What's Up With the PUSD Budget
PUSD, like all California school districts, is required to balance its budget and maintain a minimum level of reserves. When district leadership (Board and Superintendent) are unable to meet these requirements, the ultimate consequence is that the state takes over management of the school district. As explained in this Ed100 article, state take-overs are rare and there is a detailed sequence of steps that are taken to address a structural deficit before it comes to that point.
The Los Angeles County Office of Education completed a review of PUSD’s Adopted Budget for fiscal year 2025-26. The review resulted in “conditional approval” of the budget. “Conditional approval” means that the County Superintendent approves the budget on the condition that PUSD takes certain specific actions to remedy deficiencies in the 2025-26 budget and multiyear projections.
In other words, PUSD’s Budget for 2025-26 was conditionally approved pending PUSD adheres to some conditions. Hopefully, they will be positive in December by making the following changes:
Updated Fiscal Stabilization Plan (FSP): The District must provide an updated Board-approved FSP with detailed timelines for items occurring in the 2025-26 fiscal year. Additionally, the updated Board-approved FSP should include a comprehensive breakdown for the fiscal years 2026-27 and 2027-28.
Incorporation into Multiyear Projections (MYP): The Board-approved FSP must be integrated into the District’s Multiyear Projections (MYP) to ensure accurate, realistic financial planning and transparency. This should be completed by the 2025-26 First Interim, which is due to LACOE on December 6, 2025.
Staffing Reductions (if needed): If staffing reductions are necessary, PUSD must provide a detailed list of positions and the corresponding staffing reductions. This information should be included in the updated FSP and multiyear projections to reflect the impact on the District’s financial planning.
State funding of schools is based on attendance. Like many districts in our area, PUSD has long been dealing with declining enrollment as housing prices increase and people have fewer children. The Eaton Fire has exacerbated this situation. On top of that, extra federal funding to help districts recover from COVID is expiring this year. All told, PUSD needs to cut $30 million from the 2026-27 fiscal year budget in order to avoid a deficit.
The Superintendent's Budget Advisory Committee (SBAC) was reconvened earlier this fall, and is looking at a wide range of budget cut options. Other working groups are looking at options for restructuring central office functions as well as options for generating revenue through asset management. The SBAC is scheduled to present to the Board in November. $30 million is more than a bit of trimming here and there, so the Board will need to make difficult decisions. It's important for our school community to understand the importance of looking at the big picture rather than pitting specific programs or schools against each other.
Bottom line:
No, PUSD is not likely to be taken over by the state soon. And yes, there will be some challenging changes ahead. Having seen a lot of budgetary ups and downs since I've been a parent in PUSD, I'd encourage you to stay tuned.