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Board hears budget forecast showing ongoing deficit spending; trustees urge action on Prop 98 withholding
Summary
District staff presented the proposed 2026–27 budget and a fiscal stabilization plan showing projected deficit spending (~$11.6M) and an unrestricted ending fund balance (~$30.7M); trustees raised alarm about the governor's proposed Prop 98 withholding that could cost the district an estimated $4.1M and asked to mobilize legislative outreach.
District fiscal staff presented the proposed 2026–27 budget on June 10, describing state-level assumptions, revenue-per-ADA changes tied to the governor's 'super COLA' and projected district expenditures. The presentation highlighted a projected $11.6 million annual deficit spending trajectory and an estimated unrestricted ending fund balance of about $30.7 million for the current year.
The staff summarized a fourth iteration of a fiscal stabilization plan that emphasizes (1) reducing contractor/consultant costs, (2) making strategic use of one-time restricted funds to offset general-fund costs, and (3) aligning staffing to actual enrollment. The presentation noted an identified $16 million above the 10% local reserve cap that the board would need to commit by resolution.
Trustees focused on statewide policy risk: Board President Briones warned that the governor's proposed Prop 98 withholding — about $3.9 billion statewide in the May revision — would reduce local district funding and potentially change future funding formulas. The board estimated that withholding at the proposed level could translate to roughly $4.1 million less for this district. Trustee Padilla urged the board to mobilize and meet legislators; Briones said staff would prepare talking points and that trustees would coordinate visits.
