![\"\"](\"https:\/\/www.newsbeep.com\/us-ca\/wp-content\/uploads\/2026\/05\/Natera_230607_241_BUSDBoardmeeting_04.jpg\")
BUSD Assistant Superintendent of Business Services Pauline Follansbee during a school board meeting in June 2023. The school board spelled out an early version of a budget-balancing plan that would leave a roughly $843,000 cushion for next year. Credit: Ximena Natera, Berkeleyside\/CatchLight<\/p>\n
A few weeks ago, Berkeley school district leaders were facing a $10.4 million budget deficit, with some pain coming from an early state budget plan from Gov. Gavin Newsom that could have meant the loss of up to $7.8 million<\/a> in Proposition 98 funds for the district.\u00a0<\/p>\n But after Newsom revised his budget<\/a> on May 14 following pushback from educators, the Berkeley Unified School District (BUSD) is expecting a more palatable financial picture for the 2026-27 school year. District leaders are now confident they\u2019ll get at least $2.7 million more in state revenue, including Prop 98 funds, than they had previously planned on.\u00a0<\/p>\n The school board spelled out an early version of a budget-balancing plan Wednesday that would leave BUSD with a roughly $843,000 cushion for next school year \u2014 achieved via staff reductions<\/a>, new transportation fees and central\u2011office cuts.<\/p>\n Under the plan, BUSD would avoid the most severe reductions, maintaining all of its college preparation programs.\u00a0<\/p>\n But 21 non-teaching positions would still be cut<\/a>, including all nine after-school coordinators, an ethnic studies teacher and administrative positions at Berkeley High and Berkeley Tech. District leaders are considering shifting additional costs into longer-term sources of funding, like the Berkeley Schools Excellence Program (BSEP), a local special tax that supports public education, among other steps.<\/p>\n BUSD officials are still reviewing the details of the budget\u2011balancing plan, which aims to close a multi\u2011year deficit without destabilizing classrooms, and an update will be presented at the board meeting next Wednesday, May 27.<\/p>\n After the governor\u2019s revised budget, \u201cit\u2019s like, \u2018Oh, maybe there are options,\u2019\u201d school board director Jennifer Shanoski said Wednesday. \u201cI look forward to next week\u2019s discussion, where we have a better understanding of what those numbers look like, and we can make more strategic decisions.\u201d\u00a0<\/p>\n State law requires the school board to adopt a balanced budget by June 30 each year.<\/p>\n But the district still faces some financial uncertainty in the long term. Even after the governor\u2019s revised budget, Berkeley Unified projected about a $600,000 deficit in its Local Control and Accountability Plan (LCAP)<\/a> supplemental budget, which pays for services aimed at high\u2011need students. BUSD officials said some of that gap could temporarily be covered by one\u2011time funds, but staff warned that those dollars will run out within a few years.<\/p>\n What\u2019s driving budget deficits and revenue at BUSD?<\/p>\n BUSD\u2019s deficit, like that of other school districts, is being driven in large part by enrollment declines that began during COVID-19. While BUSD enrollment has inched upward in recent years, it remains below pre\u2011pandemic levels, reducing the funding it receives through students\u2019 average daily attendance.\u00a0<\/p>\n Compounding the problem, special education costs are growing faster than state funding, and one\u2011time grants, like COVID-19 relief money, are expiring.<\/p>\n Labor costs have also increased, with the Berkeley Federation of Teachers securing 6% wage increases<\/a> over two years and higher health benefits in a new contract. The district negotiated<\/a> with all four of its unions this year, with projected costs reaching $8.7 million in 2026\u201127 and $7.6 million each in the next two years. BUSD leaders note that about 80% of the budget is tied to personnel expenses, and they anticipate a mid-year budget increase next year to cover negotiated benefits.<\/p>\n During Wednesday\u2019s meeting, BUSD board members pulled five top administrators\u2019 employment contracts, including Superintendent Enikia Ford Morthel\u2019s, from the consent agenda for further review. The contracts contained proposed salary increases, with Morthel\u2019s containing a 2.5% retroactive raise for 2025-26 and a 3% increase the following year. The superintendent\u2019s salary was $310,200, as of July 2025.<\/p>\n The increasing expenses are putting pressure on the district\u2019s finances, pushing BUSD to move forward with additional cost\u2011cutting. BUSD is consolidating administrative positions and making about $75,000 in cuts to the Home and Hospital program<\/a> \u2014 which serves students with disabilities who cannot attend school for long periods \u2014\u00a0 to stabilize the budget. BUSD removed job vacancies last year and the year before; leaders said there are no savings from closing positions in the 2026-27 school year.<\/p>\n Additional savings would come from eliminating duplicate roles, reducing printing costs ($867,000), and requiring non\u2011union employees earning over $125,000 to take five furlough days.<\/p>\n To increase revenue, the district is planning to collect a $1 bus transportation<\/a> fee for non-BUSD after\u2011school programs, totaling $242,680 for the year and impacting about 700 students. BUSD is also expanding Medi\u2011Cal billing for eligible health services<\/a> and shifting eligible expenses to fall under longer-term funding.<\/p>\n Even slight increases in enrollment are a bright spot in a difficult budget year. BUSD projects 15 additional students next school year, which would generate $13,860 per pupil, or about $194,000 more in revenue.<\/p>\n Additional funding includes a Pacific Gas & Electric reimbursement ($200,000 in one\u2011time support and $100,000 in ongoing funds), along with a $250,000 grant from the California Youth Behavioral Health Initiative. The district also expects $4.57 million from the state\u2019s Student Support and Professional Development Discretionary Block Grant to fund academic, mental health and staff needs.<\/p>\n Community members on Wednesday praised the district for avoiding large cuts, but urged BUSD leaders to fully fund ethnic studies, maintain after-school coordinators<\/a> and safeguard equity\u2011focused programs like the Bridge<\/a> college preparation program for years to come.<\/p>\n BUSD\u2019s planned budget reductions also include:<\/p>\n Transferring expenses to other funding sources to shift central office clerical costs away from the general fund.<\/p>\n Moving parent reports to a digital format to eliminate printing and distribution expenses.<\/p>\n Shifting BUSD\u2019s LanguageLine contract to BSEP to reduce general fund spending on translation services.<\/p>\n Upgrading the district website and changing vendors to reduce long\u2011term maintenance and costs.<\/p>\n Reducing specialized printing and copying by limiting high\u2011cost print jobs across departments.<\/p>\n Making school\u2011site staffing adjustments by reducing Berkeley Tech Academy clerical support and eliminating duplicate Berkeley High School and BTA positions.<\/p>\n Scaling back Berkeley High wellness support tied to expiring grants.<\/p>\n “*” indicates required fields<\/p>\n","protected":false},"excerpt":{"rendered":"BUSD Assistant Superintendent of Business Services Pauline Follansbee during a school board meeting in June 2023. 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