Poway Unified weighs $10 million in ongoing budget cuts, district-office reorganization and possible staff notices

Poway Unified School District officials on Feb. 25 outlined a plan to pursue deep, early budget reductions to close a multi‑year unrestricted funding gap, while warning that personnel notices may be required by the statutory March 15 deadline.

At a special budget workshop, Mr. Dill, presenting updated second‑interim figures, told the Board of Trustees that the district’s earlier unrestricted deficit projection of $17.4 million had narrowed to about $13.6 million after updated revenue and expenditure assumptions, but that out‑year deficits would grow unless action is taken. He said a lower-than-expected cost‑of‑living adjustment (COLA) in the governor’s proposal reduced the district’s 2025–26 unrestricted revenue by roughly $2 million.

The district offered two scenarios to close the gap: a ‘‘10 + 3’’ model that would implement $10 million in ongoing reductions in 2025–26 and an additional $3 million ongoing in 2026–27, and a shallower initial cut with deeper reductions later. Mr. Dill framed the $10 million as an ongoing annual reduction, not a one‑time savings, and said the board’s choices now will determine whether the district’s certification status remains positive or becomes qualified in coming years.

Public commenters urged caution before cutting staff and essential services. Courtney Martin, president of the Powe School Employees Association, told trustees the union has pushed for a data‑driven review of contracted services and other expenditures and asked the board to "please ensure District management keeps their commitments to PSA prior to considering any cuts to PSA classified staff." A parent, Jennifer Guerras, urged restoring bus service after routes were reduced, saying, "the buses, the buses — it is so important," and described safety and logistical problems caused by the contraction of routes.

Superintendent Dr. Churchill previewed a district‑office reorganization aimed at streamlining leadership and reducing district‑office management positions; she said full details will be shared at the March 13 regular board meeting. Staff emphasized that personnel decisions have timing constraints: affected employees must be notified by March 15 if reductions will impact positions.

Board members broadly signaled preference for an early, aggressive approach to reductions so the district reaches structural balance sooner. Trustees stressed three conditions voiced during the discussion: treat $10 million as a minimum target, aim to return to a positive position by year three, and develop the second‑phase plan (the additional $3 million) within the next months. Multiple trustees said cuts should be strategic and avoid harming core classroom instruction, and they asked staff to prioritize collaboration with union partners on staffing ratios, class sizes and site budgets.

Staff also repeated cautions about non‑personnel options and funding assumptions: restricted fund carryovers can temporarily smooth the budget, but moving restricted dollars into the unrestricted column creates only one‑time relief and requires planning for future years; new revenue ideas such as Medicaid billing or transportation fees are possible but not reliable near‑term solutions; and some federal discretionary grant funding was recently cut midyear, forcing program adjustments.

Facilities needs — including aging HVAC systems and deferred maintenance — were raised as a risk to reserves. Staff said the district is using a CalSHAPE grant for some HVAC replacements but that those grant dollars are finite.

Next steps: trustees asked staff to return with specific recommendations at the March 13 board meeting; staff reminded the board that statutory notice obligations for impacted personnel fall on March 15, narrowing the window for decisions that would affect employees. The board recessed to closed session and said there were no reportable actions at adjournment.

Poway Unified will present a finalized second‑interim budget and more detailed budget‑by‑program papers in coming weeks, and trustees directed staff to refine the proposed savings plan and to continue working with labor groups and site leaders to minimize instructional impacts.