Seaside SD warns of PERS side-account exhaustion; staff propose $2.4 million in reductions

Superintendent Susan Penrod told the board that a PERS side account purchased years ago is expiring sooner than expected and that the district must prepare for sizeable employer cost increases. “The side account was meant to last until December 2027, and it is running out in March 2027,” Susan said, explaining that the district bought the side account years ago (about a $10 million bond) and realized roughly $4 million in savings over the bond’s life.

Susan and finance staff said the district is projecting a PERS-driven shortfall of about $2.0 million this year and presented a set of reductions that together would be approximately $2.4 million. Proposed actions include $90,000 in professional-development savings, delaying a new English-language curriculum adoption, deferring a bus purchase (~$200,000), sharing a transitions teacher across districts (~$90,000), reducing 3.0 licensed FTE through attrition, reducing about 3.375 classified FTE (non‑classroom roles), and modest use of general-fund reserves while keeping a 10% ending fund balance.

Board members urged caution about delaying purchases and drawing reserves; they asked staff to prepare multiple budget options for the budget committee and to clarify the timing and cash flow implications. Tony (speaker 16) provided interim finance figures, reporting a December 2025 rate credit near $1.3 million and anticipated side-account contributions around $1.1 million for December 2026. Staff emphasized that final reimbursement timing for federal grants and exact PERS charges remain uncertain; they plan to return with more granular options to the budget committee.