The Berkeley Unified School District (BUSD) has successfully balanced its budget for the 2026-27 school year, but the road ahead is fraught with financial challenges. With a projected deficit of over $7 million for the 2027-28 and 2028-29 school years, the district is bracing for more difficult decisions to maintain its state-required 3% budget reserve.

The district’s financial woes stem from rising salary costs and the expiration of one-time funds. Despite these challenges, BUSD has managed to secure a $4.5 million Student Support and Professional Development Discretionary Block Grant and an additional $194,000 from a slight increase in enrollment.

The Path to Balancing the 2026-27 Budget

To achieve budget balance for the 2026-27 school year, the Superintendent’s Budget Advisory Committee, comprising community members, parents, union leaders, and district staff, worked diligently from October through early spring. Their efforts resulted in a series of cost-cutting measures and revenue enhancements totaling $11.2 million.

The committee’s work was divided into four phases, focusing on eliminating vacant positions, staff layoffs, and consolidation of central office roles. They also explored new revenue streams like block grants and transportation fees. Notably, the district eliminated all nine after-school coordinator positions and trimmed staffing at Berkeley High and Berkeley Tech.

Key Cost-Cutting Measures

Among the significant cost-cutting measures were:

  • Reduced instructional hours in the home-hospital program, saving $75,000
  • Charging $1 per day for students busing from school to non-district aftercare programs, expected to generate about $242,000
  • Reducing printing costs by $867,000
  • Requiring non-union employees earning over $125,000 to take five furlough days next year, reducing expenses by $211,265
  • Changing the district’s website vendor and moving costs to the Berkeley Schools Excellence Program (BSEP), saving $17,000
  • Consolidating wellness staff at Berkeley High, saving $73,324

Contract Negotiations and Salary Increases

Contract negotiations earlier this year between the school district and the Berkeley Federation of Teachers resulted in a 3% salary increase for educators over two years, starting last year. Meanwhile, about 700 non-classroom staff represented by the Berkeley Council of Classified Employees, including custodians and bus drivers, reached a separate agreement for 3% and 4% increases for last year and the coming year, respectively.

The district also faced pushback from families and community members over the reduction of ethnic studies and climate literacy teacher positions. Despite these challenges, deeper personnel cuts, including classroom teachers, were largely avoided. The district issued around 330 notices of potential layoff in March, with all but 21 rescinded by the end of May.

Future Financial Projections

The Berkeley Unified board is scheduled to review the first interim report for the 2026-27 budget in December. This review could significantly impact the district’s budget projections for 2027-2028 and beyond. With a $600,000 deficit projected in its Local Control and Accountability Plan (LCAP) budget, which funds services for high-need students, the district must navigate these financial challenges carefully to maintain educational quality.