PGUSD Budget Advisory Subcommittee
Understanding Our Role in PGUSD Financial Stewardship
Carly Adams, Fiscal Officer
Josh Jorn, Assistant Superintendent (CBO)
Advisory Function vs. Decision-Making Authority
Our Role
We provide thoughtful recommendations and evidence-based feedback—we don't approve budgets or make final fiscal decisions.
Bridge Function
Connect staff expertise, diverse stakeholder perspectives, and Board governance responsibility through collaborative dialogue.
Diverse Voices
Administrators, staff, trustees, and union representatives bring different angles to create well-rounded budget insights.
Why Advisory?
Ultimate fiscal authority belongs to the elected Board of Education, ensuring democratic accountability and legal compliance while benefiting from broad community input and professional expertise.
Supporting Transparency, Equity, and Alignment
Transparency
Making complex budget processes understandable and accessible to families, staff, and community members through clear communication.
Equity
Evaluating whether resource allocation gives all students equitable opportunities to succeed, regardless of background or school site.
Alignment
Connecting budget decisions directly to PGUSD's Strategic Plan and LCAP goals for measurable student outcomes.
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Connection to Student Success
Beyond Numbers
Every line item represents teachers in classrooms, support staff helping kids, and programs making a tangible difference in student learning and well-being.
Fiscal Stewardship
Balance immediate student needs with long-term sustainability. Avoid creating future structural deficits by planning for loss of funds tied to specific programs.
Taxpayer Trust
We are stewards of public funds—our decisions must reflect community trust and demonstrate responsible use of local tax dollars.
District Budget Structure
1
July 1
Fiscal year begins with adopted budget implementation
2
September
Unaudited Actuals submitted showing previous year's final numbers
3
Dec/March
First and Second Interim Reports analyze current year progress
4
June
Adopted Budget for following year approved by Board
Annual cycle with multiple checkpoints to compare projections to actuals and make necessary adjustments.
Budget Planning Cycle (Fall–Spring)
01
Planning & Preparation
(Sept–Nov)
  • REVIEW strategic goals and previous year performance
  • EVALUATE current year budget execution and variance analysis
  • ANALYZE enrollment trends and staffing projections
  • ENGAGE stakeholders including admin, staff, Board, and community
  • IDENTIFY funding priorities and fiscal constraints
02
Development
(Dec–Feb)
  • Draft financial assumptions for revenue, expenditures, and formulas
  • Estimate funding from all sources including federal and state
  • Build detailed department and school site budgets
  • Review and evaluate proposed program changes and additions
03
Review & Refinement
(Mar–Apr)
  • Update revenue and expenditure projections with latest data
  • Finalize budget proposal with stakeholder input incorporated
  • Share comprehensive proposal with Board and community
  • Gather feedback and make final adjustments
Budget Adoption & Implementation (Summer & Beyond)
1
Approval & Adoption (May–Jun)
Public hearings ensure community input, followed by formal Board adoption and submission to state and local authorities for compliance.
2
Implementation (July start of FY)
Allocate funds to departments and sites, execute contracts and staffing plans, begin authorized spending according to approved budget.
3
Monitoring & Adjustment (Ongoing)
Monthly and quarterly financial reviews, budget amendments and transfers as needed, regular reports to stakeholders, and annual audits for compliance.
Unrestricted vs. Restricted Funds
Unrestricted Funds
Flexible dollars for general operations including staffing, utilities, and instructional programs. Primarily funded through local property taxes and basic state aid.
Restricted Funds
Legally required for specific purposes only. Special Education, Title I, federal grants—cannot be redirected to other uses without legal consequences.
Unrestricted vs. Restricted Funds
Unrestricted Funds
  • Discretionary use determined by district leadership
  • Supports general operations: salaries, utilities, supplies, maintenance
  • No external restrictions; Board decides allocation priorities
  • Examples: property taxes, base funding, unrestricted donations
Restricted Funds
  • Must be used for specific purposes defined by law, grant, or donor
  • Support targeted programs and projects, not general operations
  • Subject to strict reporting and accountability requirements
  • Examples: Special Ed, Title I, Capital Projects, Nutrition, specific grants

Key Takeaway: Unrestricted funds provide flexibility for overall operations, while restricted funds are controlled and tied to specific programs with legal compliance requirements.
Not All Dollars Are Flexible
Q: "Why can't we use that money for X?"
A: Legally and ethically, we cannot redirect restricted funds without violating compliance requirements and jeopardizing future funding.
Federal/State Allocations
Federal Funding
Title I, Title II, IDEA programs provide smaller but critical funding for targeted student populations and specialized services.
Local Property Taxes
Primary funding source labeled as LCFF, including LCFF base apportionment and EPA (Education Protection Account) funds from local assessments.
Funding Uncertainty
State apportionments fluctuate based on changing legislation, economic conditions, and evolving policy priorities at state and federal levels.
SACS Account Coding
Purpose: Standardized Reporting
California's SACS system ensures all school districts and educational agencies report financial data consistently, making it easier to compare and understand funding across the state.
Structure: Detailed Tracking
This comprehensive 32-digit code meticulously categorizes every financial transaction, providing specific details for clear tracking of funds.
