Santa Rosa City Schools faces multimillion‑dollar shortfall; board orders layered cash, budget steps

Santa Rosa — Santa Rosa City Schools leaders told the school board on Nov. 12 that a pre‑first interim budget shows the district could end June with negative cash unless the board and staff implement layered one‑time and ongoing solutions, prompting trustees and hundreds of public commenters to demand clearer numbers and outside help.

Superintendent Lisa August and interim business leaders said the district’s updated cash‑flow projection shows a projected June shortfall of about $2.8 million under currently planned actions and a much larger negative scenario — more than $16 million — if no corrective measures are adopted. Interim Associate Superintendent L. Cazeres told trustees the district is treating cash preservation and reserve replenishment as distinct tasks that must be addressed now while structural changes (to eliminate an ongoing deficit estimated in the low‑to‑mid‑teens of millions) will require additional board actions in December and February.

The pre‑first interim presentation, led by Cazeres and fiscal staff, listed immediate tools staff are pursuing: maximizing restricted funding that can be encumbered but not yet spent, limiting supplemental pay, pausing discretionary contracts where feasible, auditing software/license spend, restructuring the district office and targeting school‑site staffing changes. Staff also said they are using FCMAT (the state Fiscal Crisis and Management Assistance Team) and other advisors for technical assistance.

Why it matters: trustees and members of the public warned that delay or an incomplete plan could lead to state receiverhip, which would transfer control of local finances to an outside administrator. Parents, teachers and union leaders at the meeting urged the board to prioritize cuts away from classroom instruction and to bring in outside experts — including CTA, School Services of California and FCMAT — to produce a detailed plan.

Unions and staff: Union leaders framed the crisis as a management problem. Mike Stanford of Teamsters Local 665 asked the board to “audit the personal spending” of top administrators and said cabinet members should be held accountable. Katherine Howell, president of the Santa Rosa Teachers Association, said the district is in a “$22 million hole” and pleaded for a clear plan and regular reporting.

Trustee questions: Trustees pressed staff on three central drivers: rising special‑education costs, negotiated salary increases that outpaced added revenue, and persistent enrollment declines (the district reports roughly 12,000 students this year, down from earlier counts). Cazeres said special‑education costs are a core challenge and staff are using a special‑education efficiency tool to identify opportunities without cutting legally required services.

Public demand for transparency and help: More than two hours of public comment focused on school closures and the budget. Many speakers said they want the district to cut “services and other operating expenditures” — a budget category the public said runs far above county peers — and to reduce district‑office overhead rather than classroom positions. Several union speakers urged formal, rapid engagement with outside fiscal experts.

Votes and next steps: The board approved routine consent items and several contracts after discussion. Staff said a first round of recommended reductions and cash‑protection steps will come to the board at the Dec. 10 meeting; a second round of structural recommendations is scheduled for the board’s first meeting in February. Cazeres told the board the county office will review the district’s fiscal stabilization plan in mid‑December and may assign a fiscal advisor.

Alternative education note: Separately, the board received an overview of alternative‑education options, including independent study. Independent‑study teachers described weekly contact rules and a hybrid approach that lets many students remain connected to home campuses for activities while doing coursework with district staff.

What’s next: The district will present a package of immediate cash‑protection actions at the Dec. 10 meeting and a broader set of structural budget changes in February. Trustees and community leaders said they expect detailed line‑by‑line proposals and urged staff to solicit and share outside analyses as part of that package.