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Poway Unified presents 2026–27 budget first reading, projects $11.4M unrestricted gap while reserving 9%
Summary
Finance staff presented a 2026–27 budget first reading that incorporates the governor’s May revision assumptions (total COLA 4.31%), raises in special education per‑ADA funding, and conservative treatment of a discretionary block grant; staff said the district would still project an $11.4M unrestricted deficit while preserving 9% reserves and may revise the budget within 45 days of the governor's signature.
Chief financial presenter Eric Dill and the district finance team gave the first reading of Poway Unified’s proposed 2026–27 budget on June 11, walking trustees through revenue assumptions, built‑in labor settlements and expenditures.
Dill said the district incorporated the governor’s May revision assumptions — a statutory COLA of 2.87% plus a roughly 1.4% augmentation tied to a paid pregnancy disability leave proposal — producing an assumed COLA of 4.31%. He said the state proposal also raises the special education base from $917 per ADA to $1,340, which the district included in revenue assumptions.
Using conservative estimates for the one‑time discretionary block grant (the presentation used a $16.8 million placeholder rather than the higher Senate proposal), Dill said the package increases projected revenue nearly $27 million year over year but still leaves the district with an $11.4 million unrestricted deficit when all assumptions and tentative labor settlements are included. He said the district maintains roughly 9% reserves and can adjust the budget within 45 days after the governor signs the final budget if the legislature’s final deal changes revenue expectations.
Dill and finance staff (including director Justine Galura and finance manager Jackie Lynn) outlined how the district handled one‑time versus ongoing dollars, built in costs tied to tentative collective bargaining settlements and assumed higher health benefits costs. He also described multiyear projections showing the district could reach balance in 2027–28 with further budget solutions (the staff target was increased from $10M to $13M in projected reductions).
Trustees pressed staff on the timing and certainty of benefit‑rate negotiations, the impact of a potential larger discretionary block grant, and whether additional one‑time grant dollars could be used to cover short‑term debt service (for example, a planned chiller project). Dill said the district would be cautious about using one‑time funds for ongoing costs, but acknowledged restricted one‑time dollars could temporarily reduce pressures on the unrestricted side.
Board members and staff agreed to return with further detail, and Dill said the board would be asked to adopt the budget on Monday pending the legislature’s action and the governor’s signature. If assumptions change materially, the district may bring revisions in a 45‑day budget revision.
