Superintendent

March 7, 2024

Subject: IMPORTANT BUDGET UPDATE FOR ALL PUSD STAFF

Dear Team PUSD,

I want to take a moment to share some important information regarding our district's financial situation. As many of you may already be aware, based on current fiscal projections, PUSD is facing its largest budget deficit since the Great Recession (2008): a $28 million shortfall that we will need to address over the next two years, with a minimum of $15 million in budget solutions required for the 2024-25 school year.

This challenging financial landscape is a result of the State budget circumstance, which includes a projected $73 billion shortfall and an unprecedented reduction in the Prop 98 Guarantee for education funding. Factors such as the sunsetting of COVID pandemic relief, anemic Cost of Living Adjustment, declining enrollment, lower attendance rates, and increasing operating costs have all contributed to an ongoing, multi-year structural deficit for PUSD. Many school districts across the state will face similar challenges. You may have seen, just yesterday, it was announced that a neighboring school district will be issuing pink slips to over 200 employees.

While the fiscal situation is quite serious and requires imminent attention, I want to assure you that we are navigating this challenging moment in a thoughtful manner. Thanks to the keen foresight of our school board and the business support services division, PUSD is better positioned to respond to this challenge than many other school districts in the region. No permanent PUSD employees will face layoffs for the coming year. As part of this initial budget review process, we are beginning to have conversations with the leadership of PFT, PSEA, and APSM on how best to approach the budget reduction process for the 2024-25 school year. We are all in agreement: we hope to make cuts as far away from the classroom as possible. We are actively exploring a number of budget solution ideas that include freezing vacant management positions, reducing departmental budgets, reimagining programs all while being responsive to the priorities you helped establish through our recent Thoughtexchange survey. It is crucial that we all understand the significance of this challenge and work together to navigate it with patience, creativity, collaboration, and a proactive mindset.

While we are not in a unique situation, what is unique is that we have some of the very best people committed to serving our students and community. Your strong sense of purpose and remarkable willingness to go above and beyond is on full display daily. Your dedication and resilience in the face of challenges are what truly set us apart and give me hope for the future. As the rumors begin to swirl, and they will, please assume good intentions. If you hear something that is particularly concerning, please reach out to me directly.

I encourage you all to stay informed by tuning into the Board meetings and keeping an eye out for budget updates as we learn more at the state level and proceed with building the 2024-25 budget. Your input and innovative ideas are invaluable as we strive to minimize the negative impact on our staff, programs, and organization. If you have any suggestions you’d like to share, you can do so via Thoughtexchange here.

Please know that your support and positive efforts to keep student learning at the forefront of our daily activities are deeply appreciated. Our school board and leadership team will do everything we can to minimize the impact of cuts coming. While the road ahead may not be easy, I am confident that by working together and taking good care of each other, we will successfully navigate this fiscal crisis.

On behalf of our students and their families, thank you for your hard work and dedication. You matter, and in moments like these, you make all the difference.

Sincerely,

Greg Mizel

Interim Superintendent