Fresno Unified School District is projected to lose nearly $80 million in revenue in the wake of the coronavirus pandemic that shuttered schools and businesses and triggered a national unemployment explosion.

The $79.3 million loss is a “ballpark” figure district staff estimated following Gov. Gavin Newson’s budget revision last week, Deputy Superintendent Ruthie Quinto told The Bee. California is set to lose $54.3 billion, with $7.5 billion of that slashed from K-12 education.

“Nothing like this has ever been experienced before, and so we are certainly bracing for what is to come,” Quinto said during Wednesday’s night school board meeting. The district is projected to lose additional funds for at least the next two years, totaling about $27.4 million.

Quinto said the district is not planning for teacher or staff layoffs, and officials don’t anticipate any employee pay cuts. However, the prospect of staff furlough days – temporary unpaid leave – remains on the table. Employees were furloughed during the last recession that began in the late 2000s.

“I’m not suggesting that is what we would move forward with right now, but it is on the list being contemplated for prioritization when we come back to the board (at the next meeting),” Quinto said.

Fresno isn’t alone. School districts around the state are scrambling to address sudden budgetary shortfalls while figuring out when and how California’s 6 million students will return to classrooms in the COVID-19 era.

Clovis Unified: 8% loss

Clovis schools are set estimating a $30 million loss, about 8% of the district’s roughly $393 million budget, Superintendent Eimear O’Farrell said late Wednesday. The Clovis school board will examine the budget at its June 10 meeting.

“Any cuts that we make we keep as far away from the students as possible, so we keep the learning front and center,” O’Farrell told the trustees.

The grim budget figures for Fresno’s two largest school districts came just hours after California State Superintendent Tony Thurmond said schools need more help from the federal government in the coming months.

“It’s very important for us to receive more federal funding in order to offset those cuts because we believe that our school districts cannot reopen safely if they have to implement these kinds of cuts,” Thurmond told reporters.

Fresno Unified: ‘Difficult decisions’

Fresno Unified officials have stressed that any programs directly affecting its 74,000 students would only be cut as a last resort.

They also noted that while hard cuts are coming to Fresno Unified, the district remains in better shape than some of the state’s other largest districts. Fresno Unified has a financial reserve of almost 10% of its budget.

“When we press for a reserve, this is exactly why,” Superintendent Bob Nelson said. “A lot of our colleagues are facing very, very difficult decisions.”

But exactly where Fresno Unified will cut remained uncertain Wednesday.

The board has considered slashing the gunshot-tracking technology known as ShotSpotter, which the district pays the city of Fresno to support, but no decisions have been made.

In January, the governor proposed funding various K-12 programs and grants; all of them were eliminated besides money for special education. Although there won’t be as much money set aside for special education as the state planned, Quinto said, Fresno Unified and other districts will still be receiving some funds.

But while Fresno will lose special education funding, Quinto said the district could maneuver to leave those programs intact.

“There’s no limitation to us rearranging our resources,” Quinto said. “In fact, it’s what I encourage, that the board set the priorities, and our resources match those priorities.”

The board didn’t make any decision regarding budget cuts on Wednesday night, but on June 10, the board is set to approve the budget for next year. It is also likely the board will have to revise its budget, Quinto said.

The $79.3 million projected loss could fluctuate later this summer after the state’s tax revenues are collected in July. If the HEROES Act is passed, a $3 trillion coronavirus relief bill will provide money to state and local governments, including school districts.

There are some areas where the district is saving money, like in utilities and travel, Quinto said. Positions that have been vacant for more than a year are going to be “scrutinized very, very heavily,” Quinto said. The district is also looking at reducing the budgets for a “handful” of departments that typically underspend.

The Education Lab is a local journalism initiative that highlights education issues critical to the advancement of the San Joaquin Valley. It is funded by donors. Learn about The Bee’s Education Lab on our website.

This story was originally published May 21, 2020 at 9:20 AM.