SACS Code Components
Understanding the SACS Code Components:
Fund
Indicates the main category of the account (e.g., General Fund for daily operations, Special Revenue for specific programs)
Resource
Identifies where the money comes from and its type (e.g., federal grants, state allocations, local donations)
Project Year
Used by districts like PGUSD to track grants that span multiple years (e.g., funding for Career Technical Education programs)
Goal & Function
Specifies which student group benefits and the type of service provided (e.g., instruction for all students, administrative support, facility maintenance)
Object & Subobject
Describes what the money is spent on or where it comes from (e.g., salaries, supplies). Subobjects can add further detail, like tracking specific payroll items
Site, Local, & Management
Pinpoints the specific school site, differentiates between various programs, and tracks expenses related to district plans (like LCAP) or bond projects
Include a link to the PGUSD Chart of Accounts at the bottom.
Basic Aid District: Enrollment vs. Revenue
Revenue Stability
Unlike LCFF districts, our primary revenue comes from local property taxes rather than Average Daily Attendance (ADA). Day-to-day attendance fluctuations only reduce specific state revenue streams like ELOP, CSPP, and Transportation funding.
Enrollment Still Matters
While not directly tied to base funding, enrollment significantly affects staffing levels, program capacity needs, facilities utilization, class sizes, and community expectations for service levels.
Rising Costs Without State Support
4.35%
Revenue Neutrality
Annual property tax increase needed just to maintain current funding levels without program cuts
19.1%
STRS Rate
Current teacher pension contribution rate, rising annually and adding significant cost pressure
26.81%
PERS Rate
Classified staff pension contribution rate, substantially higher than teacher rates
Step-and-column salary growth, healthcare benefits, and pension costs rise annually—but Basic Aid districts don't receive automatic Cost-of-Living Adjustment (COLA) increases from the state like LCFF districts.
One-Time vs. Ongoing Funding
Ongoing Revenue
Property taxes and smaller state/federal aid streams provide our core, recurring funding base that supports daily operations and permanent staffing.
One-Time Funds
Strategic use for facilities improvements, instructional materials, technology upgrades, and pilot programs—never for permanent staffing positions or recurring operational costs.
Multi-Year Projections
Property tax revenue growth can be steady and predictable, but operational costs often rise faster than revenue—making proactive long-term planning essential for fiscal sustainability.
Revenue Projections
Depend on local property tax growth rates, housing market stability, economic development, and local assessed valuation trends
Expense Growth
Staffing costs, employee benefits, and pension contributions grow at predictable but often faster rates than revenue increases
Future Balance
Ensure today's budget decisions don't create structural deficits that compromise future educational programming and services
Committee's Role in Budget Process
Community Oversight
Since most funding comes from local property taxes, community input and oversight are especially important for maintaining public trust and accountability.
Advisory Perspective
Review comprehensive financial information, ask probing questions, and provide well-reasoned feedback to Staff and Board leadership.
Districtwide Lens
Ensure resource allocation aligns with PGUSD's mission and benefits all students, rather than favoring individual sites or specific programs.
Reviewing Site/Program Requests
Sites and departments regularly request additional staff positions, new programs, and expanded resources—but the General Fund cannot fund every worthy request without creating fiscal imbalance.
Student Learning Impact
Does this request demonstrably advance student learning outcomes and educational achievement?
Broad Benefit
Does it provide meaningful benefit to multiple schools, grade levels, or diverse groups of students?
Funding Type
Is this a one-time investment or ongoing operational need requiring permanent funding commitment?
Planning Consideration
Should this be a planned site expenditure from allocated budgets or appropriate use of donation accounts?
Every Decision Involves Trade-Offs
Funding one priority often means modifying, delaying, or eliminating another important initiative. Our advisory role helps surface potential benefits, unintended drawbacks, and systemic ripple effects of budget decisions.
Monitoring Revenue Changes
Property Tax Planning
PGUSD conservatively plans on 5% annual new revenue growth from property taxes, but actual growth can fluctuate significantly with housing market conditions and economic cycles.
No Automatic COLA
Unlike LCFF districts that receive state-funded cost-of-living adjustments, Basic Aid districts must generate their own revenue increases to keep pace with inflation.
Proactive Planning
Continuously monitor property tax collections, state contributions, and one-time grant opportunities to plan strategically for both opportunities and challenges.
Formulating Strong Recommendations
Thoughtful Analysis
Root all recommendations in PGUSD's strategic plan, district values, and evidence-based best practices for student achievement and fiscal responsibility.
Clear Reasoning
Explain explicitly how recommendations support measurable student success, educational equity, and long-term organizational sustainability.
Documentation
Present comprehensive recommendations to CBO and Board with transparent rationale, supporting data, and implementation considerations.
Community Trust
Help Board weigh complex options while maintaining public confidence through transparent processes and clear communication of fiscal stewardship principles.
Discussion Topics for Next Meeting - Part 1
Given the district's ongoing deficit spending, what guiding principles should we adopt to frame all of our budget recommendations this year?
In developing recommendations, how should we weigh short-term solutions (e.g., one-time savings) against long-term sustainability (e.g., structural deficit reduction)?
What would a responsible and realistic timeline look like for reducing the district's deficit—one year, three years, or longer?
What key financial reports, data, or projections do you need from staff to feel well-equipped to make thoughtful recommendations?
What specific financial reports or data sets would help you better understand the district's current deficit situation?
Discussion Topics for Next Meeting - Part 2
Are there particular programs, departments, or cost centers you'd like staff to provide a deeper analysis of at the next meeting?
What information about restricted versus unrestricted funds should staff prepare to clarify the flexibility of district resources?
Should staff bring forward examples of potential cost-reduction strategies used by similar districts facing structural deficits?
What data would help you feel more confident in prioritizing the top three areas of focus for the 2025–26 budget cycle?