PUSD Budget Updates & Engagement
PUSD is committed to open communication and community engagement as we work to address an anticipated $8-9 million* budget shortfall in the 2026-27 school year. This page provides all budget-related information in one place - including FAQs, meeting dates, presentation materials, and engagement opportunities.
Learn about our Budget Challenges
For anyone just beginning to follow PUSD’s budget discussion, we strongly encourage reviewing the resources below. They explain how we got here, what reductions have already been made, and the steps ahead as the District works to address its structural deficit and achieve a balanced budget through 2027-28.
Budget FAQs – A list of questions and answers, updated regularly.
We’ve also turned our original FAQs from Fall 2025 into a short, 5-minute podcast that highlights the key questions, making it easier to listen on the go and stay informed.
A 4-slide summary of PUSD’s Fiscal Challenges.
Summary of PUSD's Fiscal Challenges
Want the full story? Check-out the video recording of our virtual Town Hall (60 mins) or review the Town Hall presentation slide deck.
Raise the Base - How Our Community Can Help
Addressing these fiscal challenges involves both local action and ongoing advocacy for adequate school funding at the state level. As part of this effort, PUSD has joined the statewide Raise the Base coalition to advocate for updates to California’s school funding formula, the Local Control Funding Formula (LCFF). Under the LCFF, districts like ours receive significantly less base funding per student than many others — despite our high Bay Area costs. Through this effort, we are advocating to increase funding for all students while bringing more state education tax dollars back to our schools. Community voice matters. We encourage families to learn more, sign the petition, contact our state legislators - Assemblymember and Senator - and continue generously supporting our school programs through Pleasanton Partnerships in Education Foundation (PPIE), as well as our PTAs/PFCs and booster organizations.
Reporting from Budget Board Meetings
April 16 REgular board meeting
Budget Reductions, MOU, and Rescission Direction
At the April 16 meeting, the Board approved a Memorandum of Understanding (MOU) with the California School Employees Association (CSEA), in which CSEA agreed to $909,850 in negotiated budget reductions, including adjustments to the work year calendars for certain classified positions and the elimination of two professional development days. The resulting savings enabled the Board to direct staff to rescind preliminary layoff notices for select positions on the contingency reduction list established earlier this year: District Parent Liaison (1.75 FTE), Child Welfare and Attendance Specialist (2.625 FTE), Elementary Library/Media Assistant II (2.1875 FTE), and Reading Intervention Support Specialist (3.75 FTE).
Separate from these MOU-supported rescissions, the district secured targeted grant funding, which enabled the rescinding of certificated layoff notices for District Social Worker positions (1.8 FTE). The Board also directed staff to continue rescinding layoff notices as funding becomes available, including potential savings from ongoing negotiations with the Association of Pleasanton Teachers (APT), funding from Pleasanton Partners in Education (PPIE), or additional grants.
MARCH 26 REGULAR BOARD MEETING
Fiscal Health Risk Analysis Report
The Board received an overview of the independent Fiscal Health Risk Analysis conducted by the state’s Fiscal Crisis and Management Assistance Team (FCMAT) following the district’s negative budget certification. The report, presented by Chief Analyst Tami Montero, confirms that the district continues to face financial pressure driven by structural deficits, declining enrollment, rising personnel and special education costs, and the expiration of one-time funding sources. It also identifies key areas of fiscal risk related to maintaining adequate reserves, leadership stability and governance, and budget and position control practices. The analysis notes that the district has taken significant corrective actions, including Board-approved budget reductions and strengthened financial oversight. The report emphasizes that fully implementing these approved reductions will be critical to maintaining the district’s financial stability and remaining solvent. Looking ahead, long-term fiscal health will also require careful management of spending, stabilization of enrollment, and development of additional ongoing revenue sources.
