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SANTA BARBARA, Calif. — Santa Barbara Unified’s Board of Trustees on Tuesday adopted its 2026-27 budget and Local Control and Accountability Plan (LCAP), cutting its structural budget deficit by more than half while maintaining funding for key student programs.
Through targeted cost reductions and rising local revenue, the district reduced its structural deficit from $20.6 million to $9.7 million.
To achieve those reductions, staff assessed each contract to determine its actual impact or benefit on student outcomes. The District Office was reorganized to streamline responsibilities, keeping Santa Barbara Unified’s focus firmly on classroom staff and students. Furthermore, District administration reviewed vacant roles and consolidated unneeded positions. Leadership roles were also reimagined, leading to the elimination of one management position by combining the Director of Emergent Multilingual Learners role with the Career Technical Education Coordinator position. This strategic alignment ensures a single, dedicated professional works to guarantee equal opportunities for every student.
The budget cycle aligned three planning documents: the districtwide accountability plan, the 2026-27 proposed budget, and individual achievement plans for all 18 school sites. District officials said the alignment ensures that financial investments directly support core educational goals.
Revenue is projected to grow by $4 million, while spending will decrease by $6.7 million. Because Santa Barbara Unified is a community-funded district, its core funding relies on local property taxes rather than state enrollment formulas. While property tax revenue continues to grow, officials said the remaining deficit is driven by rising costs, including inflationary pressures, health benefit rates, and negotiated salary increases.
Salaries and benefits for all staff account for 85% of the District’s general fund.
“We’ve cut our deficit nearly in half while staying true to the commitments in our LCAP: investments in literacy, math, mental health, and belonging for every student. The work we’ve done this year shows we can make disciplined, values-based decisions without losing sight of what matters most: the experience our students have every day,” Superintendent Hilda Maldonado said.
District officials also addressed the decline of its primary reserve fund. Deficit spending caused the Reserve for Economic Uncertainties to drop from $6 million to approximately $289,000. However, officials noted the district remains financially stable, backed by $16.3 million in its special reserve fund. District staff plans to present a strategy and timeline to the board to rebuild the primary reserve.
Full copies of the newly adopted budget and accountability plans are available to the public through the district’s online board meeting portal
