Pasadena Unified School District Chief Business Officer Saman Bravo-Karimi Thursday, Sept. 11, once again faced the Board of Education with a message of financial warning.
Bravo-Karimi presented the district’s 2024-25 Unaudited Actuals financial data that PUSD is required to file to the Los Angeles County Office of Education (LACOE) during a special meeting Thursday. The unaudited actuals, according to Bravo-Karimi, provide the most current financial data for the completed fiscal year providing a complete picture of the district’s financial status.
The outlook remains murky. For several months Bravo-Karimi has reiterated to the public and Board of Education that significant changes need to be made to make up a structural deficit that sits around $30 million.
He compared the district financials last fiscal year with and without the fire-related revenue from insurance and fire-related expenditures. When the fire-related impacts are included, the district had a general fund unrestricted operating surplus of $38.2 million.
Without the fire impacts, there would be a general fund unrestricted operating deficit of $27.3 million. In 2023-24 the district had an operating deficit of $7.4 million.
“It’s the latter numbers that exclude those fire revenues and expenditures that give the truest picture of our financial status,” Bravo-Karimi said.
He noted that the insurance funds received to date are an advance on a future claim because the district is still working on submitting its final insurance claim.
Trustee Kimberly Kenne advocated to move fire insurance revenue and expenditures from the general fund to a separate fund to give a clearer picture of the district’s finances.
Bravo-Karimi said the district benefitted from having the insurance money in the general fund, which would continue if the funds remained where they are.
“If we don’t make the necessary reductions to bring our budget into balance and then those funds are not in the general fund – this is the worst case scenario – our reserves could go negative next school year,” Bravo-Karimi said. “Our general fund unrestricted reserves would be negative based on current projections by the end of next school year. Maybe it’s self-evident, but school districts aren’t allowed to have negative ending balances, you are in fiscal distress.”
The ongoing financial struggles have been attributed by district officials to declining enrollment, the expiration of one-time COVID-19 relief dollars and increased costs. The financial situation meant that the district was required to submit a fiscal stabilization plan to LACOE along with its fiscal year budget.
In December or January the results of the final audit will be presented to the Board of Education, closing the book on last school year’s finances.
Thursday’s meeting was streamed on KLRN’s YouTube channel.