Board adopts 2025'26 budget, approves fiscal stabilization plan calling for $13M then $25M in reductions
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Summary
Trustees adopted the proposed 2025'26 budget that meets the minimum reserve and approved a fiscal stabilization resolution requiring immediate planning for $13 million in reductions next year and $25 million the following year to address a multiyear shortfall.
The East Side Union High School District board on Tuesday adopted the 2025'26 budget and approved a fiscal stabilization plan that relies on $13 million in reductions in 2026'27 and an additional $25 million in 2027'28 to stabilize the district's finances.
Why it matters: Trustees and staff said the district has one year of runway to correct a projected multiyear deficit; without corrective action, officials warned the district would not meet its financial obligations after the 2025'26 fiscal year.
Associate Superintendent Tom Nguyen presented the proposed 2025'26 budget and told the board the presentation reflected the most recent state budget information available. Board members noted the May revision reduced an anticipated $7 million in potential state funds to roughly $2.5 million, narrowing the margin of optimism staff had discussed previously.
The board voted to adopt the 2025'26 budget (item 8.07) and then unanimously approved Resolution 2024'25'4 (item 8.08), the district fiscal stabilization plan, which sets target reductions and requires staff to produce a detailed plan for the county when the district files its first interim report. Glenn Vanderzee, the superintendent, described the contingency as necessary to obtain county conditional approval of the budget and to preserve financial solvency.
Board members asked for further detail on which programmatic and personnel changes would constitute the $13 million reduction; staff said they will present a more detailed position-by-position plan at the September audit and in the first interim report. Trustees emphasized they expected the administration to pursue all feasible revenue opportunities while also developing prioritized cuts.
Actions taken: The board adopted the 2025'26 budget and adopted a resolution authorizing the fiscal stabilization plan that calls for $13 million in reductions next year and $25 million the following year. The district will file the resolution and plan with the county office as part of its budget submission.
Context and constraints: Trustees and administrators pointed to long'running state funding challenges, the reduced Cost-of'Living Adjustment (COLA) in the most recent state proposals, and declining enrollment as drivers of the shortfall. Staff said precise program-level impacts had not yet been determined and that some proposed reductions will hinge on collective bargaining and legal processes.
Next steps: Staff must submit a detailed fiscal solvency plan to the county office after district audit actuals are posted in September and before the first interim report. The board asked administration to prioritize transparency with stakeholders while continuing to explore legislative solutions, including coordination on Senate Bill 743, which trustees discussed as relevant to statewide school funding equity.
