CVUSD approves fiscal stabilization plan that includes $25.4M budget reduction over three years

THERMAL, Calif. (KESQ) - More budget cuts are coming to the Coachella Valley Unified School District.

On Thursday, the CVUSD Board of Education approved a fiscal stabilization plan. The plan includes multiyear reductions of $25.4 million — $9.4 million in 2026–27, $8 million in 2027–28, and $8 million in 2028–29

The Riverside County Office of Education (RCOE) required CVUSD to submit an updated, Board-approved Fiscal Stabilization Plan by March 17. According to the board agenda, the plan must incorporate salary and benefit cost projections and address the previously identified $20 million in budget reductions. The projections must include unrestricted funds, along with the detailed assumptions used in developing the plan.

According to the district, the reductions are designed to align spending with enrollment trends and available revenues, while keeping cuts as far from the classroom as possible.

In 2024, the district approved $57 million in budget reductions, which included staffing layoffs and program adjustments. CVUSD officials said in the December that the district was facing up to $20 million in additional budget cuts over the next two years

CVUSD officials added that the Fiscal Crisis & Management Assistance Team (FCMAT) presented from their findings an independent review of the District’s 2025–26 adopted General Fund budget. The review included the development of a multiyear financial projection (MYFP) and cash flow analysis for the current year and two subsequent fiscal years.

While FCMAT reported no immediate cash flow concerns, the agency recommended continued monthly monitoring and emphasized that declining fund reserves weaken a district’s overall cash position. FCMAT also commended the District’s efforts to take necessary steps toward long-term fiscal stability.

Through the approved Fiscal Stabilization Plan, the District continues to address its structural deficit, maintain required reserve levels, and strengthen its long-term financial health.