February 18, 2025
Dear Lafayette School District Parent/Caregiver,
Like so many school districts in California, the Lafayette School District is grappling with a persistent structural deficit. We are currently mid-stream in developing plans for reducing the District’s budget by $2M in the coming school year.
You can find the current draft list of recommended changes to the 25-26 District budget proposed by the District’s Senior Leadership Team. Our District Budget Advisory Committee is also finalizing its list of recommendations, which will be available by the end of the month.
On Tuesday, February 25th at 5:00, please join me, Melissa Dodd (Business Services), Lisa Spiegler (Human Resources), Betsy Balmat (Curriculum and Instruction), and Shea Hunter (Special Education) for a virtual conversation about the District's budget.
Participants will hear a brief presentation on the District’s budget and review a summary of proposed changes for next year. You will be able to ask questions of District staff at the end of the presentation, or may email questions in advance to [email protected].
The Town Hall will be recorded and posted on the District website. You’re also welcome to leave comments in this budget survey. It’s the same survey that we sent out two weeks ago. We’ve appreciated the comments we have received so far.
Please use this Zoom link to join the webinar.
Thank you all for your participation and interest in this process.
Brent Stephens
More Background Information about LAFSD’s 25-26 Budget
Like so many school districts in California, the Lafayette School District is grappling with a persistent structural deficit. Year over year, our costs outpace the revenue we receive. While the State of California has allocated cost-of-living increases (COLAs) to education funding, these adjustments have not kept pace with the rapidly rising costs of salaries and benefits, energy, transportation, services, and materials. In the 2024-2025 school year, the District was compelled to make $2.1 million in reductions, and we now face the daunting prospect of an additional $2 million in cuts for the 2025-2026 school year. We also anticipate additional reductions in future years without significant increases in ongoing revenue.
There are several reasons why additional reductions and savings strategies will be needed in the coming year:
Planned Deficit Spending: Costs continue to increase and outpace revenue from the state. To maintain our current level of programs for students, we are deficit spending at around $5M annually.
Reserves: Due to the deficit spending outlined above, the District is not projected to meet its required 8% reserve for economic uncertainty (3% state minimum & 5% per Board policy) in 2026-27, only two years from now. We are required to meet minimum reserves over a three-year period to receive state approval of our budget.
Parcel Tax: Measure L, approved by Lafayette voters in 2020, sunsets at the end of 2026-27. The District will require a new revenue stream by that time in order to meet current and future obligations.
Despite these financial pressures, the District is steadfast in its commitment to weathering this fiscal crisis with as few cuts to services for students and staff as possible.
To this end, the District's senior leadership team has developed an initial list of reduction recommendations that will be shared with the LAFSD Governing Board on February 12. The list of reductions is made up of several key strategies, including cuts to District Office and reductions in staffing based on next year’s enrollment patterns, shifts from one funding source to another, reductions in some professional development activities, and the use of one-time funds in order to defer more painful cuts for another year. The use of one-time money to sustain important elements of our current programs is a signal that the District has entered a very challenging time.
The District has also formed a District Budget Advisory Committee (DBAC) - made up of staff, union representatives, parents, and community leaders - which will have its own set of recommendations for the Governing Board and community to consider in the spring. These draft recommendations related to staffing reductions will also be presented to the Board for consideration.
Final staffing decisions for 25-26 are required by law to be completed by March 15.