MCOE presents 2026–27 budget with modest $26,000 projected deficit and $26.9M ending balance

Fiscal presenter Suzanne Steely reviewed the proposed 2026–27 budget, explaining assumptions behind revenues and expenditures and the district’s multi‑year balancing strategy. She said the proposed budget projects a beginning fund balance of a little over $27,000,000, total revenues of $27,600,000 and total expenditures of $27,700,000, resulting in a net decrease in fund balance of $26,000 and an ending fund balance of $26,900,000.

Steely walked the board through revenue assumptions including LCFF adjustments and a combined LCFF COLA of roughly 4.31% (statutory COLA of 2.87% plus a discretionary 1.44%). She described reductions in direct‑service revenue tied to lower district demand for psychologists and other specialists, enumerated federal and state funding decreases, and listed committed reserves (facilities upgrades $2.5M; technology upgrades $1.145M; district loans $2M; economic uncertainty reserve $4.1M). On expenditures she noted salary and benefit changes, PERS and STRS rate movements, and a $0 equipment/facilities allocation in the general fund because capital purchases were completed in 2025–26.

Board members asked whether donations that previously funded weekend meals for homeless students would be replaced; staff said a probation department donation increased support (about $80,000) and that some other one‑time donations had been spent. On solar project savings staff estimated project completion by December 2027 and noted net savings would accrue after that work comes online. The presentation closed with staff stating the budget was developed using the governor's May revision, LCFF calculations, enrollment and staffing projections and carried forward multi‑year funds coded to beginning balances.