Uncertain Federal and State Education Funding Triggers Layoffs in Southern Humboldt Unified School District

Southern Humboldt Unified School District (SHUSD) is in the same position as many schools across the nation, facing deep financial cuts as state and federal funding uncertainties force tough decisions, including layoffs, reduced hours for staff, and potential program cuts. With a large operating deficit, the district is eliminating multiple classified staff positions and scaling back teachers and possibly having larger class sizes. School budgets rely on a mix of federal, state, and local sources and shifting political priorities have put crucial funding at risk, threatening to impact students, teachers, and classified staff in the coming year. 

A Nationwide Education Funding Crisis

School districts across the country depend on federal education funding for programs such as Title I (assisting low-income schools), special education grants, and school nutrition programs. However, proposed budget reductions at the federal level threaten these essential services. If Congress moves forward with cuts to Title I or Individuals with Disabilities Education Act (IDEA) funding, schools may have to reduce classroom support, increase class sizes, and scale back specialized programs for students with disabilities.

Additionally, pandemic-era USDA programs that supported free school meals have ended, forcing districts to find new ways to keep students fed. The uncertainty over federal funding has left school boards struggling to finalize their budgets for the 2025-2026 school year, leading to layoffs, program reductions, and difficult cost-cutting measures.

California Schools Face Dual Financial Challenges

In California, public schools rely on a combination of federal, state, and local funding sources, with the majority of money coming from the state budget. Education funding is guaranteed under Proposition 98, which mandates that a minimum percentage of the state budget be allocated to K-12 schools and community colleges. However, when California experiences budget shortfalls—like the current multi-billion-dollar deficit—schools often face delayed or reduced funding allocations.

Beyond state and federal sources, California’s public schools also receive funding from the California Lottery. While lottery funds contribute to education, they are supplemental and do not replace core funding sources. In reality, lottery proceeds make up only a small fraction of a school’s budget and cannot be relied upon to cover major shortfalls.

With federal funding cuts looming and California’s state budget in crisis, many school districts, including Southern Humboldt Unified School District (SHUSD), are taking preemptive measures to stay financially stable.

Layoffs and Reductions at SHUSD

In response to these financial concerns, SHUSD has finalized a Memorandum of Understanding (MOU) on Layoffs and Reductions with the California School Employees Association (CSEA) Chapter #177. The agreement outlines significant staffing cuts for the 2025-2026 school year:

• Layoffs: The district will eliminate several instructional assistant positions, behavior support aides, special needs aides, health aides, food service staff, and office assistants.
• Reductions in Hours: Bus drivers, mechanics, custodians, and grounds staff will see reduced work hours or fewer contracted workdays.

The decision, according to district officials, was driven by both a lack of funds and a decline in work availability due to budget uncertainties. Without guarantees of sufficient state and federal funding, SHUSD—like many districts across California—must make these difficult choices now rather than face deeper cuts mid-year.

In addition to classified staff, the equivalent of four teaching positions will also be impacted. According to Southern Humboldt Teachers Association (SHTA) representatives, the district plans to eliminate half-time art, half-time Spanish, and one full-time elective teaching positions at the high school level. A full-time teaching position at Redway Elementary, along with a half-time position at alternative ed, and a half-time position at one of the outlying elementary schools will also be cut.

Rebecca Robles, President of the Southern Humboldt Teachers Association (SHTA) and a teacher at South Fork High School, explained that the district is facing a $1.9 million deficit, a situation made worse by uncertainties in state and federal funding and rising inflationary costs. Over the past few years, the district has significantly reduced its operating budget deficit without making staff cuts, but this year, the funding challenges are proving more difficult to manage. While Robles believes that Superintendent Sarah Purl and the school board have been doing a good job under tough circumstances and that staff understands the hurdles posed by funding cuts, she expressed frustration that administrators, who earn six-figure salaries, haven’t been asked to take pay cuts. Robles feels this lack of sacrifice from administrative staff creates a divide, undermining the district’s morale and fostering a sense of ‘us vs. them,’ rather than reinforcing the ‘we’re all in this together’ mentality that she believes the district should uphold.

The layoffs and reductions will have major impacts on the school. Robles said it will lead to larger class sizes and less access to electives like art and music that students value. She is also concerned about the loss of instructional aides, which will make it harder for teachers to provide individualized support.

Robles expressed deep concerns about the impact on employee morale, stating that some staff at the Miranda campus that received layoff notices were crying and upset. She worries many experienced teachers will leave the district rather than accept reduced hours or positions further away.

