Many areas of California are experiencing declining enrollment due to lower birth rates and young families moving to locations with less expensive housing. A decline in student attendance results in reduced future revenue to budgets already impacted by the reduction in state revenues and the end of federal and state COVID relief funding in January 2025, putting immense pressure on school districts to reassess their staffing needs. March 15, a pivotal point in the academic calendar, becomes critical for decision-makers to re-evaluate staffing levels based on evolving financial constraints and student enrollment trends.

Governance teams shoulder the responsibility of steering educational institutions through these rough waters. Their primary mandate is to ensure the district’s financial health while maintaining a commitment to academic excellence. In times of budgetary constraints and shifting demographics, governance teams become the linchpin in determining the fate of staffing positions as they grapple with the delicate balance between fiscal responsibility and the quality of education provided to students. Reductions in staff through layoffs or cuts to salary can have instructional and operational consequences and create morale and retention problems for the remaining staff.

Recommendations from the superintendent must be reviewed carefully to ensure savings and to evaluate consequences for the instructional program. Some incentives, like early retirement packages, work by replacing higher-paid staff with those lower on the salary schedule, but if a staff member is going to retire anyway, the program can cost more than it saves.

One of the hardest parts of governing is facing the real-world difficulties of staffing cuts. Whether in a large urban setting, a small rural district or any size in between, board members may find themselves face-to-face with certificated or classified staffers in the community at risk of layoffs. Additionally, it may be difficult for the community to understand when March 15 notices are necessary when the narrative about unprecedented funding levels in the wake of COVID relief funds remains prevalent.

From experience, we know you must ask about the need for a reduction in staff, listen and trust the leadership’s financial information and compliance with the laws that guide reductions in force. Some recommendations from CSBA Governance Consulting Services faculty are:

• Maintain open and honest communication between staff and the board throughout the process.
• Ask about the effect of staff reduction on class sizes, other working conditions and student learning.
• Understand how current board policies and collective bargaining agreements guide the process.
• Familiarize yourself with the method for appeals by employees if they believe there has been an error in the staff reduction process.
• Clarify employees’ right to return to work if conditions improve.
• Communicate clearly with the community about how the timing of Elementary and Secondary School Emergency Relief (ESSER) funding’s end, state budget projections and declining enrollment impact local budget projections.
• Demonstrate compassion for employees who are impacted by the process.

After collecting all this information, use it to make prudent decisions for student learning and the school district. Working with the staff, community and leadership can make a difficult situation bearable.

Governance team members’ ability to remain purpose-focused even during difficult times is incumbent upon their trust in their superintendent. Knowing that the superintendent’s updates on personnel-related matters are accurate, thorough and timely gives board members confidence in the process. Equally as important is a governance team that embraces transparent communication about these complex realities with the community. A communication plan, including stakeholder input, should be implemented early so the community is aware of the issues and recommended solutions.

If layoffs are necessary, planning is essential. State law requires layoff notices to be approved by board action and sent to employees before March 15, so the process for determining the order of layoff and ensuring all procedural requirements are met must be started months in advance of that date. In all cases, boards need to consult with legal counsel. There will be no savings if timing mandates or procedural issues interfere with implementing the superintendent’s recommendations.

• BP 4117.3 – Personnel Reduction (certificated staff)
• BP 4217.3 – Layoff/Rehire (classified staff)