By Elevo Marketing
On January 16, 2026, Elevo had the pleasure of hosting our latest Community of Practice (CoP) meeting, bringing together dedicated school district administrators and education leaders. These regular gatherings are more than just meetings; they are vibrant forums for sharing knowledge, tackling challenges, and building the collaborative networks essential for student success. This session, focused on the newly released state budget, provided critical insights and reinforced the power of our collective efforts in shaping the future of education.
Our partners at Capitol Advisors, Jack O’Connell and Caitlin Jung, expertly broke down the complexities of the proposed budget, offering clarity and strategic guidance for districts. This article will explore the key takeaways from that conversation and actionable steps for district leaders.
Decoding the 2026-27 Education Budget
The governor’s proposed budget presents a promising, though complex, landscape for California schools. Characterized as a “maintenance budget” with significant investments in existing programs, it signals a commitment to stabilizing and enhancing the educational ecosystem. Understanding the nuances of this budget is the first step for administrators to effectively plan and advocate for their students.
Key Funding Highlights for Districts
Several key allocations stood out during our discussion, offering both opportunities and points for consideration.
- Cost-of-Living Adjustment (COLA): A 2.41% COLA will apply to the Local Control Funding Formula (LCFF) and several key categorical programs, including Special Education. This adjustment is a welcome acknowledgment of rising operational costs, though it doesn’t extend to all categorical funds.
- One-Time Discretionary Block Grant: Perhaps one of the most significant proposals is a $2.8 billion one-time discretionary block grant. This translates to roughly $500 per student and offers districts maximum flexibility. Whether used to address rising costs, pilot new wellness initiatives, or support professional development, these funds empower local leaders to meet their most pressing needs. However, the one-time nature of this funding requires strategic, forward-thinking planning to avoid creating unsustainable long-term obligations.
- Expanded Learning Opportunities Program (ELO–P): As a cornerstone of the governor’s vision, ELO–P is set to receive an additional $62.4 million. This investment aims to stabilize Tier 2 funding at a more predictable rate of $1,800 per student. Tier 1 remains unchanged at $2,750. This move provides much-needed consistency for program planning and helps ensure that more students have access to high-quality after-school and summer programs. It’s a clear signal of the state’s continued investment in the whole child.
- Community Schools: A landmark proposal includes $1 billion in ongoing funding for Community Schools. This is a critical shift from previous one-time investments, providing a sustainable foundation for schools to integrate academics, health services, and family support, creating powerful hubs for student and community well-being.
Turning Insights into Actionable Strategies
Budget proposals are complex documents, but their real value lies in how they translate to on-the-ground action. Our CoP meeting focused on moving beyond the numbers to identify practical strategies that administrators can implement now to prepare for the coming school year.
Leverage Flexibility, Plan for Sustainability
The discretionary block grant offers a rare opportunity for unrestricted investment. Districts should begin conversations now to identify the highest-impact use for these funds. Could they kickstart a mental health program? Could they provide targeted professional development for TK staff? While the possibilities are broad, the key is to balance immediate needs with long-term goals. Using one-time funds to launch a pilot program can be a powerful way to demonstrate impact and build a case for future, sustainable funding from other sources.
Stabilize and Strengthen Expanded Learning
With the proposed stabilization of the ELOP Tier 2 rate, districts can plan their expanded learning programs with greater confidence. The expected finalization of this rate in February provides a clear timeline for budgeting and staffing. This is an opportune moment for districts to evaluate their current ELOP offerings. Are programs well-attended? Are they meeting the academic and social-emotional needs of students? Now is the time to refine and strengthen these programs to maximize their impact on student learning and development.
Advocate and Collaborate
One of the most powerful themes from the meeting was the importance of advocacy. While the budget contains many positives, it also includes a proposed $5.6 billion underfunding of Proposition 98. This complex maneuver is a significant concern for the education community, as it could set a precedent for how education is funded during challenging fiscal times.
Leaders from Capitol Advisors emphasized their work to contest this manipulation, but the voice of district leaders is crucial. Sharing stories about the real-world impact of funding decisions with legislators makes a difference. This is where the power of a Community of Practice truly shines. By coming together, sharing challenges, and speaking with a unified voice, we can more effectively advocate for the resources our schools and students deserve.