Fresno Unified trustees are applauding the likely return of billions of dollars in funding to California schools and community colleges in the 2026-27 budget.

According to EdSource, a flurry of AI investments has brightened the state budget picture, turning a projected deficit into a potential $25 billion general fund surplus.

The final amount of restored funding will not be known until legislative leaders and Gov. Gavin Newsom negotiate a revised state spending plan.

Good News Comes as Districts Face Budget Deficits

The possibility of receiving billions above forecasted amounts is good news for K-14 districts struggling with layoffs and other budget cuts.

“More money is always good,” Valerie Davis, the trustee representing the Sunnyside High region, told GV Wire.

Davis added that she needs to examine the budget and determine how the district can maximize funding for its student outcomes-focused governance.

“I’m thrilled to hear that. We definitely need the support,” said Bullard High region trustee Susan Wittrup. “Our students need the support for programs and hiring teachers. … I would need more information about how it would impact Fresno Unified directly.”

The state’s third-largest school district has made reductions that include hundreds of buyouts and layoffs as it deals with a projected $77 million deficit. The deficit stems from inflation, employee raises, declining average daily attendance and the end of COVID-era special funding.