👉 View the FCMAT Report
Revenue Generation Efforts and Dashboard
Trustees reviewed current local revenue sources and additional strategies to support long-term financial sustainability. The district is projected to generate approximately $9.9 million in 2025–26 from a range of local sources, including lease revenue, facility use fees, community partnerships, before and after-school programs such as Kids Club, grants, and donations. Staff is actively pursuing additional revenue-generating opportunities that could yield approximately $7.1 million to $10.6 million in ongoing revenue over time, including continuing to expand Kids Club, supporting TK/K enrollment, further monetizing district real estate, and exploring a potential parcel tax as a long-term local funding option; however, many of these strategies will take time to implement and require additional approvals and do not replace the need for the expenditure reductions already underway.
👉 View the Revenue Generation Presentation
March 12 Regular Board Meeting
Second Interim Budget Update
At the March 12 Board meeting, the Board received its second formal financial update for the 2025–26 school year (Second Interim Budget Report), which includes actual expenditures through January 31, along with revised projections for the remainder of the school year. Consistent with the first budget update provided in December, the report highlights the fiscal challenges the district has faced this year as expenses continue to outpace revenues, resulting in a projected negative ending fund balance and Negative Certification status, which requires additional oversight from the Alameda County Office of Education. Compared with the December projection, the Second Interim Report shows a modest decline in the ending fund balance from negative $2.5 million to negative $3.4 million (about a 0.35% variance relative to projected total expenditures of roughly $232 million). Staff noted that careful monitoring of spending for the remainder of the year may help improve the final year-end balance.
As reported previously, the Board has approved a multi-year $11.2 million reduction plan to address the district’s structural deficit, which is primarily driven by constrained state funding, declining student enrollment, and rising operational costs. While the district has utilized one-time funds from property sales to maintain stabilization reserves, these funds cannot be used to address ongoing operating shortfalls.
The approved reduction plan focuses primarily on staffing reductions, because salary and benefit costs account for over 85% of total district expenditures and limit flexibility in other areas of the budget. Following through on these reductions is essential to restoring long-term fiscal stability by better aligning ongoing revenues and expenditures and supporting a modest net fund balance improvement by 2027–28. Moving forward, the district will continue to identify savings and actively pursue opportunities to strengthen revenues in order to rebuild its required 3% reserve and sustain high-quality educational programs for students.
In her Message from the Board, Trustee Carreon acknowledged, “Decisions like this are never taken lightly.” She also noted, “One of the core responsibilities of the Board of Trustees is to ensure the long-term fiscal health of the district. We are required to make decisions that keep the district financially solvent so that we can continue to serve students not only this year, but for many years to come.”
The district will continue to provide regular updates to the community as budget planning progresses. At the same time, PUSD will advance advocacy efforts at the state level for more adequate and stable school funding.
👉 View the Second Interim Budget Presentation
FEBRUARY 26 special board meeting
At the February 26 Board Meeting, the Board of Trustees approved Reduction in Force (RIF) Resolutions for certain certificated and classified staff for the 2026-27 school year.
As previously shared, the RIF Resolutions authorize the issuance of preliminary layoff notices in order to meet the March 15 statutory deadline. These RIF Resolutions include all additional approved staffing reductions from the February 19 Board meeting, as well as reductions to certain grant-funded positions and reductions related to adjustments to staffing allocation ratios previously approved in the fall and currently under negotiation.
As the fiscal picture becomes clearer through ongoing negotiations and the availability of additional revenue, including the potential restoration of certain grant funding, preliminary layoff notices may be rescinded where reductions are no longer necessary.
👉 View the RIFs for certain certificated and classified staff
In her Message from the Board, Vice President Walker shared, “As PUSD continues to navigate through tumultuous waters to address our complex resource-limited situation, we must continue to work together to share information and understand different perspectives, in order to identify and achieve mutual gains for our teachers, classified staff, parents, and families, with the intentional goal to benefit every PUSD student. We, collectively as a PUSD community, must remain united and proactive to achieve long-lasting fiscal sustainability.”
👉 Watch the Feb 26 meeting recording
FEBRUARY 19 special board meeting
At the February 19 Special Board Meeting, the Board of Trustees continued its contingency budget planning for 2026/27.
