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Trustees at the Pleasanton Unified School District are set to hear the latest news on the district’s finances in a presentation at their next meeting Thursday evening.
The second interim budget report for the fiscal year shows a rosier outlook than its predecessor, following budgetary adjustments, but projections for the future remain uncertain, as districts throughout the state continue to rely heavily on one-time funding sources, which are also part of the governor’s proposed state budget for 2022-23.
The report includes information on adjustments for the second interim, revenues and expenditures, as well as assumptions and projections for the district’s future finances. Projections take into account changes in cost of living, which is expected to continue increasing, as well as changes in enrollment, which is expected to continue decreasing.
Overall, the update shows a healthier outlook for the district than the first interim report did, with a $1.79 million net increase in revenue and a $2.32 million net decrease in expenditures. However, projections suggest that enrollment is expected to decline, and call for continued cuts to expenses. Additionally, the report points to variables in the governor’s proposed budget, set to be revised in May, which could increase or decrease projections for future revenue.
The district’s finances have been bolstered with a total of more than $24 million since the onset of the pandemic in March 2020 from one-time state and federal sources. This includes more than $9 million from the Expanded Learning Opportunities grant (ELOG) and more than $5.2 million of In-Person Grant funding. Of the former, more than $5.3 million had been spent by Jan. 31, a majority of which was on student support, followed by counseling and health. Of the latter, more than 74% of the under $3.8 million spent by Jan. 31 was for general education and salaries.
Staff increased by nearly 15 full-time equivalent (FTE) positions in the second interim compared to the first, a majority of which are funded from one-time sources. While the district continues to have more than 40 vacancies, staffing is expected to decrease overall, in line with enrollment, in the next several years, with the next budget aimed at cutting staffing and salary costs by roughly $3.25 million.
A further challenge posed by the state budget proposed thus far is that unlike the previous budget, it does not include relief for pension costs, which are projected to rise by more than $2 million by 2024 for the district.
Although finances have improved since the first interim, the second interim report notes that the district is still in deficit spending, despite the deficit decreasing from the more than $7.5 million projected for fiscal year 2021-22, to $4.5 million.
Staff are recommending that the board approve the first interim report with a positive certification, and approve the projections in the second interim report as the revised operating budget for the present year.
The district is due to approve the final budget for the upcoming fiscal year in June, following the release of the revised governor’s budget proposal in May.
The Pleasanton Unified School District’s next regular meeting is set for Thursday(March 10) at 5 p.m. The agenda is available here.
In other business
* As part of a routine personnel document on the consent agenda, the board is poised to approve the administrative resignations of Kenneth Goeken, senior director of special education, and Shay Galletti, director of elementary education.
* Staff are recommending that the board appoint Doug Miller to the Citizens Bond Oversight Committee.
* The board and staff are set to review a fifth draft map scenario of adjusted trustee-area boundaries, which was produced following discussions at the board’s Feb. 24 meeting. In addition, the first of the earlier four maps has been removed from consideration.
Trustees and staff will now compare and contrast the new map alongside three options that have been previously up for review, before reviewing the final options at their March 24 meeting. The last meeting on Feb. 24 marked the fourth required public hearing in the district’s shift from at-large to by-trustee area elections.
* The Classified School Employees Association and PUSD will present reopener proposals in order to initiate negotiations for the 2020 to 2021 school year. In addition to reopening negotiations on salary and benefits, the union proposes reopening negotiations on leaves of absence, seeking to formally incorporate language previously agreed upon, as well as compensation and salary step increases.
* Trustees are set to discuss the possibility of returning to fully in-person meetings.
* Trustees and staff will hold a board governance workshop, in which they will review sections on communication and community in the Board Governance Handbook, as well as by-laws on public statements, disclosure of privileged and confidential information, and board member electronic communications.
It’s telling that a few months ago, when they were in contract negotiations with teachers, the district leadership claimed the long-term financial outlook was so dire they simply could not pay teachers what they were asking for, but now that an agreement has been reached all of a sudden the outlook is rosier and they have money to spare. This is quite deliberate.