Pasadena School Board Hears Grim Budget Forecast

The Pasadena Unified School District (PUSD), already battered by years of budget struggles, heard a particularly grim budget forecast from its chief business officer at its board meeting Thursday.

According to Dr. Leslie Barnes, total state revenues are now down by more than $41.2 billion, which translates into an $18 billion hit to the State’s education budget. California’s Proposition 98 requires a minimum percentage of the state budget to be spent on K-12 education, and guarantees an annual increase in education funding.

In terms of a cost of living increase in state funding to the District, Barnes  projected a “best case” scenario of “0 to -10 %” change, after two years of a 3.26% increase.

PUSD Board President Patrick Cahalan said “The State has given us an impossible job.”

A more detailed version of the budget will be discussed at the Board’s May 28 meeting.

In her presentation to the board, Barnes said that the District is awaiting $267,885 in COVID-19 relief funds from SB117. The district has also applied for, and is awaiting, a FEMA case manager to handle its pandemic-related costs, currently at $3.6 million and “growing.”

Additional funding sources would be available, however, to support distance learning systems,  Health/Safety/Supplies, as well as access and support for student groups facing barriers, said Barnes.

The State’s response to the COVID-19 Pandemic would also provide funding from the Governor’s Emergency Education Relief act, which is competitive, and the Elementary & Secondary Emergency Relief Fund (ESSER), which could provide an estimated $4.6 million.

Significantly the state could freeze the District’s Average Daily Attendance (ADA) figures at their Feb 29, 2020 counts for the next two years,  or use enrollment figures to calculate District funding, instead of ADA. District funding is generally based on ADA numbers.

The District’s number of instructional days could also be reduced from 180 to 175 statewide.

The state may also reduce or suspend the required 3% routine restricted

Maintenance transfer, and reduce or suspend the required Reserve for Economic Uncertainty (REU) over the next few years, said Barnes.

The state may also provide relief for the next two years for increases in STRS, which is a teachers’ pension fund, and PERS, which is a pension fund for classified employees.

The 2020-21 PUSD budget is required to be adopted by June 30, 2020. Calahan noted, however, that the State will likely not finalize its budget until August. Barnes added that the District may need to revise its budget again once after the State budget is signed.

Cahalan also pointed out that the Governor is using a “V-shaped” recession to describe the State’s current financial status, meaning a rapid steep drop, “followed by a quick recovery,” once the pandemic crisis has run its course.