As previously shared, PUSD continues to face significant fiscal challenges due to declining enrollment, the expiration of one-time pandemic-era funding, rising operational costs, and comparatively low per-student funding. Following extensive community engagement in fall 2025, the Board approved $11.2 million in reductions for 2026/27 to address a structural deficit and rebalance the budget. As confirmed by Alameda County Office of Education-appointed Fiscal Expert Kate Lane, failure to implement the reductions could not only jeopardize the District’s ability to meet its financial obligations but also result in increased fiscal oversight by the county or state, limiting local decision-making authority.
Of the $11.2 million approved in November, $5.4 million is currently under negotiation with labor partners. While negotiations continue in good faith, the Board must also prepare contingency plans to ensure the full reduction target can be achieved and to meet the March 15 statutory deadline for issuing preliminary layoff notices for the 2026/27 school year.
As part of this contingency planning, the Board revisited the reduction options identified through the fall 2025 prioritization process but did not move forward at that time - specifically those weighted “3” as most impactful under the Board’s ranking system - totaling approximately $5.02 million. The Board approved these additional reductions and directed staff to prepare Reduction in Force (RIF) resolutions, which authorize the issuance of preliminary certificated and classified layoff notices as part of the contingency plan. The Board also established a prioritization order to guide potential rescissions of layoff notices should negotiated reductions or additional revenues reduce the need for staffing impacts.
Trustees acknowledged the difficulty and weight of the decisions before them and emphasized that their action was not a reflection of the value they place on the important work educators and staff do each day for students. Trustees also noted that, while negotiations remain ongoing, the Board is required to act in accordance with statutory timelines and fulfill its fiduciary responsibility to manage district finances, ensure fiscal solvency, and avoid increased county or state oversight.
👉 View the February 19 meeting presentation
👉 Watch the meeting recording
👉 View the summary reduction and rescinding order spreadsheet
FEBRUARY 12 Regular board meeting
At the February 12 Board meeting, staff reviewed ongoing reduction efforts and remaining processes for the 2026/27 school year, as well as received an update and report from ACOE-appointed Fiscal Expert Kate Lane.
We invite our community to watch the February 12 Board presentation. Alameda County Office of Education–appointed Fiscal Expert Kate Lane’s report begins at 27:50 and provides an important, independent perspective on the district’s fiscal outlook and next steps.
Actions to date
PUSD is facing significant financial challenges driven by declining enrollment, rising costs, loss of pandemic-era funding, and comparatively low per-student revenue (LCFF). Despite more than $16 million in reductions and $4.3 million in new local revenue over the past two years, the district continues to experience structural deficit spending that has reduced reserves. As a result, the 2025/26 First Interim Budget carries a Negative Certification, meaning the district may not meet its financial obligations without additional action. Following extensive community engagement in fall 2025, the Board identified $11.2 million in reductions for 2026/27, of which about $5.4 million requires negotiations with labor partners, which are currently underway.
Fiscal Expert Perspective
The Board also received a report from Fiscal Expert Kate Lane, who is working alongside the district to support fiscal stabilization and maintain local decision-making. She affirmed the significant work already underway but underscored the urgency of fully implementing the Board’s approved reductions. Ms. Lane noted that the district is projecting a negative unrestricted fund balance, creating cash-flow pressure, and that even with planned reductions, ongoing enrollment decline will require continued fiscal discipline. She further emphasized that if insufficient action is taken locally, escalating levels of county and state fiscal oversight may occur, which could limit local decision-making. She also stressed the importance of rebuilding district reserves over time to restore fiscal resilience and provide a stronger financial safety net.
