Fire Insurance Money Swells Pasadena Unified Reserves, But Core Balance Keeps Shrinking

Pasadena Unified School District ended the 2025-26 fiscal year with $245.5 million in its unrestricted general fund, most of it tied to fire insurance proceeds, while its underlying operating balance declined for a third straight year, district financial records show.

Excluding fire-related revenue and spending, the unrestricted balance fell to $37.7 million from $41.2 million a year earlier, according to the district’s 2025-26 Unaudited Actuals report, scheduled to go before the Board of Education Thursday.

The district recorded $164.7 million in insurance proceeds during 2025-26, following $133.1 million in 2024-25, the report shows. Eaton Fire-related general fund spending totaled $67.5 million in 2024-25, and fire-related general fund spending totaled $22.5 million in 2025-26.

Without the fire-related items, the unrestricted general fund balance fell $3.6 million. That was an improvement from a $27.3 million decline in 2024-25 and smaller than the $13.9 million decline the district estimated.

The report also shows the district spent 50.52% of its current cost of education on classroom compensation, below the 55% that state law requires of unified districts. The shortfall totals $11.4 million, and the state form warns that “future apportionments may be affected.” The district did not claim an exemption in the filing.

Revenue included $5.2 million in parcel taxes, a line that showed no revenue in the three prior years, and $9.3 million in interest, up from $4.6 million in 2024-25.

Unrestricted spending, including fire-related costs, totaled $193.7 million, $39.7 million below the district’s estimate. Spending on professional services and operating expenditures came in $32.8 million under projections.

The 2026-27 budget in the report calls for $467.1 million in general fund spending against $307.1 million in revenue. The general fund balance would fall $161.2 million, to $122.8 million from $284 million, and the unassigned balance would drop to $74.5 million from $234.8 million.

Budgeted spending on services and operating expenses more than doubles, to $187.4 million, while certificated salaries decline 6%, to $96.1 million.

Average daily attendance was 12,347 in 2025-26, and the district budgets for 11,975 in 2026-27.

Special education required a $48.1 million contribution from the general fund, down from $49.7 million in 2024-25 but up from $35.8 million in 2022-23.

The district’s bond building fund took in $300 million during the year, $250 million under Measure O and $50 million under Measure R, leaving it with $303.4 million.