District projects $30.7M deficit in 2026–27 adoption budget; CEA measure falls short of 60% threshold

The Santa Maria Bonita School District's budget study session on June 10 laid out a multiyear picture that administration said requires care in allocating next year's augmented COLA and addressing a persistent special-education funding gap.

Budget highlights presented by Mr. King included total general-fund revenue of about $395,000,000 (unrestricted roughly $293.9 million; restricted roughly $101.7 million), proposed expenditures plus transfers of $426,000,000 and a projected adoption-year deficit of about $30.7 million. The presentation showed an ending fund balance of roughly $148.1 million and noted a multiyear projected deficit in subsequent years.

Mr. King also summarized May Revision changes: special-education base funding per ADA increases from $917 to $1,340 (a district increase of about $6.9 million), but district officials said $44.5 million in unrestricted general-fund support for special education is still projected for 2026–27 (down from a larger prior-year support figure). He flagged a CEA (Current Expense of Education) calculation at 53.16% for the district, below the elementary-district statutory threshold of 60%, representing a technical deficiency of about $26.2 million.

Why it matters: The CEA measure is an older statutory calculation that excludes many student services and whole-child spending; the district said it will pursue a CEA exemption with the county because the formula omits tens of millions the district spends on counseling, mental-health supports, bilingual aides, student transportation and community schools. Board members pressed for clearer explanation of the metrics used to assess program effectiveness, for accessible progress reports, and for a transparent explanation of reserves and discretionary spending.

Board action and timeline: The presentation was an informational study session; the board acknowledged receipt of the draft adoption budget and directed administration to return on June 24 with a proposed budget for adoption and to report any county-required technical changes. Mr. King noted certain mandated cost increases (paid pregnancy disability leave funded by augmented COLA) may offset discretionary capacity in the COLA.

The meeting included public commenters asking for a site-by-site budget breakdown, full clarity on restricted vs. unrestricted uses, and justification for consultant and travel expenditures; administration said potential additional one-time revenues exist but will be budgeted only when certain.