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Board receives stark budget warning: staff to refine cuts and convene fiscal task force
Summary
Chief business staff reported un-audited 2024-25 actuals showing lower unrestricted reserves and warned that the district faces a structural deficit driven by declining unitary tax revenue, expiring one-time state funds, rising pension costs and TK expansion; staff will meet unions and convene a fiscal sustainability task force and return recommendations this fall.
The San Luis Coastal Unified School District—board on Sept. 16 heard a detailed fiscal briefing from Chief Business Officer Mr. Pinkerton and un-audited financial results from district accounting staff, who said unrestricted general-fund reserves were about 4.98% (approximately $7.3 million) at the close of 2024-25 and that the district faces a structural deficit unless new revenue or reductions are adopted.
CBO Mr. Pinkerton told the board the district has seen a long-term drop in unitary tax receipts and the end of certain one-time state funds and noted sharply higher pension (STRS/PERS) and benefit rates that now add roughly 27% (PERS) or more in employer retirement costs for some employees. "We need to get our budget in line. We need to make the reductions we need to make," Pinkerton said, framing a timetable for union briefings and the creation of a fiscal sustainability task force to develop options.
Public comment pressed the board to pursue additional outside funding and legislative remedies. Parent Ben Liippard asked board members to seek site-specific budget detail and urged the district to press PG&E and state representatives to preserve or replace community mitigation revenue. "What I want to ask for is ... that you ask staff for detailed, site-specific budgets going forward this year," Liippard said during the public-comment period.
Staff described next steps: HR will finalize position-control data; the CBO will share a comprehensive personnel-cost spreadsheet with union representatives; the superintendent will form a task force with community members, fiscal experts and county-office representatives; and the board will consider recommended reductions in November with potential actions before the March 15 layoff-notice deadlines if needed. Finance staff also recommended continued legislative advocacy for TK funding and SB1090 or similar mitigation continuations but said they could not rely on uncertain future state or utility funding when building the multi-year projection.
The board approved routine financial items and the un-audited 2024-25 actuals in a separate vote, then directed staff to continue the budget process and community engagement.
