Newport-Mesa studies savings to shore up reserves and narrows ELOP summer-school sites

Newport-Mesa Unified School District leaders presented a first‑interim budget projection showing a one‑year gap and a plan to rebuild reserves above a 17% target, and they asked the board for direction on possible savings and program priorities.

Staff presenter Jeff Trader said the district is “projected to spend more than we receive in revenue” this year but showed a multi‑year forecast that brings revenues above expenditures by 2027–28 under current assumptions. He told trustees the district could pursue savings through attrition, reduced consultant spending and tighter travel and materials budgets to improve reserve levels.

Why it matters: Trustees heard that one‑time pandemic relief—about $90 million—was largely spent on staffing, creating ongoing general‑fund pressure. Staff said roughly 72% of that one‑time money (about $66 million) went to personnel costs that persist in the baseline budget, complicating efforts to fund capital projects or expand summer programs without drawing from reserves.

What staff proposed and the board response Staff identified several specific levers for savings: not replacing some positions through natural attrition (a potential roughly $3 million), trimming materials and supplies by 5% (about $1.2 million),…