“It started quietly, years before the numbers went red. Falling enrollments, rising costs, and expiring pandemic relief funds have culminated in a crisis situation for Pasadena Unified School District (PUSD).” In this situation, PUSD is faced with the necessity of slashing tens of millions of dollars from its budget or face losing control of the district altogether.
1. A Deficit Years in the Making
For this coming school year, PUSD is projected to operate at a deficit of $27 million. That is almost four times last year’s deficit when you exclude fire-related funds and costs. Over the three years, it is projected that PUSD will reduce spending by $83 million. Today, PUSD reaches 13% fewer students than it did ten years ago, and at least 90 students have left PUSD schools due to the Eaton Fire. Funding in California is based on average daily attendance. If PUSD has 13% fewer students than it had ten years ago, it will receive less state funding.
2. Conclusion of COVID Relief Cushion
Federal assistance during the pandemic had been covering up the severity of the deficit. PUSD had received some of the $23.4 billion of ESSER funds that were channeled to the state as a whole and utilized it for helping it retain its workforce and maintain programs. “The different funds that have come in have essentially buoyed or created a rising tide that has made it possible for the district to hold back cuts that it might otherwise have had to make,” said LACOE CFO David Hart.
3. State and County Oversight
“California legislation intentionally created the state oversight system in such a way that it keeps locally elected school governing bodies in control,” Beth Serrano explained. “School districts are required to turn in their budget and interim reports to demonstrate that they can fulfill their financial commitments for the current year and two years out,” Serrano continued. “So when concerns such as operating in the red arise, county offices are required to step in,” Octavio Castelo of LACOE added. If the district had to borrow money to function, it would go into receivership and “would lose its superintendant and governing board for potentially more than a decade,” Castelo said.
4. Painful Cuts Across Campuses
In November, the board of education unanimously voted to achieve $24.5 million in cuts that will come from school-based programs, central office, and contracts. Cuts include no changes to the Career Technical Education Program, lessening reductions in athletic programs, and eliminating dozens of jobs in library, counseling, bilingual aides, and administrative positions. Athletic programs face an overall 25% spending reduction, including consolidation of sports programs at District highs to preserve every sport in the district.
5. Special Education and Transportation on the Table
Aside from board members’ voted cuts, further “workstreams” include grants, special education, transportation, property management, and filling staffing gaps for an additional$3.5 million in savings. Families of students in special and English language programs are concerned about the potential loss of vital services due to budget cuts and the state trend of decreased enrollments.
6. The Eaton Fire’s Lingering Impact
Thousands of homes were destroyed in the January 2025 Eaton Fire. Fire-hit schools must contend with increased class sizes and mid-year transferences of teachers. A proposed moratorium on forced transferences and increased class sizes until 2028 for parents of five Northwest Pasadena schools was met with LACOE concerns that such caps could jeopardize fiscal stability and state takeover. “Situations like this are symptoms of the crisis that we’re in,” declared Trustee Scott Harden.
7. Shrinking Enrollment and Reshaping
Per state projections, California stands to lose between 40,000 and 60,000 students each year for the next decade, with steeper losses in counties that are home to higher numbers of underrepresented students. In PUSD, that means that when fewer students attend school, the district will receive less money and be forced to reduce staffing and programs. In this case, it can be seen that when PUSD loses students, it loses money and programs due to the reduction in student enrolment. In California, schools that receive fewer students face.
8. Managing Community Anxiety
Budget problems may also exacerbate stress for families and teachers. Strategies proposed for this situation include prioritizing communication, including parents in budget conversations, and keeping commitments to programs for students when and if possible. Community members can voice their concerns at budget advisory meetings or contact their board members on this issue.
9. The Narrow Path to Stability
FCMAT member Michael Fine believes that PUSD can be saved from receivership “if it makes very, very difficult changes” at this point in history. “They’ll be very painful changes. They’ll be changes that the community won’t like, but… it would be better than having to cross that line and having someone come in who doesn’t care about this community and making the same decisions anyway.” Cuts are slated to be put in action in December, layoffs in March, and the budget in July. “Pasadena will soon be faced with finding the right balance between fiscal responsibility and the values of education that its community cherishes in its schools. Options made at this point will determine whether the schools are in local control or in state-led recovery for an extended period of time.”
