Like many educational agencies across the state and nation, SCCOE faces budgetary challenges caused by expiring grants, declining student enrollment, and rising operational costs. These difficult decisions are necessary to sustain essential programs for students and families.

SCCOE is addressing three core areas with reductions – expiring grants and potential funding cuts to state and federal grants, declining enrollment in Santa Clara County, and organizational restructuring and efficiency measures related to the Local Control Funding Formula (LCFF).

SCCOE is expecting a total grant funding loss of approximately $74.6 million as it braces for reductions or expirations of several state and federal grants, including California State Preschool Programs (CSPP), Youth Health & Wellness (YHW), Head Start, Migrant Education, and Tobacco Use Prevention Education (TUPE). While some federal grants may be reinstated, current funding levels require immediate adjustments. Unless there is certainty from the federal government that applicable grants will be renewed, SCCOE and other agencies must do layoffs in order to ensure fiscal solvency. The Education Code requires these notifications be provided to affected staff by March 15.

In addition to grant reductions, student enrollment in Santa Clara County declined by 11.17% from 2019-20 (263,462) to 2023-24 (234,027). Declining enrollment in local school districts has led to school consolidations, impacting SCCOE’s Special Education program. Student enrollment in SCCOE’s Special Education program has dropped from 1,026 students in 2023-24 to 916 in 2024-25, with projections estimating a further reduction to 796 in 2025-26. 

Staffing levels have not decreased in proportion to enrollment, necessitating realignment to ensure fiscal responsibility. SCCOE’s core funding has remained stagnant – approximately $34 million a year – since 2013-14 due to the LCFF. This means that SCCOE is receiving the same revenue from the state to provide county services while costs continue to rise. 

SCCOE is committed to assisting impacted employees by providing resources and transition support through a range of layoff and career guidance sessions and workshops. The County Office of Education will continue to advocate for sustainable funding solutions while maintaining a strong focus on student success and district support.

###

Working collaboratively with school and community partners, the Santa Clara County Office of Education (SCCOE) is a regional service agency committed to serving, inspiring, and promoting student and public school success. The SCCOE is a premier service organization driven by the core principles of equity, diversity, inclusion, and partnership. For more information about the Santa Clara County Office of Education, please visit www.sccoe.org and follow us @SCCOE on Facebook, Instagram, and LinkedIn​​.