Board approves 2025–26 budget but rejects immediate fiscal‑stability resolution

The Sunnyvale School District Board approved the district—s 2025–26 budget after a presentation showing weakening property-tax assumptions and a structural deficit that would erode reserves without changes. Arthur Duffy, the district—s chief business officer, warned that recent large assessment appeals and cooling commercial values mean the district may need to reduce a projected deficit by roughly $7.7 million by 2026–27 to protect its local 20% reserve target.

Duffy told the board that "there's a lot of risk" in the revenue picture, citing active assessment appeals by large local taxpayers and a falling market for commercial property. Trustees discussed an advisory Equity and Sustainable Staffing Committee and whether the board should direct immediate reductions. Trustee discussion focused on transparency, the committee—s membership, and the fact that a new superintendent is arriving in July. A motion to adopt Resolution R-25-29 (which would have charged the superintendent to present a comprehensive list of reductions and solutions) was defeated in a voice vote after board members requested more time and documentation. The chair said staff should return with meeting minutes and materials for the incoming superintendent to review.

Board members voted separately to adopt the 2025–26 budget so the district meets statutory deadlines; several trustees emphasized the need to use natural attrition, collaborate with labor partners and prioritize equity in any staffing adjustments. The board directed staff to continue work, provide committee meeting minutes and present suggested options for the next financial update.