Pasadena School Board Approves Interim Budget

The PUSD Board of Education unanimously passed the certification of its interim budget on Thursday.

The projection includes about $250 million in restricted and unrestricted spending this fiscal year.

But several board members expressed concerns that the budget did not paint a realistic picture due to missing projections and one-time COVID-19 relief funds 

“We need to be honest and I think we need to include the salary increases in the narrative. It seems like we’re making

it secondary,” said Michelle Richardson Bailey. “We are going too long without prioritizing our workforce.” 

The zero raises guarantees the positive certification, but it could present an unrealistic budget going forward.

In the past the district included salary increases in the budget even though they were negotiating with employees at the time.

“This has been a unique year,” said Chief Human Resources Officer Dr. Steve Miller. “In our negotiations we transitioned from negotiating in arrears and negotiating in the future. The pandemic has changed all that. It has changed the negotiations.” 

The district will also get $7 million from a three-quarter sales tax passed last year. 

“Our positive certification is based on zero raises for all three years and I don’t think that is realistic,” said Board Member Kim Kenne.

Kenne also expressed concerns about one-time payments from the CARES act and enrollment figures. 

The budget also contains $19 million in one-time funding from COVID-19 relief funds which the district is stretching out those funds for as many years as possible. That money is not based on revenue, which makes it look like the district is spending less funds than it did in previous years. 

“We’ve got all this one-time money, and it’s coming into our budget in one place, restricted and we are spending it in another place, unrestricted,” Kenne said. “It is making this year not look like other years. It looks like the district is spending less than we really are because it’s not revenue.
“These figures are going to throw comparisons off in coming years. I feel like maybe we need to put an asterisk on some of the numbers to say they are not the same apples. There are some apricots in there also.” 

Funding this year and next year will be based on last year’s enrollment, on which state funding is based, without attendance factored in due to legislation passed because of the coronavirus. 

That model has some board members worried about 2022-2023. In 2023 the budget is based on a decline of 725, but according to the current declining rate of enrollment, the district is on track to lose 900 students which could result in massive layoffs and possible school closures. 

“It concerns me that in [2023] we are not using the decline of the full 900 students, but 725 students,” Kenne said. “I feel like our multi-year projection should be based on that.”

Gov. Gavin Newsom is scheduled to submit a revised budget in January. 

“Not knowing if we are going to get a budget reduction, it’s a little scary to put anything in,” said Chief Business Officer Dr. Leslie Barnes.