District says it has lost $7.5 million a year in state aid since 2019

What happened

Hillsborough's state aid baseline has fallen by more than $7.5 million since 2019-20, which the district calculates as about $26 million it could have spent on students over that period. The 2026-27 budget takes a further $519,761 cut and loses a $1 million one-time tax-levy-incentive grant, and state aid overall drops from $21,035,094 to $17,758,333. The superintendent explained on September 28, 2026 that the mechanism is local fair share: the funding formula reads rising property values as greater local capacity to pay, and Hillsborough property values have risen 41.85 percent in five years. The district is backing Assembly Bill A3881, which would average local fair share over several years to smooth out spikes.

Why it matters to families

This is why the same board that cut its own tax increase to 1.31 percent is also draining reserves. Aid that falls while costs rise leaves only three options - raise the levy, spend reserves, or cut - and the district has used the second heavily: capital reserve drops to an estimated $1,948,754 by June 2027 and the legal reserve to zero.

The evidence

The August 24, 2026 meeting recording contains the superintendent's account of the $7.5 million baseline loss, the bond rating improvement from AA-minus to AA, the move to a self-insured health plan and the A3881 explanation. The September 28, 2026 recording contains the local fair share and 41.85 percent property value explanation. The 2026-27 user-friendly budget and the 2025-26 tentative budget presentation carry the aid figures.

The source