La Cañada Unified board directs staff to implement $1.9 million in budget cuts, votes 5-0

The La Cañada Unified School District Governing Board voted 5-0 on a motion to direct district staff to implement $1,900,000 in budget reductions aimed at addressing a projected structural deficit and preserving required reserve levels.

Superintendent Wendy told the board during a special meeting that district staff had identified $1.9 million in recommended cuts after a month of review, and that the changes were intended to “address the structural deficit and provide for some other things” so the district would not present an uncertified budget. Melissa, the district’s budget presenter, told the board that without reductions the district would have to issue a negative certification to the county for 2025–26.

The cuts staff recommended and the board directed include a mix of programmatic and staffing changes: trimming materials and supplies ($200,000), reducing contracted services ($200,000 targeted), suspending one elementary SAGE therapy contract (savings estimated at $100,000–$150,000), eliminating one administrative 1.0 FTE, small master-schedule efficiencies at the 7–12 level, a $60,000 reduction tied to ninth-grade English/math sections (about three course sections), a reduction in 7–8 GATE services, suspension of the elementary third–sixth grade Spanish pullout program (about $172,000), and raising district elementary class size caps to contract maximums (proposal: 5 FTE reduction districtwide, estimated savings about $600,000). Staff also proposed reductions to the Responsive Teaching Plan (RTP) staffing and paraprofessional hours and some technology, maintenance and office staffing adjustments. Deborah (human-resources lead) said the district would seek to meet the reductions through attrition and reassignments where possible rather than immediate layoffs.

Board discussion emphasized timing and legal deadlines: staff repeatedly noted that March 15 is the statutory deadline to issue notices tied to potential reductions and that not placing options on the table by then would eliminate flexibility. Melissa said the second-interim report reflects the governor’s January proposal and warned that the May Revision could change state revenue assumptions; she and Wendy said the district needed options ready to preserve its ability to certify the budget for 2025–26.

The presentation summarized revenue and cost drivers behind the cuts: La Cañada’s revenue mix is heavily state dependent (about 68% state funding in the district’s calculations) with local revenue at roughly 17 percent and federal funding unusually low at about 2 percent (roughly $1 million). Staff said the district expects about $400,000 in additional parcel-tax revenue from Sagebrush only if that parcel conversion is finalized (targeted in July 2026). Lease income was cited as roughly $2.5 million per year; staff said they are pursuing a 5% annual tenant increase where feasible.

Staff highlighted rising mandatory costs that are squeezing the general fund: employer pension contributions (STRS at about 19.1% and PERS at about 28.2% reported by staff), increasing special-education encroachment (general-fund contribution was estimated at about $8,510,917 for 2024–25), health-and-welfare employer contributions of roughly $3,961,796 covering about 267 employees, and other inflationary pressures. Melissa said salaries and benefits make up about 79% of the general fund and that a 1% negotiated salary increase across all bargaining units would cost the district roughly $480,715.

Staff framed the recommendations as a way to both meet the board’s minimum reserve requirement (3% state minimum; board policy target 3.5%) and to preserve limited capacity to negotiate for an on-schedule salary increase at the bargaining table. The board adopted the motion directing staff to implement the reductions; the vote was recorded as 5–0 in favor. The board president confirmed the motion would be followed by formal second-interim budget and reduction-in-force (layoff-notice) items to return to the board at its next regular meeting.

Public commenters urged caution on specific cuts. LCTA President Mandy Redford asked the district to add benefit and work-year context to salary comparisons and said certificated members want to continue bargaining before decisions are finalized. Parent and community speakers pressed the board to prioritize wellness services and questioned the suspension of an elementary SAGE therapy contract; staff said campus-based counseling and wellness rooms would remain open and the change would suspend the contracted, clinic-style elementary therapy position while leaving school counselors and high-school SAGE services in place (7–12 wellness services would remain but staff discussed a potential 0.5 FTE reduction at 7–8 as an option). Another speaker asked whether giving or PTA/foundation targeting could replace ongoing costs; staff replied that one-time donations were limited as a structural fix and that parcel-tax or other ongoing revenue levers would require separate community campaigns and, in the case of a parcel tax, a two-thirds voter threshold.

Wendy and Melissa said staff would continue to refine the reductions, meet with affected employees and bargaining units, and return with formal items (second-interim budget and layoff-resolution language) on the next agenda. Staff stressed that some reductions could be rescinded later if state revenue projections improve or if bargaining produces alternate solutions.

Votes at a glance: Motion — “Direct staff to implement the reductions as presented.” Outcome — approved. Vote tally — 5 yes, 0 no. No individual mover or seconder was named on the transcript; the motion passed by roll call as recorded by the board president.