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Poway Unified faces multi‑year budget gap; staff to present deficit‑reduction plan at February workshop
Summary
Finance staff told the board the governor’s proposed cost‑of‑living adjustments reduce expected revenue by about $2 million for the district and that staff project a multi‑year unrestricted deficit that will require multi‑million deficit reductions to protect required reserves; trustees scheduled a Feb. 6 workshop to review options.
District finance staff outlined the 2025–26 budget planning timeline and how the governor’s January proposal affects local projections.
At the Jan. 23 meeting, the district’s finance presentation noted the proposed statewide COLA was slightly lower than previously modeled, reducing the district’s revenue projection by roughly $2 million. Staff said a governor‑proposed discretionary block grant could bring new one‑time funding, but details and eligibility were uncertain and would be subject to legislative changes through May.
Using multi‑year projections, staff reported that the district’s unrestricted general fund currently shows an $18 million ending balance in the three‑year forecast, but an ongoing structural deficit remains on the unrestricted side. Mr. Magnuson (finance staff) said staff estimate a mid‑to‑high‑single‑digit‑million to low‑double‑digit‑million shortfall requiring deficit‑reduction measures to preserve a 2% reserve and maintain a positive certification with the county superintendent.
Trustees were given a timeline for developing deficit‑reduction steps: board budget workshop on Feb. 6, a preliminary plan by March 7 if staff recommend personnel notifications, and refinement through May before budget adoption in June. Board members emphasized the need to explain to the public the tradeoffs of any capital financing vs. general fund impacts.
No formal budget action was taken; the board directed staff to present prioritized deficit‑reduction options and financing scenarios at the workshop.