Next Steps
While negotiations with labor partners continue, the Board must also prepare contingency plans to meet statutory timelines for preliminary layoff notices by March 15, 2026. As stated by Trustees at multiple Board meetings last fall and in recent weeks, this includes reviewing reduction options previously identified — but not moved forward — through the fall 2025 prioritization process, specifically those weighted “3,”. Those items were ranked as having the most significant impact based on the Board’s ranking system, and will need to be prioritized to ensure required savings targets are met. The prioritization will also help guide the order in which any potential layoff notices could be rescinded before the final layoff notice deadline of May 15, should negotiated reductions reduce the need for staffing impacts. A Special Board Meeting will be held on Thursday, February 19 at 6:00 p.m. to continue this work. The agenda and participation details have been posted in Simbli, and presentation materials will be available by 5:00 p.m. on Wednesday, February 18.
JANUARY 22 SPECIAL BOARD MEETING
At the January 22 Special Board Meeting, the Board reviewed updated enrollment projections and the District’s financial condition.
Declining enrollment and TK outreach efforts
PUSD currently serves 13,000 students, down nearly 2,000 from a peak of 15,000, with a further decline of 1,300 students projected over the next several years. The declines are driven by lower birth rates, high housing costs, people moving away, and an aging community. While new housing will add students, it is not enough to fully offset these trends, even as PUSD remains a destination district for families.
While nearly all children who live in Pleasanton attend PUSD schools in higher grades, only 47% of eligible students attend Transitional Kindergarten (TK). This reflects a lack of awareness that public schools now start at age four and a need for after-school care at the same school. In response, the District has launched a targeted TK enrollment outreach effort and is exploring further expansion of Kids Club to better meet families’ after-school care needs.
Fiscal condition and oversight
PUSD faces ongoing fiscal challenges as declining enrollment reduces revenue, one-time funds have expired, state funding greatly lags behind other districts, and expenses continue to rise in a high-cost region. The First Interim Budget projects a negative ending fund balance, triggering additional fiscal oversight and compliance requirements. The Governor’s proposed State budget includes school funding increases, but fiscal uncertainty remains and will be reassessed in the Second Interim Budget update in March.
Actions underway
The Board has approved $11.2 million in budget reductions for 2026–27 and directed staff to begin implementation, including negotiations with labor partners, where required. Staff is closely monitoring spending, exploring revenue enhancement options (including leveraging District real estate assets and the potential pursuit of a parcel tax), and intensifying state-level advocacy for more adequate and equitable school funding. Opportunities for community engagement will be shared in the coming weeks.
PUSD also continues to benefit from strong community support through the Pleasanton Partnerships in Education Foundation (PPIE), PTA/PFCs, and athletic and music Boosters, which help close funding gaps and enrich programs and student opportunities across the District.
👉 For details, review the enrollment and fiscal presentations, or watch the meeting recording.
DECEMBER 11 REGULAR BOARD MEETING
At the December 11 Board meeting, the Board of Trustees approved the District’s 2025–26 First Interim Budget Report, which provides an updated picture of our finances using actual revenues and expenditures through October 31. The First Interim now projects a $4.7 million deficit (expenses exceeding revenues) for 2025–26. This is a significant improvement over the $7.7 million deficit projected when the budget was adopted in June but does not meet the more optimistic estimate from the 45-Day Update in mid-August, when the deficit was projected at $1.7 million. The main reason for the variance is an increase in the cost of Special Education, which is a trend seen across the region. Because the $4.7 million deficit exceeds our remaining available reserves, the District is projecting a negative ending fund balance of $2.5 million and will submit the First Interim Budget with a Negative Certification, which will bring additional oversight and support from the Alameda County Office of Education.
Looking ahead, the District has taken important steps toward long-term fiscal stability. The Board-approved $11.2 million in reductions for 2026–27 are built into our multi-year projections and will help reduce ongoing costs. The $11.0 million from the Vineyard property sale placed in a committed Stabilization Fund—while not available to cover ongoing budget deficits—strengthens our financial position and allows for internal borrowing to help cover this year’s $2.5 million shortfall.
👉 View the December 11 meeting presentation and recording.
