Pasadena School Board Approves Budget Amid Financial Concerns

On Thursday, the Pasadena Unified School Board approved a $335.1 million budget for the 2024-25 school year and adopted a fiscal stabilization plan to address projected deficits.

The Board passed the budget, which projects $284 million in revenues against $335 million in expenditures. This represents a significant decrease in revenues, including a 61.3% reduction in federal funding and a 13.4% drop in other local revenue.

The approved fiscal stabilization plan outlines cuts over the next two years, including reducing spending on materials and contracted services. The plan is designed to address the district’s long-term financial challenges.

District officials attribute the budget pressures to declining enrollment, increased pension and special education costs, and the phase-out of one-time COVID-19 relief funds.

The 2024-25 budget projects average daily attendance of 12,597 students, down from 13,887 in the current year. Further declines are projected for subsequent years, with ADA estimated at 12,407 for 2025-26 and 12,223 for 2026-27.

Special education costs are projected to increase by $4 million next year to $49.6 million, adding to the district’s financial strain.

The approved budget maintains the district’s required 3% reserve for economic uncertainties. However, projections show reserves dropping to 3.34% by 2026-27 without additional cuts or new revenue.

The fiscal stabilization plan includes potential measures such as reducing certificated and classified staff through attrition, decreasing expenditures on books and supplies, and cutting services and operating expenses. The budget also shows a significant 63.5% decrease in capital outlay expenditures.

The budget documents indicate the district is considering a parcel tax and bond measure for the November ballot, though these potential revenues were not included in the budget projections.

The Board will receive quarterly budget updates throughout the year to monitor the district’s fiscal health and make adjustments as needed.