AUSD's 2026-27 budget presented with some optimism

By Mike Chaldu · Wed Jun 03 2026

District also honors Teacher of the Year, Classified Employee of the Year in Supervisor's Report

ATASCADERO — In its next-to-last meeting of the 2025-26 school year, the Atascadero Unified School District Board on Tuesday, July 2, was presented the 2026-27 Annual Budget by Assistant Superintendent of Business Services Kendyl Darnell, who brought a bit of good news.

Darnell said that while the budget outlook was pessimistic at the start of the school year, the outlook now is a little better than the district envisioned.

Before giving the actual AUSD budget, Darnell made a presentation on the state's May budget revision and how it affected California schools.

With information taken from the May Revision Workshop prepared by consultant School Services of California, it was determined that the state is projecting a significant gain in personal income tax (PIT) revenue, which is the stream the state relies heaviest on, according to Darnell.

"The state has more money from that, but is exercising caution," she said. "So that's how we are approaching local budgeting." She also added the revenues are at risk to future economic conditions and impact of proposed tax initiatives, as well as insurance market instability, wildfire recovery cost, and potential climate-related disasters.

As far how it would affect AUSD, Darnell said a higher-than-expected 4.31% cost-of-living adjustment (COLA) would bring funds to allow AUSD to pay for mandated Maternity Disability, while an increased amount of about $2 million Special Ed Funding would reduce the local contribution to that fund.

Also coming when the Revised Budget is adopted by state would be additional one-time investments to the Learning Recovery Emergency Block Grant and the Student Support and Professional Development Discretionary Block Grant.

"Things are a lot better than we thought they would be a few months ago," Darnell said.

In presenting the AUSD budget, Darnell noted that most of the revenue is derived from the Local Control Funding Formula (LCFF), which allocates resources on student attendance, district demographics, and student needs.

"Our average daily attendance (ADA) number for 2025-26 is 4,011 students, which comes to 93.8% of students in the classroom," Darnell said. "We have students showing up, which definitely impacts budgets."

Ultimately, Darnell reported that projected revenues for the 2026-27 school year are $71,337,731, with expenditures projected to be $74,446,156. That comes out to a deficit of $3,108,425 which is a decrease from the $4,797,277 shortfall from 2025-26.

"The district's on a much stronger trajectory," Darnell said. "With the rise to COLA, additional special ed funds, and reduction in contract services [outside hires], we're on track."

A follow-up to the budget presentation, a Program Funding Sustainability Discussion, the main topic for which became the fate of two outdoor education programs: Living Among the Oaks (LATO), and One Cool Earth (OCE). Advocates for the programs had taken the podium during Oral Communication at the previous meeting on May 19, when they had gotten notice that the programs could be cut.

At the June 2 meeting, Darnell said there was a misunderstanding about the LATO and it would be in the 2026-27 budget. OCE however, would be dropped.

Darnell said the OCE program was funded by a few different sources that have been exhausted this school year. Also, she contacted site administrators to evaluate OCE and said the feedback was "mixed."

With that, Darnell said that site administrators, such as school principals, were free to and encouraged to reach out to programs like OCE if they value it for their school, and establish the program there in partnership with the PTA or other local organizations.

In other business, Superintendent Dr. Thomas Bennett recognized the district's Classified Employee of the Year, Laine Hoppert and Julie Davis as Educator of the Year in his Superintendent's Report.

"What’s special is that these awards are from your peers," Bennett told Hoppert in a statement that could also pertain to Davis. "What an amazing group we have in this district, and for you to be selected by them says a lot."

Bennett introduced Hoppert as someone who came to the district as a yard duty supervisor and eventually came aboard permanently as a cafeteria assistant at San Benito Elementary. She is also the president of the California School Employees Association chapter in Atascadero.

Bennett quoted a statement from San Benito Principal Kat Holmes, which said in part, the Hoppert "has been a steadfast face on campus. She connects with students and teachers, and her laugh is infectious."

Bennett himself praised Hoppert and noted that "she was one of the first people to reach out to me when I got this job, and I always appreciated that."

Baker was honored as Educator of the Year. A math and health teacher at Atascadero Middle School (and previously Santa Rosa Academy), she was credited by Bennett as a model educator in the district.

"Julie represents the very best of the teaching profession in AUSD," Bennett said. "Her lessons are highly effective, a model to colleagues across the district, and she shows the same level of commitment outside of class."

Bennett also identified Davis as a member of his "kitchen cabinet," who has always been willing to come in as early as 6:45 a.m. to meet and stay late if she needs to.

"Julie's impact is felt across every level of the school," he said. "She's a leader, collaborator, and a model educator whose dedication and professionalism sets a high bar for excellence."

In adjourning the meeting, Board President Denise McGrew-Kane announced the board would be meeting again next Tuesday, June 9, the last meeting of the school year, with closed session beginning at 3 p.m. and open session at 4 p.m.