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SANTA BARBARA, Calif. — Santa Barbara Unified spent $12.2 million less than projected in 2025-26 as cost-control efforts helped the District finish the fiscal year in a substantially better financial position than anticipated.
The District had expected spending for 2025-26 to exceed revenue by $20.6 million. The year-end deficit figure was $5.4 million, an improvement of approximately $15.2 million from the projection included in the district’s adopted budget report.
“These results show that the steps we took during the year made a difference,” Superintendent Dr. Hilda Maldonado said. “We monitored our budget, adjusted spending, and ended the year in a much stronger position than projected. We also know we have more work ahead to build a balanced and sustainable budget.”
The lower spending was spread across several areas, including staffing vacancies, supplies, contracted services, and other operating costs. Some restricted grant and donation dollars were also not spent during 2025-26 and will carry forward for their designated purposes.
The district also received about $3 million more revenue than projected. Together with lower spending, this resulted in an ending fund balance approximately $15.2 million higher than anticipated.
Santa Barbara Unified remains fiscally solvent and met its required reserve levels. Spending still exceeded revenue in 2025-26, however, and the District’s financial report says continued expenditure management will be necessary and includes a need to reduce $5.4 million this year to balance the unrestricted General Fund and rebuild reserves.
The Board of Education approved the district’s 2025-26 Unaudited Actuals at the September Board meeting. The report reflects the district’s financial activity for the fiscal year that ended June 30.
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