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District staff outline PERS, enrollment and special‑revenue pressures behind cuts
Summary
District staff told the committee rising PERS obligations, enrollment decline patterns and legally restricted special revenue funds are the primary drivers of the proposed cuts. Staff noted the district expects to apply limited special revenue to PERS and that transfers smooth large purchases.
Finance staff presented the budget context to the committee on May 13, explaining the structural pressures prompting proposed reductions.
Pete Bejarano described how PERS and changing student needs are affecting costs: the number of students with IEPs has more than doubled since 2021–22, raising special‑education expenses from about $5.1 million to $9.5 million last year. He explained that "of every $100 spent, $17 goes to PERS," and that PERS rate increases are expected to push payroll costs higher in coming years. Bejarano also clarified that many special revenue funds are legally restricted by grant terms and cannot be transferred to the general fund; the district expects to spend down over $6 million of limited special revenue to cover PERS expenses.
Staff reviewed reserve strategy: contingency ($2.5M likely to be used) and the Ending Fund Balance (EFB) as short‑term liquidity for unexpected issues. They also outlined the rationale for smoothing multi‑year purchases (technology, turf, maintenance) through transfers to avoid large year‑to‑year spikes in expenditures. Mr. Bejarano and other staff cautioned that one‑time restorations without multi‑year offsets could expose the district to deeper reductions later.
