Development News for Santa Clara, California

Santa Clara Unified School District Proposes 2026-2027 Budget with $17 Million Deficit, Despite Revenue Growth

The Santa Clara Unified School District board discussed the proposed 2026-2027 budget, projecting total revenues of approximately $429.5 million and expenditures of $446.6 million. The budget reflects right-sizing efforts, resulting in a decrease in certificated salaries by $37.7 million. Key assumptions include a 5% increase in secured property taxes and a 2% increase in RDA residual. The district anticipates a projected deficit spending of $17 million, a significant improvement from previous years, attributed to right-sizing efforts and revenue increases. The board also considered a transfer of $800,000 from the special reserve fund for post-employment benefits to the general fund to offset current year retiree costs, and a $43.1 million transfer from emergency reserves to close out the 2025-26 fiscal year. The governor's May revise proposal includes an augmented COLA of 1.44% for the Local Control Funding Formula (LCFF) and a significant increase in special education funding. Potential one-time funding of $1.3 million from the Learning Recovery Emergency Block Grant and $12.6 million from a discretionary block grant are also being considered. The budget does not yet include potential costs associated with a proposed paid pregnancy disability leave mandate.