Sunnyvale board approves 2025–26 budget 'positive certification' amid $11M structural gap

The Sunnyvale School District board voted unanimously March 12 to approve the district's 2025'26 second interim budget and the associated "positive certification" for submission to the Santa Clara County superintendent of schools.

District finance staff told trustees the budget shows the district is stable for the coming year but cautioned that structural pressures remain. "When we ended last year, we saw that we were facing a structural deficit of roughly $11,000,000," the budget presenter said, adding that the district has lost nearly 1,000 students since before the pandemic and has used attrition and vacancy management to close about half the gap this year.

The presentation outlined revenue assumptions baked into the plan, including a 1% property tax growth scenario worth about $1.1 million, and noted that one-time revenues have helped close short-term shortfalls. Staff said the district captured roughly 26 positions this year through attrition and expects to capture additional positions next year, with a forecast that voluntary early retirements will increase certainty.

Trustees asked for clarification about assumptions and contingencies. "This is based on current conditions," the superintendent said, noting that if economic conditions worsen staff would return with alternative recommendations. Trustees and union leaders discussed voluntary options to avoid layoffs; Sunnyvale Education Association President Wendy Smith praised the district's effort to seek non‑layoff approaches and highlighted an early retirement incentive under consideration.

The board approved the motion to accept the budget and submit the positive certification by voice vote with no opposition. Staff said further action remains necessary to address the multi‑year structural gap and that the district will continue monitoring revenues, enrollment and cost drivers.