Budget 2025-26

1. Why is the district making these budget cuts?

The Pasadena Unified School District (PUSD) is facing a pivotal moment. With declining enrollment, rising costs, and the expiration of one-time COVID relief funds, we are under immense financial strain. Without swift and decisive action, the deficit will continue to grow, undermining our efforts to maintain the district’s long-term financial stability.  If we do nothing and the district’s finances continue to deteriorate, eventually, the state will be required to step in and take action. Proactive measures are essential now to ensure a solid path for our district’s future so we can continue to deliver a high-quality education for all students.

2. How are you deciding which positions will be cut?

We understand the impact major budget decisions cause, particularly for our employees. To minimize disruption to schools, we are focusing the largest proportion of cuts at the central office to preserve more resources directly to support our classrooms.

Our staffing adjustments are part of a responsible fiscal stabilization plan aimed at preventing a $37 million shortfall from compounding. By acting now, we can avoid even deeper, more damaging cuts that could threaten the educational experience of our students, especially as we recover from the Eaton Fire.

3. Why are there more budget cuts this year when we just had them last year?

Last year’s budget reductions were part of a multi-year fiscal stabilization plan and included the loss of one-time COVID relief funding, which temporarily helped stabilize school budgets during the pandemic. However, ongoing declining enrollment, which has been further impacted by the fire, and rising costs continue to reduce the district’s funding, requiring additional budget adjustments to prevent a $37 million shortfall from growing

4. Can’t Measures R and EE be used to prevent layoffs?

Unfortunately, Measure R’s bond funds are restricted for infrastructure and facilities, while Measure EE and Measure J funds, though vital for operations, are not enough to cover the full extent of the current shortfall. These investments remain crucial to our efforts to rebuild and restore PUSD’s long-term financial future. Thanks to the generous support of our community and voters, Measure EE provides $5 million annually, and Measure J contributes about $10 million, significantly easing some of the financial strain. Without this vital assistance, our situation would be even more difficult. These investments are key to our ongoing efforts to rebuild and secure PUSD’s long-term financial future.

5. Who will be impacted by the layoffs?

Layoff decisions are governed by collective bargaining agreements and state law, with seniority playing a central role. While these guidelines ensure fairness and legality, they are deeply painful to implement. Approximately 151 full-time employee positions may be affected. We will continue to follow all legal protocols to notify affected employees and support them through this transition. We understand the emotional and professional toll that layoffs take on our employees, and we are committed to providing resources and support during this unprecedented time.

6. How will this impact students?

No matter the financial challenges we face, our commitment to students will not waver. We will continue to offer programs such as dual language, arts, and career technical education. We will preserve smaller class sizes in key grade levels, ensure experienced teachers remain in the classroom, and maintain critical services. Our priority is to minimize the impact on students’ education.

7. What support is available for employees affected by the layoffs?

We understand the emotional and professional toll that layoffs take on our employees, and we are committed to providing resources and support during this unprecedented time.

8. Is there any hope of rescinding the layoffs?

We will actively work to reduce or rescind layoff notices, as we successfully did last year

when we identified vacancies. However, given the scale of our ongoing financial

circumstances, it is unlikely we will be able to rescind as many positions as we did in 2024.

9. Is this happening only in PUSD?

No. PUSD is among many school districts in California facing the same challenges and making reductions.

10. How can the community stay informed and provide input?

Now, more than ever, we need the strength and understanding of our entire community. We urge our employees, families, and community members to stay informed and engaged. Attend Board of Education meetings, visit our website, and reach out with your questions and concerns. Your voice and engagement are vital as we navigate these difficult decisions together.

11. How much have utility costs increased over the past decade?

Statewide, utility costs have risen by nearly 200% over the past decade.

12. What is the increase in liability insurance costs?

Statewide, certain types of liability insurance have experienced a staggering increase of up to 700%.

13. How are federal policy and funding changes affecting our budget?

Potential shifts in federal policies and funding are creating uncertainty and introducing risk to the district’s budget.

14. How do the district’s current reserves compare to the Great Recession?

Statewide, district reserves are significantly higher than during the Great Recession, when reserves were only at 8%. Today, reserves stand at approximately 23 to 25%. However, reserves are deteriorating due to deficit spending, necessitating budget reductions.