Overall, Robles believes the district’s decisions are short-sighted and will significantly harm the quality of education and the school community in the long run. She advocated for a more equitable approach that asks more from higher-paid administrators.

Ripple Effects on Students and Staff

These staffing reductions will likely have a direct impact on student support services, including classroom assistance, behavioral intervention, and health-related programs. Fewer bus driver hours may lead to longer wait times or changes in transportation schedules, while a reduced custodial workforce could affect school maintenance and cleanliness.

For classified staff, the layoffs mark a significant loss of job security. The district has agreed to reemployment rights and substitute opportunities for laid-off employees, but for many, the prospect of finding comparable work remains uncertain.

Robles shared that Mr. Harold, a teacher in the math department, expressed frustration at the board meeting. He pointed out that the district continues to refer to “us as positions instead of people.”

Custodian John Burke stated, “The school district is a tree severing itself from its roots and expecting to stay up right.”

Concerns About the Food Service Program

In addition to the staffing cuts, Julie Lyon, the SHUSD food service director, outlined potential impacts to the food service program. The district is proposing to eliminate a 1-hour food service position at Whitethorn, with the work being redistributed to other employees. This could result in increased workloads and responsibilities for the remaining staff without added time compensation to ensure students are fed.

Lyon explained that roughly 25-30% of students currently receiving free meals could be significantly impacted if the free meal program is cut. These students come from families facing financial hardship, and without access to nutritious meals at school, they may go hungry. Lyon expressed concern that these students may lose access to the fresh, healthy food provided at school, further exacerbating food insecurity.

While the pre-pandemic free and reduced lunch program may be a viable option for some, in the past, the school has faced the challenge of being required to feed students even if they cannot pay. This often leaves the school covering the cost of the meals without receiving the necessary reimbursement

Teacher and Staff Concerns About Job Security

Tami Bighead, Grievance Coordinator for SHTA, explained that this is the first time in eight years that the district has had to issue widespread pink slips to both certified and classified employees. She emphasized that this uncertainty, especially regarding state funding, is not new, but the stakes feel much higher this time due to the financial challenges and ongoing disruption.

Bighead also pointed out that the uncertainty surrounding state funding, which typically isn’t finalized until May or even July, has forced the district to make these preemptive cuts. She voiced concern that the ongoing reductions will result in larger class sizes, especially in upper grades, and a significant decrease in support staff. With no “fat to trim,” the cuts will directly impact student learning and the ability to maintain basic school operations.

“The people that they want to rehire if they do get their money are not going to have just sat here waiting to hear that,” Bighead said. “They’re going to plan for their lives to move forward.”

Where Does California Get Its School Funding?

California’s K-12 education funding primarily comes from state revenues, which are collected through taxes and other sources. The state’s education budget is largely dictated by Proposition 98, a constitutional amendment that guarantees a minimum level of funding for public schools and community colleges.

Below is a breakdown of where California gets the money that funds schools:

Because California’s education funding depends heavily on income taxes, especially from the wealthy, economic downturns can lead to budget shortfalls. If income tax revenue drops (due to job losses or stock market declines), the state has less money to fund schools. School districts often issue layoff notices (pink slips) in anticipation of funding cuts, even if the state budget is later adjusted.

What Comes Next?

With both federal and state education budgets still in flux, SHUSD is not alone in its difficult decision-making. Across the district, the state, and the nation, school districts are weighing similar staffing reductions, program cuts, and spending freezes as they wait for more clarity on available funding.

Tami Bighead described the situation as dire, emphasizing that immediate action is needed. “[People are] going to have to contact their congressman. I don’t know what else to do,” she said. Education advocates are urging lawmakers to prioritize K-12 funding, and Bighead echoed that call, encouraging those who want to support the district to reach out to their representatives.

Beyond advocating for funding, she urged community members to step up in another crucial way: by volunteering. “They’re gonna have to be able to volunteer at a school … and be consistent and get their fingerprints done… because that’s all we got at this point—bodies in a room.” Families and community members who want to help mitigate the impacts of these cuts can consider giving their time at local schools, ensuring students still have support despite reduced resources.

As federal and state budget negotiations continue, SHUSD and other districts will have to remain flexible, adapting their financial plans based on decisions made in Sacramento and Washington, D.C. For now, though, the message is clear: uncertainty in education funding has real and immediate consequences for schools, staff, and students alike.