Note: This article was submitted prior to the District’s Board meeting on December 11.
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In public education, there are moments that demand courage, clarity, and an unwavering commitment to students and the truth. For Pajaro Valley Unified School District, that moment is now.
The decisions before us are difficult, and painful, because they touch what we value most: our schools, our staff, and the children and families who count on us every single day.
In September and again in October, the Santa Cruz County Office of Education formally notified us of the severity of our fiscal condition. As of today, PVUSD is facing a $12.15 million structural deficit this year, which is projected to rise to $29.65 million by 2027-28 based on the December Mid-Year Interim Budget.
At the same time, our enrollment continues to decline. Next year, we expect 473 fewer students, a trend that has persisted year after year. In California, fewer students mean less funding. And with salaries and benefits comprising approximately 80% of our total budget, and 92% of our unrestricted budget, staffing must align with enrollment realities.
These numbers are not comfortable to face but ignoring them would jeopardize the very future of our schools.
Acting Now to Protect Students and Keep Decisions Local
If a district becomes insolvent, the state does not wait. A state-appointed administrator assumes full control over staffing, budgets, and operations.
The local voice disappears. Community input disappears. Negotiations disappear. And recovery can take decades.
Acting now, together, keeps decisions where they belong: with the people who know our community, who love our students, and who are committed to protecting our schools.
Reserves Are Not a Solution to a Long-Term Challenge
A common question is, “Why not use reserves?”
The answer is simple: our deficit is ongoing; reserves are one-time. Using one-time money to cover ongoing costs only delays the crisis and forces more painful decisions later. Reserves cannot solve a structural deficit, and relying on them would move us closer to insolvency, not further from it.
Adding another layer at this moment is the uncertainty of the federal government’s commitment to funding key educational programs next year and beyond that comprise 7% of our revenue $359 Million.
Hard Decisions, Made with Compassion for Our Community
Every solution impacts real people, our teachers, support staff, families, and most importantly, our students. That is why these decisions carry so much weight.
Compassion does not mean avoiding hard choices. True compassion means facing our challenges with sincerity and making decisions that protect the long-term health of our district.
This is not about choosing cuts, but about choosing truth, stability, and a future where PVUSD remains strong, solvent, and guided by local leadership, ensuring our schools stay safe, supported, and community-driven for generations to come.
Building a Stronger Academic Future Through Literacy Innovation
In October, the Board of Trustees approved a three-year Memorandum of Understanding providing stipends for elementary teachers and administrators completing the intensive two-year LETRS program. Over the next three years, every elementary teacher will have the opportunity to participate.
This initiative:
- Provides a multi-year commitment to teacher learning and classroom innovation
- Offers a structured two-year training sequence that deepens literacy expertise
- Directly impacts student reading outcomes across TK–6 as strategies are applied in classrooms
- Supports teachers with up to $30,000 in completion-based stipends
- Includes all TK–6 educators, special education, intervention, coaching, and administrators
Grounded in the belief that empowered teachers create empowered students, this initiative is helping PVUSD students build stronger reading skills, greater confidence, and a foundation for success from the very first lessons onward.
Looking Ahead
By the time you read this, the Board will have heard initial proposals and taken the first steps toward restoring fiscal stability. These conversations are emotional, and the worry is real. But so is our strength.
This community has always risen to difficult moments with unity, courage, and an unshakeable belief in its children. We will do it again! Together, we will safeguard our schools, today, tomorrow, and for the many years to come.
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Dr. Heather Contreras is superintendent of Pajaro Valley Unified School District.