By SDCN Editor
San Diego, CA–San Diego Unified School District’s strategy to drive down its $112 million projected deficit for next year is advancing better than expected with some unplanned developments that heavily favor San Diego Unified.
Employees deciding to take the Supplemental Early Retirement Plan (SERP) was about 27% higher than originally anticipated. The estimated projection was 755, but 965 filed the SERP paperwork by the January 15 deadline.
“The higher number of people taking early retirement is another positive step toward our goal of delivering a balanced budget in June,” said Dr. Fabi Bagula, San Diego Unified School District Superintendent (Interim). “The increased number of retirees provides us an opportunity to work with site administrators to assess the way we have been doing things and reimagine our staffing approach to better serve our students and families.”
SD Unified’s Budget Review Team communicated with principals, site administrators, and labor partners that the increase in SERP applicants “gives us an opportunity to develop and implement an attrition model that is both fiscally aligned and allows us to retain as many employees as possible to avoid a large amount of layoffs.”
“I am thrilled that we get to honor the work of our colleagues with a retirement pathway that recognizes their commitment and service to our students,” Dr. Bagula said.
Specific SERP savings data is not yet available because an analysis is underway.
Governor Gavin Newsom’s recently released 2025-26 budget is another bright spot for California’s second-largest school district as it works to eliminate a projected $112 million budget deficit by June 2025. Currently, ahead of the May Revise, the governor’s proposal includes:
$118.9 billion projected minimum Prop. 98 guarantee (which establishes minimum funding levels for schools and community colleges), an increase of $3.6 billion from the enacted level in the 2024-25 budget.
$4.4 billion in expanded learning programs; $2.4 billion to expand access and lower staffing ratios in Transitional Kindergarten; $2 billion towards universal meals; $1 billion for Arts and Music through Prop. 28
However, while the Cost of Living Adjustment (COLA) is being funded at this year’s statutorily required level calculated at 2.43%, the District built out its budget based on the COLA projection at the time of 2.93%. The District will advocate for the projected COLA to be included in the final budget to provide much-needed fiscal stability.
“There is reason to be hopeful for school districts across California when it comes to Gov. Newsom’s funding proposals, and we will continue to advocate to ensure our students get their fair share of funding in the final state budget,” said Dr. Bagula. “At the same time, we will continue our work at San Diego Unified to identify potential savings, while not compromising our values and vision of keeping students at the center of everything we do.”
The governor’s proposal lays a strong foundation for educational investments to support student outcomes. However, given the increasing number of students with disabilities San Diego Unified serves, particularly those with extensive support needs, the District will continue to advocate for increased investments in special education funding to be included in the final state budget.
Budget Workshop—In February, the District will hold another budget workshop with the community, where the Governor’s proposed budget, SERP, and the work being done to reduce the District’s deficit to zero will be shared.
Second Interim Report—In March, the District will present the second interim budget to the Board of Education, where the Trustees will detail specifics on further reductions to achieve a balanced budget.
Lead Up to June Budget Adoption – After the second interim report, the District will continue to work on the budget, make adjustments, issue possible notices for certified or classified employees – if needed, and review the governor’s revised budget.
In June, the Board of Education will adopt a final budget.
