Fresno Unified plans to avoid layoffs next school year and expand transitional kindergarten to all elementary schools over the next two years, district officials said Wednesday.

Superintendent Michael Hanson and Trustee Janet Ryan said they were optimistic about Fresno Unified's future because the district has maintained a healthy cash reserve even in the face of state budget cutbacks for education.

The two spoke inside a transitional kindergarten classroom at Thomas Elementary School in central Fresno.

Transitional kindergarten was championed by former Gov. Arnold Schwarzenegger as a way for children who aren't old enough to enter traditional kindergarten to still be exposed to an elementary school.

But Gov. Jerry Brown announced in January that he plans to scrap the program to help close the state budget gap.

Hanson said the expansion of transitional kindergarten should help the district meet its goal to graduate all students -- making it important enough to do even without the state's help.

Flexibility from the state in spending money that up to now has been restricted to certain programs also has helped the district juggle its finances, Hanson said.

The district's unrestricted general fund reserves of $47.5 million will help avoid many cuts next school year, including layoffs, Ryan said.

However, Greg Gadams, Fresno Teachers Association president, said district officials could still ask for other concessions from unions, such as salary cuts and increases in employee contributions to health care plans. "They haven't pledged not to do that," Gadams said.

The FTA contract expires June 30. When new contract negotiations begin, union leaders will work to protect salaries and health benefits, he said.

Fresno Unified officials said transitional kindergarten -- the district has classes at Thomas and Balderas Elementary so far -- lays a strong foundation, especially in language development, for children when they start kindergarten.

"We know that more time with effective teachers matters," Hanson said.

Hanson said he will recommend to trustees in March an expansion of transitional kindergarten to all elementary schools within the next two years.

Transitional kindergarten was created when Schwarzenegger signed legislation that raised the starting age for kindergarten. The 2010 Kindergarten Readiness Act changed the date by which children must turn 5 to enter kindergarten from Dec. 2 to Sept. 1. The change will be phased in one month yearly over three years starting this fall.

The goal of pre-kindergarten classes is two-pronged -- preparing children for kindergarten and lessening the odds that they will drop out of high school years later, Hanson said.

"We're in the graduation-rate-improvement and early-learning business," he said.

Amber Flores -- whose son, Rossi, attends the Thomas transitional kindergarten -- said she believes children in the class will reap huge benefits. "They're exposed to a classroom setting," she said, "a teacher with years of experience and the curriculum."

If trustees approve Hanson's plan, district officials would decide where the funding would come from, district spokeswoman Susan Bedi said.