You may have seen reports about California school districts facing difficult budgetary decisions. Like many across the state, SUSD is making adjustments as we plan for the upcoming year.

Each March, districts complete a required “Second Interim” financial report. The Board reviews updated revenue, expenses, enrollment, and funding projections and makes any necessary budget adjustments for the next year. We must also submit a three-year financial projection showing we can maintain a positive ending fund balance each year to remain fiscally solvent.

With the expiration of one-time COVID federal funds, as well as overall increased costs, like numerous other districts across the county and state, SUSD can not meet required reserve levels by 2028-2029 without making reductions. To address this structural deficit, where ongoing expenses exceed ongoing revenues, we must implement a Fiscal Recovery Plan.

Budget planning is especially challenging because staffing/programming decisions must be made before final state revenues and enrollment figures are confirmed. 

To proactively address these challenges, the Board voted to issue preliminary layoff notices to align staffing with projected enrollment and begin reducing deficit spending. State law requires districts to issue these notices to certificated and classified staff by March 15 if layoffs are necessary for the following school year. Because this deadline comes before final funding and enrollment numbers are confirmed, districts must act cautiously and proactively.

Over the next three months, we will actively engage with our community partners to gather input and identify creative solutions that help mitigate the overall impact on students and staff while still addressing our budgetary responsibilities. We value the expertise within our community and believe collaboration will strengthen our path forward.

We understand that budget reductions can be stressful. Please know these initial decisions were made to minimize the impact on classroom instruction. Acting now helps us avoid more significant cuts in the future. As we continue this work, we will post updates to our website under District Budgets, including the most recent Second Interim presentation. 

Our commitment to providing a high-quality education and supportive school environment remains strong. We are grateful for your continued support as we navigate these financial challenges together.

In Partnership,

Sara Gramm