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Hacienda La Puente board approves fiscal stabilization plan to close a projected $3.7M gap
Summary
Trustees approved a three‑year fiscal stabilization plan to address a projected $3.7 million unallocated expenditure in 2027–28, relying on refined enrollment projections, a discretionary grant assumption, staff alignment, contract reductions and potential early‑retirement savings; trustees requested executive summaries on COP refinancing and large contracts.
The Hacienda La Puente Unified School District board on Wednesday approved a three‑year fiscal stabilization plan that staff said will bring the district into the recommended reserves range while addressing a projected $3.7 million unallocated expenditure in fiscal year 2027–28.
"As part of the approval of the district's 25–26 adopted budget, the Los Angeles County Office of Education required the submission of a fiscal stabilization plan, identifying revenue enhancements and expenditure reductions to address a projected $3,700,000 unallocated expenditure in 27–28," said Blanca Risco, who presented the plan to trustees.
The plan combines several measures: a downward revision in projected enrollment declines (from 500 to 350 students per year) that staff said will generate about $4 million in adjusted revenue over the latter two years of the projection; an assumed $4.5 million student support and professional development discretionary grant in 25–26; salary savings from vacant positions (about $2 million per year); contract reductions and operational savings and a potential early retirement incentive that staff estimated could yield $3.8 million in savings over two years.
Risco emphasized the plan does not assume settled collective bargaining agreements: "This plan does not include a tentative agreement." Trustees pressed staff for more detail on district debt refinancing and reserve implications, specifically asking for a breakdown of certificate of participation (COP) balances, current interest payments, and estimated savings from refinancing.
Following discussion and questions, the board voted to approve the fiscal stabilization plan; one trustee recorded an abstention during roll call.
Why it matters: The plan is the district’s framework to meet Los Angeles County Office of Education expectations and to stabilize finances after an earlier fiscal health risk analysis identified deficit pressures. The measures will affect staffing and long‑term district budgeting and require follow‑up work on debt strategy and the specifics of any retirement incentive.
What’s next: Trustees directed staff to provide executive summaries and financial breakdowns—particularly COP outstanding balances, interest obligations, and refinancing scenarios—before moving forward on debt actions or any incentive detail that would rely on negotiated agreements.
