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), reducing travel/conference spending by 25% (about $375,000) and cutting consultant use by about 5% (about $900,000). Trader also highlighted an example he said could save about $500,000 by reorganizing maintenance and operations and shifting some contracted work in‑house.

Trustees broadly supported exploring internal capacity and targeted reductions but warned against cuts that would directly affect instruction or routine maintenance. Trustee McElroy said the board should avoid reducing routine maintenance after years of deferred maintenance that have drawn complaints and litigation; another trustee stressed that classroom supplies should be protected.

Capital and project funding Trustees pressed staff about Fund 40, which pays for capital projects and summer facilities work. Staff said Fund 40 had little to no current balance and that previous public renderings and project plans were shown without secured funding, which led to community frustration. The facilities master plan contains substantially higher estimated needs, and trustees asked for a clear, prioritized list of funded projects and timelines rather than unbudgeted renderings.

Pandemic relief and carryover Trader summarized one‑time pandemic allocations, noting that the district used most of those funds for staffing to address learning loss and recovery. “We received a large amount of one‑time money from pandemic relief … it was about $90,000,000,” he said, adding staff would continue to report on carryover and the impact on ongoing costs.

Summer school and ELOP priorities Because carryover for the Expanded Learning Opportunities Program (ELOP) is depleted, staff recommended operating summer school at three title‑1/ELOP sites—Wilson, Whittier and College Park—instead of four. Under ELOP rules staff described, priority enrollment would go first to unduplicated pupils (UPP: foster youth, low‑income and English learners), then to other eligible students, and a wait list could be required for non‑priority students.

That proposal prompted trustees to press for equitable access. Several trustees asked staff to pursue at least one Newport‑side or southwest site, explore AM‑only academic models with paid afternoon enrichment, and examine transportation options (ELOP funds can be used to transport UPP students). Trustee Weigand asked for more data on how many non‑title‑1 students used summer school in previous years to assess equity impacts.

Votes and procedural notes At the start of the session the board adopted the special‑meeting agenda; Trustee Crane moved and Trustee Pearson seconded the motion, and the roll call vote approved the agenda. No other formal votes were recorded in this study session.

What comes next Staff will return with second‑interim numbers next month, further breakdowns of consultant and overtime spending, details on TOSA staffing levels and the internal list of funded versus unfunded capital projects (Fund 40/17). Trustees asked staff to model options for a Newport‑side summer site, AM‑only academic offerings, transportation scenarios for UPP students and further analysis of opportunities to bring work in‑house to reduce consultant costs.

Quotations “My name is Jeremy Lohr, the student board member from Early College High School,” said Jeremy Lohr during public comment, urging attention to local field closures, internet access and tutoring supports. Trader told the board, “we're projected to spend more than we receive in revenue,” and later quantified the one‑time pandemic funds: “it was about $90,000,000.”

The next procedural step: staff will incorporate trustees’ direction into follow‑up materials for second interim and return with more granular analyses on consultant reductions, operations reorganization and summer‑school site/transportation options.