09-15-25 Next Step: Budget Process
September 15, 2025
PUSD Community Message
Next Steps in PUSD’s Ongoing Budget Process
September 15, 2025
Dear PUSD Community,
We want to provide an important update on the next step in our district’s ongoing budget process and financial oversight. On Thursday, September 11, the PUSD Board of Education reviewed and certified the Unaudited Actuals Financial Report for the 2024-2025 fiscal year, a state-mandated annual filing required under California Education Code.
This report provides the most complete financial picture of the school year that ended on June 30, 2025. It captures the actual revenues and expenditures across all district funds and sets the foundation for formal oversight and planning by the State of California, the Los Angeles County Office of Education, and our district as we begin a new fiscal year. The report also establishes our certified ending fund balance and confirms the district’s overall compliance with state funding and accounting requirements.
While all funds ended the year with a positive balance and met state compliance thresholds, the financial data reinforces what we’ve been communicating with transparency: PUSD is facing a structural deficit that must be addressed strategically, collaboratively, and urgently.
We are sharing a few key takeaways from the 2024-25 Unaudited Actuals Financial Report:
With fire-related revenue and expenditures included, the General Fund shows an operating surplus of $38.2 million, and an ending balance of $106.8 million.
Excluding the one-time fire-related revenue and costs, however, the district operated at a deficit of $29.3 million, a significant increase from the $7.4 million deficit in 2023-24.
The General Fund’s unrestricted ending balance, excluding fire-related items, stands at $39.2 million, which is $29.3 million lower than the prior year.
This context is critical as we continue to forecast ongoing annual shortfalls exceeding $30 million. Multiple factors are contributing to this challenge, including:
A lower-than-expected state Cost of Living Adjustment.
Declining student enrollment and reduced Average Daily Attendance.
State budget volatility tied to economic conditions, tariffs, and federal fiscal policies.
Increasing costs across employee benefits, insurance, and utilities.
In response, we are moving forward with bold and necessary actions to restore long-term fiscal stability. Through our Fiscal Stabilization Process, we are applying a performance-based budgeting approach, prioritizing strategies that are not only cost-effective, but aligned with our mission to support student learning and equity.
The Superintendent’s Budget Advisory Committee (SBAC), composed of parents, students, educators, and community members, continues to play a vital role in this work. Their analysis and recommendations will guide the Board’s decisions about reductions and investments for the 2026-2027 school year.
Upcoming Key Milestones:
September-October: SBAC and other fiscal workstreams continue their in-depth review.
November: Recommendations and reduction options presented to the Board for their approval.
December: Launch of the implementation phase.
The certification of the Unaudited Actuals is more than a compliance step, it is a moment of clarity and accountability. It places our financial position formally on the record and signals the need for urgent action to realign our budget with our values, priorities, and available resources.
We remain fully committed to open communication, sound stewardship, and student-centered decision-making.
Thank you, as always, for your partnership and commitment to PUSD’s future.
Sincerely,
Helen Chan Hill, Ed.D.
Chief Academic Officer
Saman Bravo-Karimi
Chief Business Officer