VCUSD Launches Budget Stabilization Plan to Protect Classrooms and Secure Financial Future

VALLEJO, Calif. — Vallejo City Unified School District (VCUSD) has launched a districtwide budget stabilization plan to preserve core educational services, prevent state intervention, and restore long-term financial stability.

Foreseeing the financial challenges, the district began implementing the plan after its second interim report for the 2024–25 fiscal year received a qualified certification. The report projected a $15.5 million structural deficit by 2026–27 and identified rising operational costs and declining enrollment as significant financial pressures. District leaders warned that VCUSD could face insolvency and state control without immediate action.

This work unfolds alongside the district's ongoing phase 2 of school closures and consolidation. The district is reviewing underenrolled and underutilized school sites to reduce fixed costs, improve program offerings, and address widespread under-enrollment that affects nearly every campus.

Assistant Superintendent of Business Services and Operations Rubén Fernández said the budget plan and the consolidation process share a common goal: to stabilize the district's finances while unwaveringly preserving the quality of its education.

"This is about protecting classrooms and restoring fiscal health," Fernández said. "We must reduce spending across the system, including staffing, to remain solvent and ensure that resources go where they are most needed."

In addition to cost-cutting, district leaders stressed the importance of increasing revenue, and one of the most direct ways to do that is by improving student attendance. VCUSD receives most of its state funding based on average daily attendance (ADA), not total enrollment. Every day a student misses school, the district loses some of that funding.

"Getting our students to school every day isn't just about learning," Fernández said. "It's also one of the most powerful ways our community can help stabilize our schools financially. Engaged, daily attendance strengthens our budget and supports long-term academic success."

District officials emphasized that improving attendance requires engaging classrooms, supportive environments, and strong partnerships between schools and families.

As part of the budget stabilization plan, the district froze unrestricted general fund discretionary spending for the 2025–26 school year at the district office and all school sites. Departments and schools may only use unrestricted general fund dollars for compliance-related, safety-related, or essential operational costs. Leaders encouraged staff to use restricted funding sources such as Title I, Local Control and Accountability Plan (LCAP), and Equity Multiplier funds to support essential services.

To further reduce costs, the district implemented a targeted hiring freeze for all general fund–supported positions. The freeze applies to instructional aides, specialists, noon duty supervisors, part-time support staff, and classroom teachers hired beyond required staffing ratios. VCUSD's executive cabinet members will review authorized and vacant positions monthly to ensure staffing levels reflect student enrollment and verified program needs.

Staffing reductions will be key in addressing the district's budget shortfall. Officials will use projected enrollment data to assign staff before the school year begins and adjust those allocations during the first two weeks of school based on confirmed attendance. These adjustments may include reassignments or reductions, depending on actual student counts. Fernández said the process ensures equitable staffing and responsible use of limited resources.

In another cost-saving move, the district will endeavor to reduce its reliance on contracted special education providers. VCUSD is actively recruiting in-house staff to take over services previously delivered by third-party vendors, a move expected to save money while maintaining service quality.

To support the plan's implementation, VCUSD will begin hosting monthly budget meetings with school site leaders and department heads in August. These sessions will help teams monitor expenditures, track hiring activity, and report progress toward savings targets, keeping the community informed and involved. The district will also provide updated budget templates, protocols, and timelines to support accurate and responsible financial management.

Fernández said the business services office will collaborate with human resources, educational services, and school administrators to monitor staffing, guide expenditures, and oversee the transition of special education services. District leaders will continue developing strategies to recover revenue and improve financial performance.

This fall, VCUSD will roll out an electronic timesheet system to improve payroll accuracy, automate approval workflows, and enable real-time budget tracking. The district will also introduce a position control system requiring all staffing requests to align with approved positions and verified funding.

District leaders plan to adopt several recommendations from a recent fiscal review. These include consolidating underutilized programs, enhancing long-term budget forecasting, strengthening internal reporting, and increasing financial transparency through dashboards.

Fernández acknowledged the challenges ahead but emphasized the importance of staying focused.

"We know this transition won't be easy," he said. "But if we work together with clarity and purpose, we can stabilize our finances and stay focused on what matters most—our students."