Santa Rosa board certifies negative budget outlook, approves first round of district‑office cuts amid public outcry

The Santa Rosa City Schools Board of Education on Dec. 10 adopted a negative first‑interim certification and approved a fiscal stabilization plan that directs immediate reductions in district‑office management positions and previews deeper cuts to come.

In a presentation to the board, finance lead Luz Gaceres said the district’s updated projections show it cannot meet its financial obligations without board action. "We are certifying ourselves as negative," Gaceres said, noting the change means the district will not be able to meet financial obligations over the next 18 months if it maintains the status quo.

The negative certification followed a 90‑minute presentation laying out cash and multi‑year projections, including $1.1 million in additional state revenue tied to a community‑schools grant, the transfer of roughly $400,000 from restricted to unrestricted balances to help reserves, and roughly $7 million of professional‑services and licensing expenditures under review for possible reductions. Gaceres and staff emphasized that some steps described are short‑term cash protections meant to avoid reaching insolvency and a county appointment of a fiscal adviser.

Trustees voted unanimously to accept the report with a negative certification after questions about federal funding, prior budget history and whether the district had ever adopted a negative certification before. "If we do nothing, this is where we end," Gaceres said as she showed projected fund‑balance declines in the multi‑year plan.

Shortly after, staff presented "Round 1" of fiscal stabilization solutions: $1.9 million in savings generated entirely from restructuring and reducing district‑office management positions. The plan preserves school‑site staffing levels for the coming year but shrinks central office management, reassigns certain functions and reallocates some responsibilities to elementary and secondary director roles. The plan also previews "Round 2" solutions in January and February and notes staff are working with the county office and the district’s auditor to ensure transfers and accounting steps are auditable.

Board action and debate

Trustees moved the fiscal stabilization plan to a vote after extended public comment and trustee Q&A about possible compliance and service impacts. Trustee De La Torre moved the motion to adopt the plan; Trustee Jenkins seconded. An amendment introduced by Trustee Medina to restore a separate multilingual‑services director (reducing total proposed cuts from nine to eight management positions) failed for lack of a second. On roll call, the stabilization plan passed 6‑1.

Public comment and union reaction

Union representatives, classified staff and dozens of parents, teachers and therapists pressed the board to find alternatives to cuts that would affect student‑facing mental‑health supports. The Santa Rosa classified employees’ union told the board the district “is in a negative financial position so severe that students' programs, services, and opportunities are now at direct risk,” and asked the board to "make the hard decisions now before the state makes them for us" and to preserve transparency about the proposed reductions (public comment during the meeting).

Teamsters shop steward Mike Stanford told the board his members lost camera access and remote access to facilities systems, slowing maintenance response: "We would like that access given back to us," he said. Numerous school‑based therapists and counselors said layoffs of School‑Based Therapists (SBTs), restorative specialists and elementary counselors would remove the district’s most accessible mental‑health safety net. "Students cannot learn when they’re not well," one school‑based therapist told the board.

Staff repeatedly emphasized the Board was voting on the "what" tonight — a structural plan to reduce district‑office management — while implementation details (the "how") such as revised job descriptions or operational realignments would be brought back to the board. Superintendent August and other administrators said the district intends to reassign functions and to bring updated job descriptions and staffing proposals in January.

What passed and what happens next

The board approved: - The 2025‑26 first interim report with a negative certification (unanimous roll‑call vote). - The fiscal stabilization plan (Round 1) that includes $1.9 million in district‑office management restructuring and reductions (vote 6‑1).

Staff said Round 2 solutions — to be presented in January — will include additional district‑office changes, transfers of eligible one‑time funds (staff cited about $8 million of potential one‑time fund balances) and more targeted operational reductions. FCMAT (Fiscal Crisis & Management Assistance Team) is preparing a fiscal health and risk analysis, and the county will decide by Dec. 15 whether to assign a fiscal adviser to the district.

Board members and staff repeatedly warned the stakes are high: running out of cash would trigger county appointment of a fiscal adviser with stay or rescind authority and could remove certain board responsibilities. Trustees who opposed aspects of the plan said they feared loss of operational capacity and potential harm to English learner and special‑education services if implementation is rushed or poorly managed.

The board asked staff to provide more implementation detail, updated job descriptions and assurances about compliance and operations before personnel actions are finalized. Meanwhile, parents, therapists, and unions pledged to continue pressing the district for alternatives and for transparency as the district proceeds to implement the stabilization plan.