San Diego County schools are grappling with significant budget shortfalls for the second consecutive year, as student enrollment continues to decline.
According to budget records reviewed by inewsource, each of the county’s 10 largest school districts is forecasting a financial deficit, resulting in employee layoffs across various positions, such as teachers, counselors, instructional assistants, and liaisons.
Notably, one of the major districts, Poway Unified, accounts for more than a third of the approximately 230 approved layoffs, which reflect the ongoing challenges faced by the education sector.
Despite these budgetary issues, several districts, including San Marcos Unified, Oceanside Unified, and Escondido Union, have authorized salary increases for staff members, as well as board raises in some districts.
For instance, while Sweetwater Union anticipates a staggering $46 million shortfall next year, its board recently approved a 2.75% increase in annual pay for its members. Similarly, Grossmont Union and Cajon Valley have also raised board compensation while predicting deficits of $10 million and $3 million, respectively.
The financial landscape for San Diego schools is expected to worsen, with California facing a projected $12 billion budget deficit.
Laura Pryor, research director at the California Budget and Policy Center, explained that the budget shortfalls stem from lower revenue projections driven by economic conditions influenced by President Donald Trump’s tariffs.
The downgrade in state revenue forecasts has negatively impacted Proposition 98, a crucial funding source that guarantees a minimum financial commitment to TK-14 schools. Currently, this funding allocation totals about $114 billion, down from an earlier estimate of $119 billion.
While the state budget maintains support for most educational programs, the cost-of-living adjustment has decreased from 2.43% to 2.3%, adding pressure to school districts already facing rising costs.
Michael Fine, CEO of the Fiscal Crisis and Management Assistance Team, highlighted the disparity between state funding increases and the actual expenses schools incur, pointing out that while funding per student rises by only 2%, fixed school costs, such as utilities and insurance, typically increase by around 5% annually.
Fine emphasized that, although the state claims to fully fund education, the reality for local districts often feels like cuts instead of maintenance.
In addition to funding challenges, enrollment decline is a key factor contributing to the financial difficulties faced by many districts in San Diego County. Educational funding in California is primarily allocated based on average daily attendance, meaning fewer students result in reduced funding.
State data reveals that approximately 27,000 fewer students, equating to a 5% decrease in enrollment, are currently enrolled in public schools across San Diego County compared to a decade ago. A combination of declining birth rates, soaring housing costs, and a rise in alternative schooling options are among the reasons behind this trend.
Experts anticipate that this decline in student enrollment will persist over the next fifteen years.
Fine underscored the importance of early action from school officials, recommending that they closely monitor enrollment numbers, particularly in transitional kindergarten and kindergarten, which together represent around 8.5% of a district’s total enrollment. He cautioned that a drop in these early grades could signal future enrollment challenges.
Marguerite Roza, director of the Edunomics Lab research center, also pointed out during a recent webinar that districts must be prudent in fiscal management during this time, lest they face further significant layoffs or school closures in the coming years.
“This is not a time to spend down the reserves,” Roza stressed, advising districts to avoid expanding financial commitments that could jeopardize their long-term health.
San Diego County has already seen school closures as a direct consequence of decreasing enrollment. For example, in late May, the South Bay Union School District decided to close three campuses over the next five years following a 50% drop in student population over the past decade.
Officials are expected to submit their budgets for the upcoming school year to the county Office of Education by July 1, as they navigate these challenging financial waters.
image source from：https://inewsource.org/2025/06/17/budget-shortfalls-staffing-cuts-san-diego-county-schools-2025/
