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District staff outlines 2026–27 budget projections, warns of structural gaps
Summary
Staff presented 2026–27 revenue and expenditure projections for Loma Prieta Joint Union, emphasizing reliance on property taxes as a basic-aid district, a structural shortfall in special-education funding and reserve trade-offs ahead of the adopted budget process in May and June.
Staff opened the board's budget study by framing the presentation as an informational review of the assumptions that will guide the adopted budget for 2026–27. "So welcome to the budget study for 2526. It's for the 2627 projections," the presenter said, then walked trustees through the district's revenue mix and projection method.
The presentation explained the district is a basic-aid district, meaning local property-tax revenue exceeds its LCFF (Local Control Funding Formula) entitlement and therefore provides the bulk of operating funds. Staff described the district's approach to estimating revenues: using historic patterns, county monthly estimates and cautious growth assumptions (staff applied a 3.25% property-tax growth assumption for the 2026–27 projection). The presenter noted one-time grants (for example, a professional-development block grant) are expiring and that many restricted pots are declining, reducing flexibility.
Trustees pressed staff about the district's cash-flow and reserves. Staff explained monthly average expenditures are roughly $800,000 and illustrated the timing gap between property-tax receipts (December and April) and month-to-month obligations. The discussion highlighted the board's tradeoffs: using reserves to preserve programs and raises versus protecting cash flow for emergencies.
Special education emerged as a structural pressure on the general fund. As staff put it, "the revenue that is provided for special education is a 153 percent less than what our expenditures for special education are," meaning the district covers a large share of special-ed costs from unrestricted funds. Trustees discussed whether to increase annual set-asides for deferred maintenance and whether to target reserves at a two-month level (about 17% under staff's calculation) rather than the board's current 12% policy.
The presentation closed with schedule notes: staff will continue refining estimated actuals and present the adopted budget on May 27 with final adoption scheduled for June 17. The report offered board members a series of choices about reserve targets, maintenance funding and how to phase parcel-tax and LPF commitments into next year's plan.
