Editor’s note: This letter was posted to the community on Feb. 9.
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When I was selected for the Superintendent position, I made a commitment to the Board that my leadership rested on collaboration, transparency, and community.
I knew I was inheriting a specific set of challenges that would need to be addressed including the sunsetting of one-time dollars and declining enrollment.
The one guarantee I could provide to PVUSD was that every decision would be made with community input and with transparency.
The creation of the Sustainable Budget Team was an effort to:
- Involve the community in the recommendation for the first reductions of programs, services and positions that were added with one-time dollars.
- Live-stream, record, and post all materials related to budget, decision making, and discussions of school finance so that any person inside or outside of the community could have access the decision making process at any time. I have not heard of a district committing to this level of transparency related to budget.
The “right-sizing” of positions is an annual process. This process, simply put, is the alignment of the number of students enrolled to the number of staff needed to teach the students.
The staffing ratio set in the Education Code and in our Collective Bargaining Agreement with the teachers union. The District will and must follow staffing ratios and class size. There are no plans to make any changes or adjustments to class sizes. Our current class sizes as per contract will remain the same for the next school year.
Resolutions to close positions are a legal requirement. Using advice of legal counsel, and in the utmost commitment to full transparency, we have brought forward the Exhibit in Open Session.
This Exhibit indicates each position recommended for reduction. Sharing the Exhibit in Open Session has not been a past practice.
Sharing this in Open Session is further testimony to our commitment to transparency.
To be clear, this list is inclusive of all known reductions anticipated in the 2025-2026 school year. This list includes both the reductions approved by the Board due to one-time funding and necessary reductions due to enrollment projections for the 2025-2026 school year:
- 19.75 classified positions
- 14 teacher retirements
- 39 unqualified (legal term meaning not credentialed and on temporary one-year contracts
- 7 teachers on temporary status
- 11 intern teachers
- 7.5 certificated administrators
As a point of comparison, the Resolution and Exhibit to close positions for the 2024-2025 school year included 60 certificated staff.
To further mitigate impact to staff, PVUSD will be asking for Board approval of a $10,000 retirement incentive.
Additionally, we will continue to work closely with our labor partners to negotiate the impacts of any reductions and have already calendared dates for this work.
Reductions are something no district ever wants to endure. However, we must ensure we are fiscal responsible and fiscally solvent so we can continue to make our own local decisions and support our students in the way our community believes is best. The impacts of COVID were challenging, and recuperating from the influx of the funding districts received to mitigate those impacts has proven to be very difficult as well.
Declining enrollment also has an impact, and unfortunately for PVUSD and most districts in California, these two challenges are coming together at one time.
We will continue to provide as much information to you in an open and honest manner in the days and weeks ahead. Please know I am available to you for questions and concerns, as is the PVUSD staff.
There appears to be some misinformation in the community, and we want to be sure to keep everyone apprised
of the facts as we move forward and we want to keep the focus on our students so they can continue to achieve in the best way possible using the means that are provided to us.
— Dr. Heather Contreras, superintendent, Pajaro Valley Unified School District
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FAQ
Are the Certificated 80.8 FTE and Classified 19.75 FTE going to the board at the February 12 board meeting in addition to the reductions approved by the Board of Education last month?
At the Jan. 15 Board meeting, the Board of Education heard the recommendations from the Sustainable Budget Team (SBT) and approved a plan for reductions, with a focus on services and supports started or supported by one-time pandemic funding.
The SBT, made up of parents, community partners, labor partners, educators, principals and district office administrators met from September through December prior to making their collective recommendations.
The reductions from the plan approved by the Board of Education on Jan. 15 as a result of the SBT are included in the Resolutions and Exhibits for the Feb. 12 Board of Education meeting.
Why are there additional positions on top of those approved by the board from the Sustainable Budget Team recommendations?
The “right-sizing” of positions is an annual process. This process, simply put, is the alignment of the number of students enrolled to the number of staff needed to teach the students.
From this school year, 2024-25, to 2025-26, the district is projecting a loss of approximately 600 students which will reduce the number of classrooms and teachers needed.
The staffing ratios are set in the Education Code and in our Collective Bargaining Agreement with the teachers’ union.
The District will and must follow staffing ratios and class size. There are no plans to make any changes or adjustments to class sizes. Our current class sizes per contract will remain the same for the next school year.
Resolutions to close positions are a legal requirement.
To be clear, the 80.8 certificated positions and 19.75 classified positions are inclusive of all known reductions proposed for the 2025-2026 school year.
This list includes both the reductions approved by the Board due to one-time funding (35.5 positions) and necessary reductions due to enrollment projections for the 2025-2026 school year. Of the 80.8 positions, 7.5 positions are administrator (management) positions.
When evaluating certificated teacher reductions, the district first looks at seniority and credentialing.
Per CA Education Code the district is obligated to consider the following categories of non-permanent staffing listed below before making reductions to permanent staffing.
Additionally, the district has 14 known teacher retirements that are part of the 80.8 certificated number and will likely receive more retirements as part of the early retirement incentive program going in front of the Board for approval on February 12.
- 39 unqualified teachers (legal term meaning not credentialed and on temporary one-year contract)
- 7 teachers on temporary status
- 11 intern teachers
To further clarify, 35.5 positions of the total were reduced due to the loss of one-time funding as per the recommendations of the Sustainable Budget Team and Board approval on Jan. 15.
In comparison, last year’s Exhibit included 60 certificated staff.
Why is the district getting rid of the Math Director, Science Director, and VAPA Coordinator? Does that mean that we are cutting Math, Science, and VAPA instruction?
