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Drummond: PYLUSD trustees are looking at budget stabilization plan for district

April 24, 2025

A “budget stabilization plan” designed to reduce or eliminate deficit spending in the Placentia-Yorba Linda Unified School District was presented to trustees at a meeting earlier this month.

The plan, according to Joan Velasco, interim assistant superintendent of administrative services, relies heavily on personnel reductions because 85% of the district’s expenses are employee salaries and benefits.

This year’s deficit for the 22,700-student district is estimated at $11.4 million, rising to $14.5 million next year. The projected deficit for the year following then drops to close to $9 million.

No action was taken on the plan. A public hearing on next year’s budget will be held June 3.

Velasco told trustees that the plan’s goals are to “prioritize student success and maintain essential services” and “ensure fiscal responsibility by identifying non-essential areas for reductions, while minimizing negative impacts on students and staff.”

If implemented as outlined, the plan would save the district $8.4 million, reducing next year’s deficit to nearly $9.6 million, based on the district receiving a 2.43% cost-of-living adjustment in state funding.

The deficit would drop to about $4 million the following year, based on a 3.52% cost-of-living increase, and a $2.4 million surplus would be realized in three years, based on a 3.63% cost-of-living increase.

However, a drop of just 1% in the cost-of-living adjustment from state funding would result in continued deficits in future years, projected at $6.9 million in 2026-27 and $3.4 million for 2027-28, instead of the $2.4 million surplus based on the 3.63% cost-of-living adjustment.

The district’s end-of-year reserve balances are projected at 15% this year; 13.1% next year; 12.3% on June 30, 2027; and 13% on June 30, 2028, under the expected cost-of-living adjustments, and a little less in the two furthest years out under the 1% reduction.

The state requires a 3% reserve and district policy seeks a minimum 5% reserve.

The plan’s $8.4 million in reductions would be achieved by $6.5 million in certificated teacher salaries and benefits, with the remainder in classified and management salaries and benefits and various non-personnel reductions.

Personnel losses would include about 85 teaching, four classified and five management positions, including a few positions that are currently vacant. Some 94 probationary teachers have been notified of layoffs, and about 30 teachers are expected to retire by June 30.

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Beverly Hills Unified School District trustees named Alex Cherniss as superintendent on April 10 on a 3-2 vote. He’s scheduled to begin serving the 3,300-student, four-campus district June 1.

Cherniss began as superintendent of the Placentia-Yorba Linda district May 1, 2023, on a 5-0 vote. His contract was amended in November to require four votes for dismissal on a 3-2 vote, and he was placed on paid leave Dec. 19 on a 5-0 vote.

Jim Drummond is a longtime Yorba Linda resident. He gives his opinion on local issues weekly. Send e-mail to [email protected].

Orange County Register

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Drummond: PYLUSD trustees are looking at budget stabilization plan for district

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