Monday, October 6, 2025

Pasadena Unified Launches Fiscal Stabilization Process to Address $30+ Million in Reductions

The Pasadena Unified School District (PUSD) has launched a transparent, community-informed process to stabilize its budget and implement reductions of $30-35 million for the 2026-27 school year. The Board of Education is scheduled to take action in November to meet an early December deadline set by the Los Angeles County Office of Education (LACOE). 

The district closed out the 2024-25 fiscal year with a positive balance across all funds – largely due to a $12 million reduction in planned spending for 2025-26 and one-time disaster-recovery funds following the Eaton Fire.

Originally scheduled to cut $27 million to meet a structural deficit, the district made a “conscious decision” to reduce the scale of those cuts in light of the Eaton Fire and its “commitment to caring for our community during recovery.” 

The results, according to the district, is a $30-35 million budget shortfall in 2026-27, driven by a structural deficit, rising costs, declining enrollment, and the volatility of federal funding. 

“Our first priority is students and their classroom experience,” said PUSD Superintendent Elizabeth Blanco, Ed.D. “We are committed to leading this difficult process with transparency and respect for the employees who have built PUSD, while ensuring that our schools remain welcoming and safe, and focused on learning.”

PUSD’s Fiscal Stabilization Plan for 2026-27 requires between $30-35 million in reductions that take effect beginning July 2026. 

The L.A. County Office of Education has notified the district action will be taken if these reductions are not completed within the current year. 

The district said in a Sunday statement it is committed to three guiding priorities for this process: 

• Students: Classroom learning remains supportive, consistent, and centered on student achievement.
• Transparency: Budget decisions will be informed by engagement with the community, with meetings of the reconvened Superintendent’s Budget Advisory Committee (SBAC), made up of students, staff, parents, and community members, a dedicated website, and Board of Education actions, all open to the public.
• Respect for Employees: Recognizing that every staff member has contributed to building PUSD, decisions will be guided by care and dignity.

“We are also incredibly grateful to the voters for their continued support of public education through voter-approved measures,” said Superintendent Blanco. “With the passage of Measures O and R, we are improving learning environments by modernizing classrooms and labs, expanding STEAM spaces, and repairing essential infrastructure. These monies can only be used to upgrade and build new school facilities.” 

“Measure EE, our new local parcel tax, will help offset additional reductions,” Dr. Blanco continued. “I have spoken with leaders of the City of Pasadena, who continue to stand in support of our students and schools. Together, all of these dollars help us protect vital academic programs, retain high-quality educators, and provide the strong educational foundation and the quality learning environments our students deserve. Moving forward, we must

continue to work together as a community to achieve fiscal stability and support all PUSD students.” 

The reconvened Superintendent’s Budget Advisory Committee is focusing on school-based services. Their work this fall will help inform the Board’s decisions about how to align resources with the district’s priorities for the 2026-27 school year. 

Separate workstreams, or processes, are concentrating on identifying reductions or revenue in seven other areas, including: 

1.Central Office Reductions, guided by the SBAC recommendations identified last year 

2.Contracts 

3.Grant Maximization 

4.Special Education 

5.Transportation 

6.Asset Management 

7.Staffing to Ratio/Vacancies

Process and Timeline 

• September-October 2025
• The Superintendent’s Budget Advisory Committee meets publicly to review options and develop recommendations. Information is posted at pusd.us/sbac. 
• Other workstreams identify reductions/revenue. 

• November 2025
• November 13, 2025 – Board of Education reviews recommendations for reductions. 
• November 20, 2025 – Board of Education takes final action.

• December 2025 
• Implementation of reductions begins. The First Interim Report is delivered to LACOE, and the district begins the process of identifying positions for reductions in accordance with collective bargaining agreements with labor partners. 
• March 2025
• Reduction in force notices issued.
• July 2026

A new budget with $30-35 million in reductions takes effect. For more information about PUSD’s budget, please visit: pusd.us/budget.