conservative assumptions embedded in the draft: property‑tax growth assumptions of 4% for 2026–27, multi‑year staffing‑reduction placeholders (several million dollars in 2027–28 and 2028–29), and continuing monitoring of state and federal funding. Officials said some funding items — including expanded special‑education reimbursement and certain grant awards — may increase available resources as the fiscal year closes.

The board received the budget draft for information and will consider adoption in June. District leaders said they will engage labor partners and the community openly while the longer‑term strategic implementation and staffing plans are developed.