Fallbrook superintendent staff present $111.6 million proposed budget; presenters warn of restricted and unrestricted gaps

At the meeting, Assistant Superintendent of Business Services Armando Faras presented Fallbrook Union Elementary School District's proposed budget for 2026'1027, outlining revenues, assumptions and projected shortfalls.

Faras said the district's 2026'1027 budget is projected to cost approximately $111.6 million. On the unrestricted side he presented total revenues of about $68.3 million and total expenditures of about $69.3 million, yielding an estimated $1.0 million unrestricted deficit. On the restricted side he described total revenues near $40 million and expenditures near $42 million, a roughly $2.0 million gap. Faras said the projected unrestricted ending fund balance is approximately $7 million and described restricted fund balances, gaming funds and the district's beginning and projected ending balances for 2026'27.

Faras reviewed state budget considerations reflected in the May Revision, including a proposed LCFF COLA of about 2.87% plus an additional 1.44% (a roughly 4.3% total increase), as well as new state proposals such as paid pregnancy disability leave that could raise employer costs. He highlighted special education investments and cautioned that revenue is sensitive to personal income tax and capital gains volatility. Faras also noted an estimated new school transportation reimbursement of approximately $865,000 while saying actual transportation costs exceed that amount.

Trustees asked about the status of withheld Proposition 98 funding; Faras said some funds remain unpaid and advocates continue to press for reimbursement. Trustees discussed potential advocacy actions and whether the board should send letters in addition to statewide advocacy by associations.

Faras concluded by outlining next steps: continued monitoring of the governor's budget actions, finalizing numbers when state appropriations are enacted, and returning to the board with updated figures in September. The board will consider the final budget as part of the regular approval process.

The public hearing on the proposed budget was opened and closed during the meeting with no public speakers recorded.