South Pasadena Unified School District

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Updates » SPUSD Budget Fast Facts - May 21, 2020

SPUSD Budget Fast Facts - May 21, 2020

SPUSD Budget Fast Facts is a brief recap of funding and budgetary actions affecting the SPUSD community. Every effort will be made to share regular updates with current information. This synopsis is not intended to offer lengthy explanations, but instead to provide important details.
The May 21, 2020 edition focuses on Governor Newsom’s May Revision budget proposal.
What did we learn from the Governor’s May Revision budget proposal?
  • The May Revision budget proposal addresses a more than $54 billion gap in the overall state budget due to the COVID-19 crisis.
  • Governor Newsom proposes cutting roughly $6.5 billion - about 10% - from the Local Control Funding Formula (LCFF) compared to the 2019-2020 budget.
    • SPUSD’s 2020-2021 LCFF revenue will decrease by $4.3 million.
  • The Governor plans to reallocate $2.3 billion in funds previously dedicated to paying down schools’ unfunded liability to CalSTRS and CalPERS to instead pay the school employers’ retirement contributions.
    • SPUSD will see a decrease in the required employer contribution for the 2020-2021 budget.
  • The May Revision relies on $4.4 billion in federal funding that has not yet been received to address learning loss and equity issues exacerbated by the COVID-19 school closures. This funding may be used for programs to address equity gaps and also may be used for necessary modifications so that schools are prepared to reopen in the fall and support parents’ ability to work.
    • SPUSD will receive modest funding, but the amount is unknown at this time.
What are SPUSD’s next steps? SPUSD will...
  • Plan for substantial reductions to the 2020-2021 budget proposal to prevent fiscal insolvency.
  • Follow a step-by-step or phased approach to manage the budget reductions.
  • Make changes that include difficult decisions about reductions and how to remain solvent due to the anticipated deficit.
  • Seek out the best ways to save money while reducing the impact on employees and programs.
  • Reevaluate the budget after legislators respond with the June 15, 2020 budget proposal.
  • Encourage the community to advocate for public education with local legislators and to strongly support the PTAs, Booster Clubs, and SPEF (South Pasadena Educational Foundation) whenever possible as local funding sources directly impact students.