Staff outlines fiscal stabilization progress; $5M county request and Phase 2 reductions flagged
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Summary
District staff told the finance subcommittee the board approved Phase 1 of a fiscal stabilization plan in December, staff is seeking $5 million from Sonoma County to preserve expanded mental‑health services, and Phase 2 may include significant reductions such as cutting about 75% of school‑based therapists if backfill funding is not secured.
Staff reported to the Santa Rosa City Schools finance subcommittee on Jan. 5 that the board approved Phase 1 of a fiscal stabilization plan in December and that Phase 2 is under development.
Staff described an ongoing effort to identify areas where the district can preserve cash this year and to rebuild a structurally balanced budget going forward. They said the district has a cash‑flow safety net and does not expect to run out of cash in the current year, but that the district faces an ongoing $15,000,000 structural shortfall and must maintain a 3% reserve.
As part of Phase 2 planning, staff said they requested $5,000,000 from Sonoma County to continue mental‑health services expanded during wildfire recovery and the pandemic. Staff said President Kasten sent a follow‑up asking the county for a firm commitment by Jan. 28 so the district can determine whether those funds can be used to avoid planned reductions.
Staff also noted proposed personnel reductions would target positions added with one‑time funds; as an example they said a likely recommendation could reduce roughly 75% of school‑based therapists if no backfill is secured. Staff told the committee a special meeting on fiduciary priorities is expected Feb. 7 and that Phase 2 would come to the full board for action on Feb. 11.
Next steps: staff will continue outreach with county public‑health and community partners on the county funding request and return to the committee and board with a Phase 2 proposal and any recommended actions.
