SRCS Board Updates: Budget Reductions and MacPhail Site

Board Approves Budget Reduction Plan

SRCS is facing the challenging task of making budget reductions for our Elementary School District and High School District. At its meeting on Jan. 27, 2026, the SRCS Board of Education approved a two-year plan to ensure fiscal stability. Like many districts throughout California, SRCS is experiencing financial pressure due to expiring one-time state COVID grants, rising operating costs and declining student enrollment. We are grateful to the members of our community who served on our Budget Advisory Committees (BACs). Their time, expertise and collaboration helped us navigate these tough choices and guide recommendations on how to reduce our spending.  At the meeting, the Board accepted and acknowledged the work of the BACs and provide direction to staff to implement reductions over the next two years: 2026-27 - Implement reductions to meet the identified deficits as well as position the District for the one-time funds sunsetting 2027-28 - Implement reductions and/or absorb prioritized expenditures into the general fund while monitoring the remaining one-time funds, enrollment, revenues and reserve levels  The phased approach allows us to address immediate structural deficits, while also preparing for additional adjustments in the future. Some of the reductions outlined will be made heading into the coming school year; then, as we plan for 2027-28, we will continue to closely monitor financial conditions and enrollment and implement further reductions accordingly.  We’re proud of the exceptional work happening in our schools and classrooms, and that work will continue! Even as we make these difficult reductions, our priority continues to be providing high-quality learning experiences and ensuring the safety of our students. While this process has not been easy, it has shown the strength of our community, our collaborative spirit and our shared focus on what matters most - our students. View the slide deck Watch a recording of the presentation (starts at 1:43:17) View ESD BAC materials  |   View HSD BAC materials Surplus Property Update:  Board Approves Sale of MacPhail Site At its January 27, 2026 meeting, the SRCS Board of Education approved the sale of the MacPhail site following a lengthy, transparent process to make the highest and best use of the District asset to benefit our students, our community and the District. The MacPhail property has been formally declared surplus, and the District has no current or anticipated educational need for the site. SRCS has remained committed to our duty to our students to ensure that the property is sold at fair market value. After first seeking interest in 2024 from nonprofits and public agencies, the Board issued a competitive public bid process in Sept. 2025. As a result, last evening the Board accepted the highest and best offer from Pazala, a local private family foundation, for $6 million. The foundation has shared its intention to use the site for a community center and open space, in partnership with the Santa Venetia Commons non-profit. Another group submitted a pre-bid questionnaire to make them eligible to bid orally at the meeting, but they did not do so.  As discussed through this process, the funds from the sale must go towards capital improvements and / or ongoing facility maintenance in the District.    The MacPhail surplus property is part of the SRCS Elementary School District. It covers about 9.76 acres and is located on Vendola Drive in the Santa Venetia area of San Rafael. MacPhail was declared surplus in 1979 by the Board following the recommendation of a 7-11 Committee. It was reaffirmed as a surplus property three times after that, including most recently in March 2024. We are grateful to our community for engaging in this process and we look forward to completing the final steps with the new owners to fully complete the sale. Learn more.

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