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County flags Pajaro Valley budget risks as CBO lays out multi‑year shortfall
Summary
Pajaro Valley Unified's chief business officer told the board the district faces declining enrollment, rising health-benefit costs and a structural deficit driven in part by one‑time ESSER-funded positions; the county's budget review letter urges corrective steps to avoid state intervention.
The Pajaro Valley Unified School District’s chief business officer presented a fiscal briefing Tuesday that laid out a worsening multi-year picture and cited a county Office of Education letter warning of potential qualification for state oversight if the district does not adjust its spending.
Gerardo, the district’s CBO, told the board the district’s general‑fund projections show a drawdown of reserves across the next three years driven primarily by declining enrollment and higher statutory benefit costs. He said the district has lost roughly 300 students since the COVID period — a drop he estimated translates to approximately $50 million in revenue — and that an elevated portion of current staffing was originally funded with one‑time federal ESSER funds.
Public commenters pressed the administration for data and questioned some of the county‑office framing. “Using estimated actuals rather than audited figures can overstate the gap,” said speaker Brandon Heath, and other speakers asked for line‑item transparency on consultant spending and the number and pay levels of roles funded temporarily by ESSER grants. Gerardo and trustees explained the distinction between restricted grant funds — which must be spent on specific programs — and unrestricted funds that pay ongoing salaries and benefits.
Trustees said the presentation was intended as an early public warning and to mobilize community input on difficult choices. Trustee Navarro described the county letter as a firm notification that the district must plan reductions or increase local revenue to avoid being characterized as fiscally “qualified,” a status that would reduce local control. The CBO said staff will return with reduction recommendations and that the district intends to engage the public in planning and prioritization.
What’s next: The district plans to continue community outreach, post answers to district financial questions online, and prepare reduction scenarios and a monitoring calendar to present to the board. Trustees said they will weigh options that prioritize student services and minimize harm to classrooms.
