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Santa Paula Unified projects multi-year budget shortfall; board hears LCAP priorities and possible cuts
Summary
At the June 11 board meeting, finance staff presented the proposed 2026–27 adopted budget and LCAP draft, showing a projected multi‑year structural deficit driven by declining enrollment and the end of one-time grants; trustees discussed potential program reductions and asked for a budget recovery plan and prioritized program list.
District finance and LCAP staff told the board they are proposing the 2026–27 adopted budget alongside a draft Local Control and Accountability Plan (LCAP) that aligns resources to targeted student groups.
Staff outlined key budgeting assumptions (COLA projections including a 2.87% base COLA and a proposed 1.44% supplemental COLA, enrollment and ADA factors, and ongoing vs one-time funding). They reported a projected multi‑year deficit even after planned staffing adjustments and identified roughly $5–6 million of revenue reductions driven by expiring one-time grants and program carryovers (for example, CalEnergy, SPUDS, LCRS, and other one-time state allocations). Finance staff explained that with the current assumptions and planned cuts the district still faces a structural deficit in subsequent fiscal years if additional funding does not materialize.
During the presentation staff walked trustees through revenue and expenditure scenarios, an estimated ending unrestricted fund balance trajectory (showing declines across the multi‑year projection), and potential upside if pending state budget items (e.g., additional student allocations, ELRA special‑education adjustments, or SPUDS allocations) are finalized at the 45‑day revision. Finance staff emphasized next administrative steps: finalize unaudited actuals, host first‑interim updates in the fall, and monitor enrollment and state budget outcomes closely.
Trustees pressed for concrete next steps, including a budget workshop, a list of prioritized district programs (a "1–10" ranking or similar stack-rank), and immediate planning about staffing ratios, class-size adjustments, and the feasibility of a temporary spending moratorium on nonessential purchases. Several trustees stressed protecting direct student services (ELD, special education) while acknowledging the district must consider systemic reductions to adapt to lower projected revenues.
What happens next: Staff will continue to reconcile unaudited actuals, pursue potential state and grant revenue, convene the budget committee for prioritized options, and return with specific recommendations and timelines for any reductions or reallocation to achieve a sustainable multi‑year budget.
