CNUSD presents 2026–27 budget overview: staffing consumes most unrestricted dollars, board asks for clarifications

Corona‑Norco Unified School District staff presented a detailed overview of the proposed 2026–27 budget, the state May revise impacts and several multi‑year assumptions, then answered trustees’ questions.

Assistant Superintendent Melissa Elwood and the business services team framed the presentation as a "budget 101" and emphasized transparency and sustainability. Staff reported that closing the 2024–25 books showed $922.6 million in total expenditures (of which $295.6 million were restricted). Of the $627 million in unrestricted expenditures, 81% went to employee salaries and benefits; the district cited a monthly payroll of approximately $45 million. Services and other operating expenditures represent about 13% of unrestricted spending; staff broke that category down to transportation (21% of the 13%), utilities (20%), other services (23%), and legal costs representing roughly 1% of the 13% slice.

Presenters explained the state May revise and Cost‑of‑Living Adjustment (COLA): the statutory COLA of 2.87% plus an additional 1.44% add‑on in the governor’s May revise was presented as a 4.31% rate increase in a slide. Staff noted that the governor’s add‑on includes a requirement to account for 14 weeks of paid pregnancy leave and estimated the district impact at "a couple million dollars" based on district experience and School Services of California analysis (a figure of about $41 per ADA was cited in the discussion).

Key district assumptions for 2026–27 included maintaining an unduplicated pupil percentage at 72% and projecting an ADA decline that staff estimated when asked at roughly 1,200 over the projection window (staff said they are monitoring enrollments and will update at interims). The district presented a projected ending fund balance of roughly $29.7 million for 2026–27, including $121.5 million in restricted grants, $48.2 million in assigned/unrestricted balance, $20.4 million in committed funds and the required 2% reserve of $19.2 million.

Trustees asked several follow‑up questions during the Q&A: what would happen if the district could not certify under AB1200 (staff said county office or state conservatorship intervention is the possible escalation), how the pregnancy‑leave add‑on would be absorbed, and how the district accounts for timing differences between unaudited actuals and projections. Staff also confirmed that federal revenues represent about 3% of total revenue and cover roughly 8% of special‑education costs. Board members pressed staff on SLP caseloads and staffing for special education and requested clearer plans and earlier timelines for workload mitigation.

Staff said the proposed budget will return for board consideration and a formal vote at the June 23 meeting; the hearing on the revised LCAP also remains open for that next meeting.