Budget Development

2018-2019 Budget & Fiscal Stabilization 2018-2021

2018-2019 Budget

  • Starting with the 2018-2019 academic year, Pasadena Unified is fundamentally changing its budget and planning process to support the instructional core.

    Even as our schools rise academically, our district is facing a hard reality: enrollment, while steady in the last few years, continues to decline; the achievement gap among of students persists; and benefits and health care costs have jumped. We began the 2017-2018 year with a $5.7 million deficit and $10-12 million in anticipated cuts in the next two years.

    The path ahead is challenging: we must simultaneously be more efficient with the resources we have and more effective in the way we spend.  We must develop greater accountability for spending that makes the most of our resources. Together, we must take courageous, strong, and consequential actions that right-size our district and deliver excellent educational programs for all students.

    With so much at stake, now is the time to shift the way in which we plan and budget. PUSD is refocusing on the "instructional core" — the essential interaction between teacher, student, and content that creates the basis of learning, connects it to district wide strategies for improvement, and funds it appropriately.

    In  August, the Board of Education took a critical first step in this shift to examine data and address the root issues that have hindered student learning and progress. The Board revised the district’s Mission and Vision, and identified three priority areas for the coming year:

    1. Continuous improvement in academics and operations
    2. Increasing socioeconomic integration
    3. Reducing the budget deficit for long term sustainability

    The Board also revised the district’s Theory of Action for Change to guide the strategies that will refocus us on the instructional core.  At its August 24 meeting, the Board of Education adopted Resolution 2414 that issued guidelines on budget reductions to right-size the district and authorized staff to present a tiered list of at least $15 million in reductions in December.

    Teams at every school have revisited priorities and strategies. The Superintendent’s Budget Advisory Committee convened in November to review plans and evaluate various impacts on students and make recommendations for funding priorities. The Committee, which included students, teachers, principals, employees, parents, district managers, and community members, presented its recommendations on Jan. 25, 2018

    In February, the Board of Education adopted a Fiscal Stabilization Plan of $6.9 million in estimated savings, reductions (including $2.47 million in central office cuts) and new revenue for 2017-2018, and over $12 million in reductions for the 2018-2019 school year. These reductions are detailed in the Fiscal Stabilization Plan adopted February 8, 2018.  Reductions for 2018-2019 include the implementation of staffing ratios previously negotiated with our labor partners. With these actions, the district’s 2017-2018 Second Interim Report was adopted with a “qualified” certification that returns us to fiscal stability.

    We have made great progress in addressing our budget shortfall, but there is more work ahead. Statewide, large increases in pension and health care costs are expected to continue, Special Education remains underfunded despite federal mandates, and state funding is expected to remain flat. If nothing changes in the way we are funded, by 2019-20, our District is projected to make further reductions of approximately $8 million in 2019-20. Additional reductions will also need to be made to maintain solvency in 2020-21 and our District’s 2018-19 budget adoption this June will include those discussions.

    The fiscal situation we’re facing is a challenge and an opportunity for the PUSD team to work together on addressing the root causes of systemic issues - and to make fundamental and sustainable changes that ultimately benefit students and our community.

    April 26, 2018 Message from the Superintendent Español
    March 16 Message from the Superintendent Español
    Feb. 5, 2018 Message from the Superintendent  Español
    Message from the Superintendent Oct. 24, 2017 Español

    2018-2019 Budget Development Timeline

    June 2017

    2017-2018 Budget adopted with $5.7 million deficit. $10-12 million in budget reductions projected for 2018-2019 and 2019-2020

    August 2017

    Board of Education revises district’s Mission and Vision, Theory of Action for Change to refocus on instructional core. Board identifies three priority areas for 2017-2018.

    Sept. - Oct. 2017

    School teams conduct data and root cause analyses, identify priorities, and develop plans to implement strategies. Central district divisions do similar work

    Sept. - Oct.  2017

    Applications sought for Superintendent’s Budget Advisory Committee (SBAC)

    Nov. - Dec. 2017

    SBAC convenes to review plans and budgets

    Dec. 14, 2017

    Board of Education Update on Board of Education Resolution 2414

    Jan. 10, 2018

    Governor’s Budget 2018-2019 released

    Jan. 25, 2018

    SBAC recommendations presented to the Board of Education

    Feb. 2018

    Board of Education Adopts Fiscal Stabilization Plan

    March 2018

    Second Interim Budget Report

    May/June 2018

    2018-2019 Budget Adopted