Latest Budget Updates
Budget Timeline and Updates
This page will be where the latest updates and notes from budget items, discussions, and decisions will go. Please check back regularly. Use the triangles on the right to expand each section of updates.
May 6, 2025: Special Board Meeting
Staff provided an update on the district’s budget development. A key development shared was the finalization of the statutory Cost of Living Adjustment (COLA), which unfortunately came in lower than originally projected. When applied to the Local Control Funding Formula (LCFF), this adjustment could reduce anticipated district revenue by approximately $500,000.
The district continues in its budget deficit reduction planning. All district departments have been tasked with implementing non-personnel budget reductions. It is important to note that site budgets will not be affected by these reductions.
District leadership will continue to monitor developments in the state budget closely. The next key milestone in the budget development process is the Governor’s May Revision, followed by the release of the district’s budget in June.
In response to budgetary reductions indicated at the state level and the impact of declining enrollment, on March 13, 2025, the Governing Board of the Poway Unified School District adopted Resolution No. 58-2025 and Resolution No. 57-2025 to eliminate and/or reduce the number of certificated and classified employees due to a reduction in particular kinds of services, lack of work, and/or lack of funds for the 2025-2026 school year. The board approved both resolutions with the amendment of removing the Student Services Assistant position from the list. Affected employees received notice on or before March 15, 2025. The resolutions can be viewed below.
April 10, 2025: Board Meeting
The district is currently in the budget development process and has incorporated $10 million in reductions into its financial assumptions. Department heads are reviewing materials, supplies, services, and contracts to identify redundancies and reduce spending. This information has been shared with the Poway Federation of Teachers, Poway School Employees Association, and Association of Poway School Managers.
Looking ahead, the district anticipates continued adjustments next year, including enrollment growth in transitional kindergarten (TK) and a decline in K–12 enrollment. The district is closely monitoring state and federal developments that impact funding. The Governor’s May Revision, expected May 15, could present risks—particularly if the statutory Cost of Living Adjustment (COLA) is lower than projected or not fully funded. It’s important to note that while COLA reflects inflation, it doesn’t guarantee the state has the resources to fund it fully each year.
March 13, 2025: Board Meeting
District Management Reorganization - Phase 1
Superintendent Churchill presented a reorganization of the district office management structure. Key components of this restructure include targeted position reductions, strategic additions and modifications, and a focus on student achievement and belonging.
The proposed restructure includes reducing from five divisions to three divisions. To accomplish this there will be a net reduction of 10 management positions. The complete presentation can be viewed at this link.
Resolutions to Decrease the Number of Poway Unified Employees
In response to budgetary reductions indicated at the state level and the impact of declining enrollment, the District must prepare for the reduction and/or elimination of classified and certificated positions at the end of the current school year, ensuring the District’s long-term fiscal health, and District program needs. The board approved this resolution, which identifies positions to be eliminated due to a lack of work and/or lack of funds for the 2025-2026 school year.
The following documents list the positions approved by the Board to be reduced or eliminated.
Additionally, a resolution was reviewed and approved to define the criteria determining the order of seniority for employees with the same date of first paid service. This will be the system used to determine which individuals the above resolutions affect. You can view this resolution here.
Second Interim Financial Report
The Board heard a presentation on the Second Interim Financial Report, reflecting the approved operating budget based on the First Interim and actual revenues and expenditures (approved at the December 17, 2024 Board Meeting). In addition, the presentation included the district’s 24-25 projected budget and multi-year projections, prepared with the most current fiscal and economic information. The Board reviewed and approved two resolutions presented during this presentation.
You can review the presentation and the resolutions here.
February 25, 2025: Budget Workshop with the Board
In this second Board Budget Workshop the Board was presented with a budget update, enrollment projections, and potential budget reduction strategies. Staff shared that the budget deficit reduction process is designed to identify strategic cuts that allow future financial flexibility. The Board reached consensus, based on currently available information, to identify a target of $10 million in reductions to be implemented in the 2025-26 school year, and then an additional $3 million in ongoing reductions will be considered in 2026-27. Strategies for deficit reduction include: 1) personnel reductions, 2) non-personnel reductions, and 3) exploring additional sources of revenue.
February 6, 2025: Budget Workshop with the Board
The Business Services Support Division presented current and projected figures, including enrollment trends and attendance rates, program budgets, and revenue and expense projections. The board also reviewed various scenarios showing different timelines for deficit reduction and discussed their priorities for addressing the deficit. The goal of the workshop was to provide critical information needed to develop a budget deficit reduction plan. No decisions were made nor were any reductions proposed.
The full report is available online here, and a recording of the workshop can be viewed at this link.
The full report is available online here, and a recording of the workshop can be viewed at this link.
January 23, 2025: Board Meeting
Interim Associate Superintendent Greg Magnuson spoke about the development of the budget, current challenges, and PUSD’s next steps toward fiscal stability. This process includes developing accurate projections, ensuring adequate reserves, and taking actions to reduce budget deficits.
Previously, the district had committed to a $12.5 million deficit reduction for the 2024-2025 school year. So far, 90% of that reduction plan has been realized. For the 2025-2026 school year, the district is considering up to a $13 million deficit reduction. The most recent state budget proposal showed a reduction in funding from the state, including a reduction in the Cost of Living Adjustment (COLA) which fell from 2.93% to 2.43%.
Mr. Magnuson shared that it is a critical time to be able to make these deficit reductions. Doing so allows PUSD to stay ahead of more severe deficits in light of the current economic climate. The Board of Education will engage in a Budget Workshop to begin exploring options for deficit reduction on Thursday, February 6, 2025, at 4:00 p.m. in the District Office Community Room.