Apple Valley Unified board approves layoffs and budget authorizations amid sharp debate over borrowing

Apple Valley Unified School District trustees voted on multiple budget-related measures in a contentious May meeting that included approvals of certificated and classified layoffs and authorization to participate in short-term borrowing mechanisms.

The board approved Resolution 2526-16 to terminate certain certificated positions and Resolution 2526-17 to terminate classified positions after extended questions about which lines were vacant and how many staff would be affected. Trustee Longshore, who pressed repeatedly for transparency during the discussion, warned the cuts would be painful: “I see you,” she said, describing the human impact and noting the packet showed 19 classified layoffs, with 13 employees losing hours and insurance and others facing reductions in days or moves to different roles.

Superintendent Nelson and district staff answered detailed questions about specific positions and funding sources. Staff said some eliminated roles were vacant and others would be reestablished under categorical funding such as the Learning Recovery Emergency Block Grant (LREBG), community-school grants and Title I when permitted. For several positions district staff said funding would be split between restricted and unrestricted sources (examples cited included ELOP and Title I) and that some warehouse and family‑center roles would be funded by grant terms.

The board then debated whether to adopt a resolution (2526-13) authorizing participation in the California cash reserve program and issuance of tax- and revenue‑anticipation notes (TRs) for up to $25 million. Staff described the TR as a contingency tool: districts are included in the pool only if a cash‑flow analysis shows a need, and there is no interest cost unless funds are drawn. Trustees split on the wisdom of continued short‑term borrowing. Several members, including Trustee Apara, urged the board to reduce reliance on high‑interest borrowing and to focus on structural spending changes; Trustee Apara pointed out the district’s audited non‑voter‑approved liabilities rose substantially in the prior year and said the board must do more to live within its means.

District staff and auditors explained components that increased the audit’s non‑voter‑approved debt figure: compensated‑absence liabilities (affected by new GASB accounting for sick‑leave accruals), early‑retirement PARs, recent private‑placement debt and lease obligations. Staff emphasized that compensated‑absences are an accounting liability reflecting accrued leave, not an immediate cash outlay.

Trustees approved the TR‑authorization resolution by roll call (three in favor, two opposed) and separately adopted a resolution authorizing temporary interfund borrowing for FY 2026–27, which staff said allows internal cash transfers (the less‑expensive option) to cover payroll and other timing gaps while interim financial reports provide oversight.

Votes at a glance: • Resolution 2526‑16 (certificated terminations): approved (roll call; 4 yes, 0 no, 1 abstain). • Resolution 2526‑17 (classified terminations): approved (roll call; 4 yes, 0 no, 1 abstain). • Resolution 2526‑13 (TR participation): approved (roll call; 3 yes, 2 no). • Resolution 2526‑18 (temporary interfund borrowing): approved (roll call; 4 yes, 1 no).

Trustees repeatedly asked for more detailed, timely information—how many vacant positions were budgeted, how many classified positions remained after the cuts, and how personnel moves affected insurance and hours. Superintendent Nelson and business‑office staff said they would provide the requested breakdowns and that interfund transfers and any TR participation would be disclosed in budget financial reports and interim filings to the board.

The meeting’s debate underscored a persistent split among trustees: some prioritized avoiding cash crises and keeping payroll funded using available tools, while others argued the board must tighten spending and stop normalizing repeated borrowing.

What’s next: staff will provide the requested line‑item clarifications and a cash‑flow analysis if the district considers drawing on a TR; the board directed staff to continue reporting transfers and interim financial statements for oversight.