May revise raises fiscal uncertainty; district told to plan for potential deferrals and state funding shortfalls

Assistant Superintendent Rick Champion told the board the Governor's May budget revise shows substantial statewide revenue shortfalls that could affect school funding and local district budgets. He summarized the administration's proposal to use general‑fund cash to plug gaps in Proposition 98 funding—a so‑called "maneuver"—and explained the legal and fiscal debate over whether that approach will be treated as a repayable loan or would reduce Prop 98 credit to districts.

Champion outlined the scale of the shortfalls discussed in Sacramento, projected deferrals, and a modest COLA of about 1.07 percent. He warned that some statewide school facility funds and other one‑time programs were removed from the proposal, increasing pressure on local capital and operating budgets. Trustee and staff discussion noted the timing of legislative negotiations in June and the need for local contingency work (interfund borrowing resolutions and use of restricted funds only as allowed).

District leaders said they are modeling multiple scenarios and will present budget options at upcoming meetings, and they reminded the public that earlier messaging about a potential local measure may be required if the district seeks voter‑approved funding for facility needs.

No board vote was taken on budget matters at the meeting; staff said they will return with more detailed local options as the state budget process proceeds.