No, we are not getting rid of Math, Science, or VAPA instruction. Our Curriculum and Instruction Division is undergoing a reorganization. Currently, the division has a Director who oversees Language Arts, History, and Ethnic Studies.
This position is able to emphasize Literacy across the Humanities disciplines. When working with teachers, the position is also able to promote critical thinking, cultural awareness, and a deeper understanding of diverse perspectives, preparing students for a more connected and informed world.
Establishing a STEAM Director in the reorganization of the division is crucial for guiding and integrating science, technology, engineering, arts, and math education, ensuring a balanced, innovative curriculum.
The position is able to foster interdisciplinary learning, support teacher development, and prepare students with skills needed for future careers in a rapidly evolving world. This position also elevates the duties and responsibilities held by the VAPA Coordinator position to a Director level.
Who will be able to support Math, Science, and VAPA teachers if you are getting rid of the Directors and Coordinator?
The Instructional Coaches in the Curriculum and Instruction division will continue to be able to support teaching staff on standards-based instruction and research-based instructional practices.
Our Coaches, along with our STEAM Director and our Language Arts/History Director, are able to provide targeted guidance, professional development, and resources to Math, Science, and VAPA teachers, ensuring they continue to grow and effectively support student learning.
How will the district support GATE students if the VAPA/GATE Coordinator position goes away?
The following are best practices we will continue to support teaching staff with when working with our GATE-identified students.
These strategies can help ensure GATE students are both intellectually stimulated and supported in their social and emotional development.
- Differentiated Instruction: Offer advanced content and allow for more complex tasks, such as project-based learning or independent research.
- Flexible Grouping: Group students based on their strengths or interests to allow for collaborative learning and challenge.
- Provide Choice: Give GATE students options in how they demonstrate their understanding, such as through presentations, written reports, or creative projects.
- Encourage Critical Thinking: Provide opportunities for deep discussions, debates, and problem-solving activities that push students to think critically and creatively.
- Foster Independence: Allow for self-directed learning where GATE students can explore topics of personal interest at their own pace.
- Social-Emotional Support: Recognize the emotional needs of GATE students by providing a balanced approach to challenge and support, addressing perfectionism or isolation tendencies that can arise.
- Ongoing Assessment: Regularly assess students to monitor their progress and adjust learning plans, ensuring they continue to be challenged and engaged.
I heard the district has a $60 million reserve? Why does the district have to make these cuts right now?
CA Education Code requires the Board of Education to review and approve a multi-year budget projection that spans the current fiscal year plus two additional fiscal years.
In order to receive a ‘Positive Certification’ from the County Office of Education and the California Department of Education, school districts must show they can meet the minimum reserve for economic uncertainty in all three budget years from the unrestricted general fund. For PVUSD, the minimum reserve is 3% of total expenditures in the general fund.
At the 1st Interim budget period, the general fund projected an unrestricted ending fund balance of $56 million. However, several important factors need to be considered:
1) The district has seen the loss of 3,378 students, 18%, between 2013-14 through 2024-25.
According to projections from the CA Department of Finance, Santa Cruz County is expected to see a further enrollment decline of approximately 18% in the next decade.
Due to declining enrollment, the district will receive less Local Control Funding Formula revenue, which is the main “bread and butter” of schools. LCFF funding pays for the general education program, including general education teacher salaries.
In 2024-25, PVUSD will receive approximately $10 million less in LCFF funding than the prior year. These decreases will continue as enrollment and average daily attendance continues to decrease. At the same time, expenses continue to increase.
2) Due to the loss of LCFF revenue projected in the multi-year projection, the district is projecting to deficit spend $12.4 million in 2025-26 and $12 million in 2026-27.
Without course correction, this deficit spending will continue in each subsequent year and cannot be sustained.
3) The multi-year projections do not include any negotiated increases for any of the bargaining units.
The district has not settled for the current 2024-25 school year or any future years. Once these projected costs are included in the budget, the district will not meet the minimum reserve in 2027-28.
Due to the legal requirement to have a multi-year projection that spans three years, the district will need to include the 2027-28 fiscal year for the first time in budget projections at the 2025-26 Proposed Budget period this coming June 2025.
If the district cannot meet the minimum reserve in all three years, the district will receive a ‘Qualified Certification’ next year.
4) The fund balance is not the same as the cash balance.
The fund balance includes accruals such as accounts receivables, which are receipts and revenues that are considered measurable and collectible within a certain time span.
Often the cash balance is lower than the fund balance. In 2024-25, the total expenditures projected from the general fund is over $386 million. The monthly payroll expenses alone are upwards of $24 million.
The district must maintain a cash balance in the bank to be able to maintain monthly payroll and expenses.
I also heard the district spends $40 million on consultants? Can we make reductions to consultants instead?
The district has been reviewing contracts and has started making reductions in 2023-24. The district will continue to re-evaluate contracts as they expire or come to the end of the contract period.
The total 2024-25 unrestricted general fund expenditure budget is $40 million for the category called services and operating expenses.
This category is wide-ranging and encompasses standard operating costs such as utilities (PG&E, gas, water, garbage), insurance premiums, leases for buildings and portables, facility and vehicle repair costs, and legally mandated reporting and monitoring services such as independent third-party auditors and actuarial services — as well as services that directly support students and staff such as field trips, athletic costs such as referees, league fees and uniforms, all software and technology licenses, professional learning and development, special education agency hires, non-public school fees, parent engagement and school site council expenses, and much more.
TOP PHOTO: Aptos High students Chiara McKay, Grey Shingu, Mikayla Newcombe, and Jacob Semb in “The Importance of Being Earnest.” • Photo Credit: Stacy Aronovici