Pasadena School Officials, State Budget Expert to Discuss Pandemic’s Impact on Education

Officials with the Pasadena Unified School District and Pasadena City College will take part in an online forum Thursday with a state budget consultant to delve into what economic effects the COVID-19 pandemic may have on the state’s education budget for K-12 schools and community colleges in the coming months and years.

State Assembly Budget Committee Chief Consultant Christian Griffith will share his insights on the issues at the meeting, to be held at 5 p.m. via Zoom by Pasadena Area Community College District Governing Board Member Sandra Chen Lau, alongside PUSDistrict Board of Education Member Michelle Richardson Bailey and La Canada Flintridge Unified School District Board of Education Member Caroline Que Anderson.

Griffith oversees the drafting of the state’s $156-billion budget, organizers said.

A report by the California Legislative Analyst’s Office last month found that the state’s economy, and that of the state’s schools, was in significantly better shape than feared just a few months ago.

A windfall of unexpected tax revenue wiped out a $54 billion deficit that was predicted during the summer and is now expected to turn into a $26 billion surplus for the coming year, the report states. But following the one-time injection of revenue, an increasing deficit is expected to reach $17 billion by 2025.

“The budget picture for schools and community colleges is more positive — the minimum funding level required by Proposition 98 (1988) is projected to grow more quickly than school and community college programs,” according to the LAO report. “A new statutory requirement to provide supplemental payments on top of the minimum level makes even more funding available for schools and community colleges but contributes to the state’s operating deficit.”

The outlook has gotten much better over the past six months, Lau said.

“What we’re seeing now is the budget revenue is actually looking better than what was projected in June, and so this is going to be a discussion about: ‘Well, what does that mean for the education budget and what does that look like?’” she said.

“Now is the time to get involved,” Lau said. “Parents and students need to be informed so they can advocate to their local board members and state legislators for the educational priorities in their respective communities.”

Under the current budget plan, nearly $13 billion in payments to K-12 schools and community colleges in the state would be delayed to the following year.

“These deferrals will result in Pasadena Area Community College District not receiving $25 million in apportionment until next year,” according to Lau. “The district will need to borrow cash needed to maintain programs. But state staff alluded to distributing the funds in February 2021.”

The LAO has recommended the state use the tax windfall to eliminate the deferments, she said. “The use of reserves is not necessary at this time.”

Bailey said PUSD did not expect to need to borrow any funds in the short term.

“All school districts, including Pasadena, lost funding through the elimination of the cost of living adjustment and have experienced cash deferrals of large amounts of their state funding in the current year. Pasadena has had sufficient cash reserves to cover the cash deferrals. However, we are concerned about the financial impact in future years,” she said.

“The district is not anticipating having to use reserves in the current year due to the fact that we have received additional CARES Act funding,” Bailey said. “However, once these funds are exhausted we will need to begin spending reserves or making reductions to offset lost funding.”

Lau pointed out that the manner in which schools received funding for the current school year was based on the prior year’s enrollment, in response to the pandemic.

“Schools are currently under an emergency provision that holds us harmless for our decline in enrollment,” she said. “If the decline holds in future years it will result in a budget shortfall. “

Those interested in taking part in the meeting were asked to RSVP via email to sandrachenlau.pcc@gmail.com, organizers said. A link to the Zoom meeting will be provided upon RSVP.