In a statement released this week by the Cypress Elementary School District, they are looking for ways to shore up budget holes of as much as $3 million.
The statement said “as you may recall, in October the district provided an update on its finances after the end of the 2024/25 fiscal year. That update highlighted higher than expected spending in 2024/25. At that time, we committed to sharing more information as it became available.”
The information is now available, and the Cypress Board of Trustees have no choice but to look at cuts.
“On December 11, 2025, the Board of Trustees received a budget update – one of two that are required each fiscal year. That report estimated that this year’s budget will require the use of about $3 million in one-time funds in order to balance the budget. The December report also included a projection for the following two years. In that forecast, the district identified the need for $3.3 million in ongoing budget cuts for the 2026/27 year,” according to the statement.
“Even with these cuts, and some more reductions in 2027/28, the district was unable to certify it would be able to meet its obligations over the next three years. For that reason, the district certified its budget as “qualified.”
Courtesy photo
On Tuesday, Jan. 20, district staff was scheduled to present to the Board a proposed plan to address the budget gap. The district spends about 83 percent of its budget on staff salaries and benefits. Because of this, the proposed plan includes the reduction or elimination of positions. There are also plans to reduce outside services and materials and supplies budgets. A full list of the proposed reductions is expected to be included in the presentation to the Board.
The challenges the district faces related to declining enrollment are similar to what the most districts throughout California are facing. With fewer students, the district’s projected funding does not keep pace with the rising cost of continued operations each year.
State law requires the district to provide preliminary layoff notices to affected employees by March 13 if reductions are to take effect for the 2026/27 fiscal year. That requires action by the Board of Trustees at the February 12 meeting. Between March and May, the district will continue revising its budget projections. If more funding becomes available or costs decrease, some layoff notices may be rescinded. In May, the Board will be asked to approve a final list of layoffs. Affected employees will be placed on a 39-month rehire list and will have opportunities to be substitutes in the district, the board statement said.