This page serves as a comprehensive resource for enhanced understanding of our district's budget challenges and the timeline and plan to address them.
Below, you will find communications, board meeting summaries, a timeline of key meetings and required deadlines, and budget-related documents with ongoing updates about the budget and reductions process.
LVJUSD will need to reduce 2026-27 budget expenditures by approximately $14.8M
Communications & Board Meeting Summaries
Links to video recordings of all regular and special board meetings can be found on our Board Meeting Video Archive webpage.
The Budget Working Group (which included the acting superintendent, assistant superintendents, and a leadership representative from each bargaining unit/employee group*) was formed after the February 10th board meeting and charged with developing a consensus recommendation to address the budget shortfall the district is facing for the 2026-27 school year. The task included:
Identifying adjustments within the existing budget that would reduce the total amount necessary reductions.
Reviewing the list of proposed reductions and recommend a positive or qualified budget certification. (Positive certification includes a required 3% reserve; qualified certification is the status associated with less than a 3% required reserve.)
Providing the board with a tiered list of reductions to guide which items should be restored first in the event that additionally funding sources are secured.
The Budget Workgroup met a total of three times on February 12th, 18th, and 20th.
The Budget Workgroup’s recommendations were presented and approved by the Board
(4-1) at the February 24th meeting.
The Board recognizes that work remains as school budgets are largely based upon funding projections from the state, which will not be finalized until late June. Once the final governor’s budget is approved in June, the board and staff will work to develop a plan to address any changes or challenges that arise.
*The Board president and rotating additional board members observed each meeting.
February 18 & 20, 2026 Budget Working Group Summary:
The Budget Workgroup spent two full days collaborating to:
Identify adjustments within the existing budget that would reduce the total amount necessary reductions.
Review the list of proposed reductions and recommend a positive or qualified budget certification. (Positive certification includes a required 3% reserve; qualified certification is the status associated with less than a 3% required reserve.)
Create a tiered list of reductions to guide which items should be restored first in the event that additionally funding sources are secured.
The results of these effort were added to the February 24, 2026 Regular Board Meeting Agenda for board discussion/ action on Tuesday.
Through creative collaboration, the Budget Workgroup made progress on redefining the amount of reductions needed to remain fiscally solvent for the 2026-2027 school year. The workgroup will meet again February 18, 2026 to firmly identify the amount of reductions needed and then shift into discussions that lead to the identification of specific reductions to present to the Board.
The Budget Workgroup includes the acting superintendent, assistant superintendents, and a leadership representative from each bargaining unit/employee group, with the Board president and rotating additonal board members in observation of the work.
Michelle Pechette, Assistant Superintendent of Educational Services, was named Acting Superintendent.
The Board selected Trustees Bueno and Prusso to form an ad hoc committee in search of an Interim Superintendent. Their efforts will begin immediately. They will report back to the Board an community at a future meeting to further the discussion and process.
A Budget Working Group was formed and will include the acting superintendent, all assistant superintendents, and one leadership member of each bargaining unit/employee group. The Board president and rotating additional board members will be present to observe the process. The purpose is to rebuild trust, remove any barriers to information access, and establish an equity of voice in reimagining a plan to address budget reductions that all parties can agree upon. This group will meet on Thursday, February 12.
The next regular board meeting is scheduled for Tuesday, February 24. An additional special meeting may be scheduled during the week of February 16th if needed.
Assistant superintendents and Director of Communications & Engagement presented the Board with summaries of the feedback received from employee groups and staff and parent/community committees as requested at the special board meeting on January 20, 2026.
Board members provided comments and asked clarifying questions, concluding that more discussion and analysis was needed. No decisions were made regarding specific reductions. Budget reduction review and follow-up was agendized for the February 10, 2026 regular board meeting.
It is no secret that we have a tremendous hurdle to climb in order to balance our district’s budget. In less than a month, we will need to identify nearly $15M in reductions for the next 2026-27 school year. This will not be easy, but is necessary to ensure the future health of our district.
As requested by the Board of Trustees, this communication is intended to explain how we arrived at this point and to outline next steps in the budget reduction process. In addition to this email, we have created a Budget Updates & Engagement webpage to serve as a comprehensive resource for ongoing updates, budget timeline, and budget-related documents that provide a more detailed understanding for those who are interested.
