Inglewood board hears proposed 2026–27 budget and multi‑year outlook showing projected deficit spending

District finance leaders presented the proposed 2026–27 budget and a multi‑year financial projection at the June 17 board meeting, warning that falling enrollment and carryover rules will drive deficit spending unless the district implements a fiscal stabilization plan.

Assistant Superintendent and Chief Business Official Rafael Guzman introduced Mr. Sid Bata, who reviewed key assumptions — enrollment declines from recent years, an assumed COLA (cost‑of‑living adjustment) and state timing uncertainties — and the projected financials. Bata told the board the district estimated a combined $168 million in restricted and unrestricted revenues for 2025–26 and proposed roughly $150 million in combined revenue for 2026–27, with expenditures that include required carryover budget lines. "We're looking at a total revenue of approximately $109 million and expenditures of $90 million" for unrestricted lines in the proposed budget narrative, and the multi‑year projection showed steady drawdown of reserves under current assumptions.

Perspectives from staff and trustees emphasized that the numbers are fluid: Guzman and Bata noted the state budget had not been finalized and that pending labor negotiations will materially affect projected costs and the district's reserve position. The presenters described a fiscal stabilization plan that targets at least $5 million in reductions per year in 2027–28 and 2028–29 absent other revenue or programming changes. As one presenter summarized, "we have to at least reduce about $5 million each one of those years" to preserve the district's reserve for economic uncertainty given the projected deficit spending.

Board members and the superintendent stressed two parallel paths: identify reductions now to reduce future impacts and pursue revenue or enrollment gains to raise ADA (average daily attendance), which directly drives LCFF funding. Multiple trustees urged rapid follow‑up: close the books for 2025–26 to identify one‑time shifts that can be used to smooth 2026–27, and begin reviewing programs and staffing with an eye to long‑term sustainability.

Why it matters: The budget presentation frames the district’s immediate financial choices, with tradeoffs between personnel costs, program continuity and reserves. The board must adopt a legally required budget before the fiscal year begins in July; however, staff noted they will return with mandatory 45‑day revisions once final state numbers and negotiation outcomes are known.

Next steps: The board is scheduled to adopt the budget at an upcoming meeting; staff will return with 45‑day revisions and with identified options for reductions and revenue strategies.