Board adopts 2026–27 budget amid multiyear deficit concerns; special-education costs climb

The board approved the 2026–27 adopted budget after a presentation by the district’s chief financial/operations officer. Staff walked trustees through the key assumptions and program-level pressures that underlie a multiyear projection of deficit spending.

Santha Rajiv summarized the assumptions and figures: property-tax growth is modeled at 3.5%; projected combined general-fund income for 2026–27 is $155.6 million while projected expenditures are $158.8 million, creating a near-term deficit the budget covers with prior-year savings and reserves. Rajiv said the district is not in immediate fiscal crisis but expects ongoing pressures: a projected deficit of about $1.7M in the current year and $3.7M the next year under present assumptions.

Program slides highlighted several pressure points: the expanded-learning/after-school program shows roughly $3.5M in revenue versus $4.5M in expenditures (a shortfall of about $1M); home-to-school transportation shows a $1.7M gap; food services served more than 1.3M meals and will need ~$340K of general-fund support; and special-education spending was projected to grow from about $21.1M in 2021 to roughly $39M in 2026–27. Staff noted an increase in special-education student counts (from roughly 613 to 837) and that the district’s share (encroachment) is driven in part by underfunding at state and federal levels.

Trustees asked multiple questions about developer fees, maintenance-of-effort rules for special education, and options to reduce encroachment. Staff said developer fees are restricted and can only be used for authorized capital projects, explained maintenance-of-effort mechanics, and committed to a deeper audit of special-education spending and grant opportunities to offset costs. The board voted to adopt the budget (recorded vote: unanimous by voice at the meeting).