08-22-25 Fiscal Stability Message
August 22, 2025
Message to the PUSD Community
August 22, 2025
Dear PUSD Community,
As we prepare for the upcoming Board of Education meeting on August 28, I want to share with you a clear and transparent update on the fiscal reality we are facing and the process we are undertaking to ensure long-term stability for our district.
PUSD must address a projected budget shortfall of approximately $30 million this year. This is a serious and urgent challenge, one that demands our full attention, collective resolve, and a commitment to make thoughtful, student-centered decisions.
Several factors have contributed to this deficit. The district’s costs are increasing substantially, including the cost of employee health benefits, utilities, and district property and liability insurance. At the same time, declining enrollment, driven by lower birth rates and the ongoing migration of families out of the San Gabriel Valley, has resulted in reduced state funding based on average daily attendance. These dual pressures, higher costs and lower revenue, have created a structural imbalance that we must address strategically and proactively.
Over the past months, we have launched a comprehensive Fiscal Stabilization Process to guide our efforts. These work streams will include a focus on:
Superintendent’s Budget Advisory Committee (SBAC)
Special Education Efficiencies
Grant Maximization
Central Office Reductions
Contracts and Procurement Review
Transportation Analysis
Asset Management Opportunities
Staffing and Vacancy Evaluations
Each of these areas will be rigorously reviewed for opportunities to streamline operations, eliminate inefficiencies, and protect resources closest to our students.
Our SBAC, comprising staff, community members, and other stakeholders, will play a key role in helping us prioritize reductions. Their work will culminate in a set of proposed options, categorized into three tiers based on the degree of impact on student learning and school operations. These categorized options will then be presented to the Board of Education. This thoughtful framework will help ensure that decisions are made transparently, equitably, and with input from across our community.
Key Dates Ahead:
September-October: SBAC and all workstreams will meet and analyze options.
November: Committees will complete recommendations, and reduction options will be presented to the Board.
December: The implementation process will begin, following Board approval.
This is not simply a budgeting exercise. It is a critical opportunity to reshape how we serve students sustainably and effectively. We are committed to maintaining our focus on equity, academic excellence, and the well-being of every student, and staff member while taking the necessary steps to bring our budget into alignment and preserve the fiscal health of PUSD.
This will require difficult decisions. And with transparency, collaboration, and a shared commitment to our students’ futures, and as with all our past challenges, I am confident that we will emerge stronger.
Thank you for your continued support, engagement, and partnership.
Sincerely,
Elizabeth Blanco, Ed.D.
Superintendent