School Board Approves Budget Hours From Deadline

Just hours away from what Board Member Elizabeth Pomeroy called “Fiscal New Year’s Eve,” the Pasadena Unified School District Board of Education unanimously approved the District’s 2021-22 Fiscal Year budget.

The new fiscal year begins Thursday, July 1.

Introducing her presentation to the Board, PUSD Chief Business Officer Leslie Barnes acknowledged that while the budget is the product of months of work by PUSD staff, it will need to be revised again in October, after Governor Gavin Newsom presents his “trailer” budget.

On Monday the State Assembly sent CA SB129 (21R), known as the “budget bill junior,” to Newsom, along with “trailer” bills that add more cash payments for middle-class Californians as part of a Golden State Stimulus II package The additional bills also  overhaul the state’s handling of hazardous waste.

These “trailer bills” have yet to reach the governor’s desk and, if approved, would be signed during summer.

Which means the budget will be looked at yet again.

Barnes told the Board: “The budget that we’re adopting tonight is no longer valid, which is kind of how it happened last year, too. It’s a lot of work to do absolutely nothing.”

But, added Barnes, “We’ll go to a workshop on July 14th and that will tell us much more detail.”

The new budget as approved pays down a series of district deferrals and also launches the universal schools meal program, said Barnes.

“Right now we’re providing breakfast and lunch to all students for free and California would be the first state to do that throughout the state,” she said.

Board Member Kimberly Kenne, in introducing the motion to approve the budget, said, “We build our adopted budget by saying, well, this is how much more next year is going to cost. So we look at our estimated actuals, and then we say, well, next year is going to be this. But then if our estimate and actuals go down later, we’ve kind of built that inflation into our going forward budget, which we don’t correct until the following June again.”

According to Kenne, the amount in flux is usually between $3 and $6 million.

Kenne moved to approve the budget on the condition that PUSD staff brings back to the board an updated budget version in early- to mid-October “that will show the additional state revenue that’s just being approved by the state now as part of the budget.”

According to a staff report, the district plans to spend $266.5 million, of which about $213.4 million is tied to actions and services in the annual LCAP  (Local Control Accountability Plan), and $53.07 million is not included.

The Unrestricted General Fund expenditures for 2021-22 are projected at $145 million, according to a preview document.  Approximately 82% of those expenses are earmarked to cover the salaries and benefits of employees, including teachers and support service providers.

Salaries and benefits are projected based on established staffing ratios and board-approved positions. In addition, budget allocations are provided to each school site on a per-student basis to cover operational costs.

While the board will revisit the budget in October, according to PUSD Board President Scott Phelps, there is also a September 30 deadline to submit a plan for the use of COVID relief-related funds that the District has received.