How the Budget Looked in December
On December 9, 2025, the Board approved the district’s First Interim Budget. At that time, the district was projected to have a positive budget certification, meaning the district met all financial requirements for the current school year and two subsequent years, including a 3% minimum reserve required by the state.
The budget showed approximately $3.2 million more than the required reserve for 2025–26. While this may appear to be surplus funds, it was already set aside to help cover known budget gaps in future years (2026–27 and 2027–28). Using those funds was necessary to stay financially stable across all three years.
Salary and Benefit Increases
Prior to the District and the Livermore Education Association (LEA) engaging in mediation, the Board of Trustees gave authorization to staff to work towards a deal that would prioritize staff compensation. In December 2025, after mediation, the District and LEA reached a tentative agreement that was later approved by both LEA and the Board. The agreement includes salary and benefit increases for teachers and staff over the next two years.
2025-2026
4% increase to the LEA salary schedules effective January 1, 2026
$1,600 increase toward health and welfare benefits effective July 1, 2025
2026-2027
2% increase to the LEA salary schedules effective July 1, 2026
$3,000 increase toward health and welfare benefits effective July 1, 2026
Because salaries and benefits make up most of the district’s budget, these increases significantly raise ongoing costs. They also apply not only to LEA members, but trigger “Me-Too” increases for other employee groups. In total, compensation changes affect up to 1,472 employees.
Why Reductions Are Needed
Once the approved compensation increases were added to the budget:
Nearly all of the $3.2 million reserve overage will be used in the current year to cover the year one increases taking effect in 2025-26.
To continue paying these ongoing costs and rebuild the required 3% reserve, the district must reduce spending by about $14.8 million for 2026–27.
An additional $1.5 million in reductions will be needed in 2027–28.
Staffing reductions for 2026–27 must be identified before March 15, the state deadline for preliminary layoff notices.
The chart below is a visual representation of how our budget has changed since First Interim and the amount of reductions needed:
Governor’s Budget
Some have inquired about how projected funding in the governor’s budget can impact our local budget decisions. While the governor’s 2026-27 proposed state budget shows continued support for TK–12 schools, significant funding details remain uncertain and will not be finalized before our required budget reduction deadlines. As a result, the district cannot responsibly rely on unapproved or unknown funding beyond the statutory cost-of-living adjustment (COLA) when making required decisions.
Changes to the Reduction Process & Timeline for Next Steps
While the timeline for making decisions about needed reductions remains short, at the Board’s direction, we will:
Seek additional input and analysis from staff and District committees specific to the original proposed reductions.
Create an updated tiered budget reduction plan inclusive of the additional input received with the goal of narrowing down the finalized list of reductions through shared priorities.
Remove school closures from the list altogether.
Continue to freeze all non-essential hiring and encumbrances.
The following public meetings will include budget discussions and decision-making as we continue forward with the very difficult work ahead. Additional meetings can be scheduled if needed.
Week of February 2nd (Date and Time TBD): Special Board Meeting
February 10, 2026 at 6 p.m.: Regular Board Meeting
February 24, 2026 at 6 p.m.: Regular Board Meeting
Board will vote to approve finalized reductions
How to Stay Engaged
Bookmark our Budget Updates & Engagement Webpage: We will provide ongoing updates, board meeting summaries, a timeline, and supporting documents to keep you informed throughout this process.
The Board engaged in discussion to provide additional direction to the superintendent regarding the reduction decision-making process. This direction included:
Engaging in meaningful collaboration with assistant superintendents, directors, principals, and bargaining units to better understand proposed reduction impacts and other possible reductions not already identified.
Seeking input on budget reductions from district committees: LCAP, PCIC, DELAC, Budget Advisory Committees, and Special Education Parent Advisory Committee.
Creating a tiered budget reduction plan based upon the input from the educational partners mentioned above, with the goal of narrowing down the finalized list of reductions through shared priorities.
Removing school closures from the reduction list as the Board determined this was not viable
Freezing all non-essential hiring
Freezing all non-essential encumbrances/ expenditures
Providing email communication to the community that explains how the district arrived at its current budgetary position, the amount of reductions necessary to balance the budget with a 3% required reserve, and a list of any special and regular board meetings that will take place prior to finalizing reductions at the February 24th regular board meeting.
