Finalized State Budget provides boost to CCUSD revenue

Several bumps in education funding in California’s state budget have improved the immediate state of the Culver City Unified School District's budget for the 2026-27 fiscal year, providing around $8.4 million in additional revenue for the District to use on Special Education and other rising costs.

New Superintendent of Business Services Deo Persaud, who replaced the outgoing Santha Rajiv on July 1, explained in his budget presentation at Tuesday night’s Board of Education meeting that there were two main changes finalized in the state’s budget on June 29 that provided funding. The first was an increase in the allocation for Average Daily Attendance by more than 40% for Special Education Local Plan Areas (SELPAs) through a $2.4 billion state budget allocation, resulting in a $2.5 million annual revenue increase for CCUSD.

Funding distribution for a Student Support and Professional Development Discretionary Block Grant expected to be given to school districts was not finalized before the District was required to submit its budget for approval, but was officially solidified in the approved state budget. This grant provides a one-time funding bump of close to $5.9 million for CCUSD that is targeted at funding professional development, but can also be used for “addressing rising costs.”

The $2.4 billion in ongoing revenue is designated for the state’s 130+ SELPAs, which are state-mandated consortia of school districts and/or county school offices in close geographic proximity that pool funds to ensure equitable Special Education resources are available statewide. CCUSD is part of the Tri-City SELPA alongside Beverly Hills Unified School District and Santa Monica-Malibu Unified School District.

Similar to individual school districts, SELPAs are allocated state funds based on the Average Daily Attendance of their member schools. This funding supports the additional learning services needed to equitably educate students with disabilities, which cost almost triple the amount for the general student population, according to a 2019 California Legislative Analyst's Office report.

The District also receives federal entitlements and grants for special education, but uncertainty remains about those funds moving forward as President Donald Trump continues with plans to decommission the U.S. Department of Education.

Special Education has been historically underfunded by the state, so the District has had to tap into its General Fund to fulfill its obligations to students with disabilities. Special Education costs have been one of the strongest cost pressures in the District, and the pressure on the General Fund has trended upwards in recent years. While the General Fund contribution to Special Education is down year-over-year in the 2026-27 fiscal year to $17.3 million, it has nearly doubled over the past seven years, up from $9.6 million in 2019-20.

These boons are not enough to fully address the looming structural issues moving forward. Concerns about the combatting the District’s declining attendance and the loss of Redevelopment Agency funds while offsetting new costs like a paid pregnancy leave mandate for which CCUSD did not receive state funding to implement and rate hikes on insurance policies will need to be addressed in the coming years to ensure CCUSD's long-term financial health, Persaud explained Tuesday night.

There is a 45-day revision window after the Governor signed the annual Budget Act, during which the District can incorporate the new $8.4 million in funds into its budget.