District says May Revision boosts LCFF, but special‑education gap remains

At the May 26 board meeting, Assistant Superintendent and Chief Business Official Keith Pharaoh briefed trustees on the governor’s May Revision for the 2026–27 budget year. Pharaoh summarized key assumptions and what they mean for Ocean View School District’s multi‑year projection.

Pharaoh told the board that the statutory LCFF COLA rose from January’s 2.41% to 2.87% in the May Revision, with an additional 1.44% LCFF investment that the administration presents as raising the effective COLA to 4.31% for 2026–27. "So now the COLA for next year is 4.31%," he said. Pharaoh said the district expects that adjustment will translate into roughly $2 million in ongoing revenue for the general fund.

Pharaoh also highlighted other May Revision items: an increase to the special education base rate and an increase to a one‑time discretionary block grant. Despite those gains, he told trustees the district still faces a substantial special‑education funding shortfall and estimated Ocean View would need roughly another $10 million to fully cover special‑education costs from reliable, ongoing revenue.

Board questions and enrollment sensitivity: Trustees pressed on timing of funds and enrollment trends. Pharaoh said the increased funds would be realized in the 2026–27 apportionments and cautioned that the district continues to project enrollment conservatively; current ADA trends (discussed in the meeting) mean each percentage point of ADA change can materially affect the budget (a 1% ADA change could be about $1 million for Ocean View).

What the district will do next: Pharaoh said he will return with a preliminary budget for public hearing and adoption in June; trustees will consider these updated assumptions as part of the 2026–27 budget development timeline.

Provenance: Presentation by Keith Pharaoh during the Governor's May Revise budget update segment of the May 26 meeting.