Santa Ana Unified could lay off 350 teachers due to $180 million deficit ...Middle East

About 350 teachers, counselors and other school employees in Santa Ana Unified School District are at risk of losing their jobs in 2025.

The district — the second largest in Orange County — is facing a spending deficit of over $180 million.

With declining enrollment and COVID-19 relief funds drying up, SAUSD’s school board voted 4-1 on Thursday, Dec. 19, to move forward with its financial plan to help the district close the spending gap, which includes the possible layoff of 350 people. 

The district, in its financial plan resolution, has proposed dismissing no fewer than 160 teachers, 57 counselors, 55 instructional coaches, 15 curriculum specialists, 21 itinerant teachers, 16 special assignment teachers, nine social workers, five home hospital workers and four senior social workers.

Instructional coaches and curriculum specialists help schools develop materials to teach students. Itinerant teachers travel to various schools to provide support to students with disabilities and other needs.

When students are unable to attend school, a home hospital worker will teach them the materials in their home. Senior social workers provide mental health support and services to students.

Ron Hacker, the district’s associate superintendent and chief business official, said creating a financial plan without considering layoffs was nearly impossible to do. Employee salaries and benefits make up 80% of the district’s budget, he said.

“We’re attempting to dig as deep as possible in cuts that are away from people,” Hacker said. “But given the size of the structural deficit — we’re approaching $180 million this year — given the size of that, there is really no way to do it without reducing positions.”

Hacker said the possibility of layoffs has been in discussion for years, and the superintendent’s office has worked to alert school employees about it through town hall meetings.

In 2021, SAUSD received $308 million in pandemic relief money from state and federal funding. At the time, it accounted for 22.5% of the district’s budget.

California schools also receive funding based on average daily attendance.

According to Hacker, in the 2018-19 school year, the district had nearly 47,000 students enrolled. During the current school year, enrollment has dropped to just over 36,000.

Newly elected Trustee Valerie Magdaleno attributed enrollment issues to families not being able to keep up with the cost of living in Santa Ana.

“Majority of these fiscal challenges are the result of declining enrollment in the Santa Ana Unified School District,” Magdaleno said. “This issue has not been unique; many districts are facing challenges with it.”

California Department of Education data shows enrollment dropped from 441,249 students to 437,276 this academic year in Orange County as a whole.

Magdaleno was the lone vote against the resolution, saying more information about how the layoffs would impact class sizes and overall campus operations is necessary.

Magdaleno said she would like to see SAUSD Superintendent Jerry Almendarez partner with the city to use district resources to help facilitate more affordable housing.

The district had also proposed a 3% increase in salary and benefits for Almendarez. In 2022, he received $447,561 in pay and benefits.

However, SAUSD Board President Hector Bustos pulled the agenda item during the Dec. 19 meeting, and the board did not vote on the proposed salary increase for the superintendent.

A SAUSD spokesperson could not be reached for comment.

Hacker said if the board does not approve the financial plan resolution, it would raise more problems, such as the Orange County Board of Education taking over the SAUSD’s budget decisions.

He also said the district’s financial troubles could lower its credit rating, meaning if the district issues bonds, interest rates would be higher. He said this would be a burden to taxpayers and also limit what the district could do with the funding.

Bonds work similar to loans. The debt is paid back by adding an assessment to local property taxes. School districts use the funds for school projects but can’t use them for teacher salaries.

In November, voters OK’d a $355 million bond measure to fund the replacement of temporary classrooms with permanent ones, upgrades to heating and cooling systems, learning technology and more.

Bustos tearfully said that layoffs are not a decision taken lightly, and he did not want to be responsible for letting the OCBE take over Santa Ana Unified finances.

“To our families, students and staff, I understand that this decision might cause anxiety or concern, rightfully so, but I want you to know we are going to remain committed to the well-being and success of every single one of our students here at SAUSD,” Bustos said. “Like I have said and have continued to say, this is not an easy decision, but it’s a necessary one as we move forward.”

Hacker said that the trustees’ votes aren’t locked in for the layoff resolution that will be presented next year — meaning a trustee who voted in favor of moving forward with the financial plan could vote against the layoffs later.

SAUSD’s school board is expected to be presented with the layoff resolution in late January or early February, Hacker said.

The next regular school board meeting is scheduled for Tuesday, Jan. 28, at the district’s W.H. Spurgeon Administration Center at 1601 E. Chestnut Ave., in Santa Ana. Meetings begin at 6:30 p.m., and they are streamed live online at sausd.us.

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