Creating a budget update webpage with timelines, communications, and supporting documents related to current and future budget decision-making. This page will also include a summary of how the district will factor in projections of the governor’s budget that will not be finalized prior to our district’s budgetary deadlines.
The Board approved the Tentative Agreement with the Livermore Education Association (LEA). The approved agreement results in salary and benefit increases for all LEA members, and activates collective bargaining “me-too” compensation increases for CSEA and SEIU members and board-approved increases for CM/C and LMA members.
After listening to public comment on Agenda Item 14.6 (2026-27 Budget Prioritization), the Board voted to table the item and revisit the topic of budget reductions at a special board meeting the following week.
Our strong commitment in our continued negotiations to prioritize our employees who dedicate themselves every day in supporting our students requires us to rethink and reimagine aspects of the district’s spending. This includes careful analysis of our priorities and some very tough decisions in advance of legally required timelines related to reductions of positions or reassignments of employees.
As Board President, I felt that it was important for the Board to meet and begin these discussions as soon as possible. Unfortunately, not all board members could attend an evening meeting this coming week and I proposed the idea of a Monday morning meeting. In retrospect, and based on feedback we received, we believe it is critical that these discussions occur in a meeting that allows as many of our employees and community members to attend as possible. Therefore, the Board will hold off on discussing potential budget reductions until our next regularly scheduled evening meeting on January 13th.
The Board directed Superintendent Gibson to create a preliminary list of budget reductions for the Board’s consideration and it is attached below. Additionally, I have reached out to our employee unit (LEA, CSEA, CMC, LMA and SEIU) leaders for feedback and input. Broadly speaking, by February, the Board needs to make decisions on how to reduce our district’s budget by approximately $11 million dollars for the 2026/27 school year; another $5.2 million in reductions will need to be identified by next February for the 2027/28 school year. Even with the $11 million budget reductions for 2026/27 and the $5.2 million for 2027/28, the district will still fall below the required 3% minimum reserve requirement set by Education Code, and could face additional cuts in 2028/29 if funding from the state does not fill the gap.
If you are able, please read over the document and share any alternative recommendations or ideas by emailing me, the superintendent, or through formal board correspondence. Between now and January 13th, board members will be individually reviewing these recommendations to seek clarification in preparation for discussion at our next regular board meeting. Our next steps will include the following:
January 13, 2026: Regular Board Meeting at 6 p.m.
The Board will be provided with the minimum to maximum reductions cost, review the preliminary reduction list in public, ask for clarification from staff, and provide direction as to next steps. Feedback and direction from this meeting could yield a second reduction draft reductions list from district staff with the need for an additional Special Board Meeting.
January 29, 2026: Regular Board Meeting at 9 a.m.
No discussion of the proposed budget reductions will take place during this regularly scheduled meeting.
February 10, 2026: Regular Board Meeting at 6 p.m.
Staff will need to bring a formal, legally required, resolution to the Board for formal action and approval in order to meet the March 15th notification deadline. A second interim budget report will also be presented to the Board as required by Education Code.
We will continue to seek feedback and input from our employees and community members as we evaluate our spending priorities and make a plan for the future.
Steven Drouin, Ed.D.
Board President
Livermore Valley Joint Unified School District
We are pleased to share that after more than 14 hours of mediation, our District and Livermore Education Association (LEA) bargaining teams reached a tentative agreement in negotiations. Once ratified by the LEA unit members and approved by our Board of Trustees, the agreement will result in increased compensation and benefits over the next two years.
2025-2026
4% increase to the LEA salary schedules effective January 1, 2026
$1,600 increase toward health and welfare benefits effective July 1, 2025
2026-2027
2% increase to the LEA salary schedules effective July 1, 2026
$3,000 increase toward health and welfare benefits effective July 1, 2026
The tentative agreement also increases salary and extends the work year for some special education positions.
Both our District and LEA teams worked tirelessly with the State-appointed mediator throughout the day and evening to reach this agreement. We are grateful to the members of both teams who remained focused on the goal of resolving these negotiations. Their commitment, patience, and unwavering focus on the shared goal of a resolved agreement is truly commendable.
We look forward to continued collaboration and partnership as we move forward together.
Bookmark this webpage: We will provide ongoing updates, board meeting summaries, a timeline, and supporting documents to keep you informed throughout this process.