NOVEMBER 20 special BOARD MEETING
At its November 20 Special Board Meeting, the Board approved the additional 2026–27 budget reductions totaling $3.5 million identified at the November 13 meeting. Trustees also approved a reduction in the daily substitute teacher rate, which is expected to generate $125K in additional savings. With the actions taken at the November 13 meeting, the Board has now approved $11.2 million in budget reductions for 2026–27. The Board directed District staff to begin planning for the implementation of these reductions, noting that approximately half—roughly $5.4 million—will require negotiations with labor partners.
👉 View the November 20 meeting presentation and recording.
NOVEMBER 13 REGULAR BOARD MEETING
At its November 13 Regular Board Meeting, the Board formally approved $7,509,727 in reductions for 2026–27 and directed staff to begin implementation through the appropriate processes, which may include negotiations with labor partners, resolutions, program adjustments, and operational steps.
👉 See the list of $7.5M in approved reductions.
During the same meeting, Trustees continued their review using the Budget Reductions Analysis Tool and identified an additional $3,526,975 in potential reductions.
👉 See the list of the $3.5M in identified reductions (published as part of the November 20 Board Meeting materials).
In total, the Board has now identified $11,036,702 in budget reductions.
👉 Also view the November 13 meeting presentation, full 26/27 Reduction Options list, and recording.
NOVEMBER 6 SPECIAL BOARD MEETING
At its November 6 Special Board Meeting, the Board of Trustees continued, in workshop format, the District’s budget reduction process. Alameda County Superintendent of Schools Alysse Castro attended and reaffirmed the Board’s responsibility to meet State reserve requirements and restore fiscal solvency. She noted that approval of PUSD’s 2025-26 budget remains conditional on continued progress toward a balanced budget to avoid potential State intervention and preserve local control. Following a staff presentation and public comment, Trustees reviewed follow-up questions from the October 30 meeting and continued working through reduction options using the Budget Reductions Analysis Tool. The Board identified an initial $7.5 million in ongoing reductions as part of the minimum savings target committed in Resolution No. 2025-2026.13, adopted on September 25, 2025, which calls for at least $8.9 million in total reductions over 2026–27 and 2027–28.
👉 See the November 6 meeting presentation, summary Trustee weighting sheet, and meeting recording.
October 30 SPECIAL Board Meeting
The Trustees continued their review of potential budget reductions. In preparation for the meeting, each Trustee had individually evaluated and weighted potential reduction options using the Board’s established decision-making criteria - Compliance, Goal Alignment, and Student Program Impact. During the meeting, Trustees reviewed a summary of those individual results, discussed areas of alignment, and began developing a Consensus Weighting list. The meeting included public comment, and the Board requested follow-up information for its November 6 Special Meeting.
👉 View the October 30 presentation, summary Trustee weighting sheet, and meeting recording.
October 23 REGULAR Board Meeting
The Trustees continued the budget reduction discussion that began at the October 16 workshop. Staff provided an expanded list of potential reduction options and answered follow-up questions from the prior meeting. Trustees also received instructions for applying individual weighting criteria to help evaluate reduction options.
👉 View the Oct. 23 meeting presentation, expanded list of reduction options, and recording.
October 16 Special Budget Board Meeting
The Trustees reviewed a preliminary list of budget reduction options totaling about $13.5 million. Following staff presentations, public comment, and Board discussion, the Board directed staff to return with updated analysis and an expanded list of reduction options and to continue the budget discussion at the Regular Board Meeting on Thursday, Oct. 23, 6:00 p.m. No action will be taken at the Oct. 23 Board meeting.
👉 View the Oct. 16 meeting presentation, list of reduction options, and recording.
October 2 Special Budget Board Meeting
In a workshop format, the Trustees began developing shared values, priorities, and decision-making criteria to guide upcoming budget decisions. They also reviewed a draft tool to help evaluate potential reductions and revenue options.
📄 View Presentation | 🎥 View Meeting Recording
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* This is the estimate from the 45 Day Budget Update and will be updated with the First Interim and will adjust before it is finalized.