The Pasadena Unified School District leadership remains deeply committed to maintaining a quality education for our students while resolving the district’s budget shortfall due to the expiration of one-time COVID relief funds and lower-than-expected State revenue.
Our priority is to increase our students’ proficiency in literacy and math and advance their college and career readiness in an environment that prioritizes their well-being.
PUSD’s final budget for 2024-25 included measures to ensure fiscal stability for the next three years and achieved positive certification from the LA County Office of Education.
The effort continues through the 2026-27 fiscal year to meet our goal of long-term budget sustainability. Like other districts across California, we are currently spending more than we are bringing in in revenue, or deficit spending. PUSD’s responsible fiscal stewardship during the pandemic allowed us to grow our one-time reserves. While we are fortunate that these one-time reserves are sufficient to cover the deficit this school year, we are projected to fully exhaust our reserves, and, in fact, have negative reserves, by the end of next school year if no actions are taken. We are facing difficult choices, but the work has already begun.
We have already made progress in our deep review of our district’s financial practices and operational efficiencies and are adjusting to improve both the short and long-term budget outlook.
In continuing our work, we are fulfilling our commitment to engage our community through the Superintendent’s Budget Advisory Committee, gathering a wide range of views on our progress and future. The Advisory Committee is helping identify priorities and will provide valuable recommendations.
Here are some key steps we have taken as part of the district’s Fiscal Stability Plan that strengthen the district’s fiscal stability by 2026-27 and beyond:
- As a result of reductions to the 2024-25 budget, we realigned the services of central office staff and moved them to schools and classrooms
- We achieved reductions as possible by attrition through retirements and closing of vacant positions;
- We are reviewing hourly payroll expenses and working to bring some contracted services in-house
On the other side of the ledger, we are actively enhancing revenue by increasing attendance, managing assets, and offering services to other districts. This is wide-ranging and creative in developing additional revenue to offset necessary budget reductions.
These have been crucial steps in our budget, a demanding task involving the Board of Education and our PUSD community in the decision-making process.
The PUSD Board of Education fully understands its responsibilities and works closely with staff to address this critical issue. Budget stabilization is a long-term process with many steps along the way to fiscal solvency, at the same time protecting the learning of the students entrusted to our care.
Our path to fiscal stability has been challenging and is ongoing. We are committed to making our district stronger and more efficient in serving our community of students and families/caregivers.
This effort will continue through the 2026-27 fiscal years to meet our goal of long-term budget sustainability.
We are proud of our teachers, administrators, and staff and their professionalism. We are committed to ensuring fair and equitable compensation for our valued employees.
