Fresno, CA: Rising SPED costs, declining overall enrollment

Aug 17, 2026, NPR Fresno: Fresno Unified shrinks budget gap to start school year, but tough decisions remain

A boost of $52.5 million in state funding gave Fresno Unified School District some much-needed relief amid its budget woes.

An extra $33 million in ongoing funding and roughly $19.5 million in one-time funds cut its projected deficit from $59 million to $23 million this school year. But the additional funding did not stop the district from eliminating hundreds of positions, nor has it resolved the underlying financial pressures driving its budget problems.

As students return to school Monday, the state’s third-largest district must contend with rising special education costs, reduced mental health staffing and a lingering deficit.

And due to external factors such as declining enrollment and rising costs that outpace state funding, the state budget just won’t solve most districts’ money issues, said Michael Fine, chief executive officer of California’s Fiscal Crisis and Management Assistance Team, or FCMAT.

“The state budget’s growing, but we have these other costs locally that are outpacing (funding),” Fine said. . . .

More special education dollars 

Across the country, school districts have seen a surge in the number of students requiring special education services, driven in part by better and earlier identification, a reduced stigma around disabilities, pandemic-era disruptions and increased behavioral or mental health needs.

Fresno Unified identified more students with disabilities and experienced increased expenses as a result. The district’s deficit grew by more than $10 million in 2025-26 because of the special education costs. The deficit was about $77 million in February but had grown to $88 million by May. That contributed to the projected $59 million deficit for the 2026-27 school year.

Fresno Unified needed to hire additional teachers and other qualified staff and add special education bus routes, district spokesperson AJ Kato said.

Many students now require more intensive support, including behavioral intervention, mental health services, specialized transportation and nursing, Fresno Unified special education officials told EdSource.

The state budget will provide Fresno Unified an additional $21 million in dedicated special education funding, helping to reduce its overall budget deficit.

But district officials did not specify whether the extra money will allow the special education department to add services or expand its programs.

Instead, the department is restructuring some positions as the district reduces overall staffing. For students whose individualized education programs, or IEPs, require mental health services, Fresno Unified has moved employees with the appropriate licenses and experience into positions serving those students rather than relying on contracted workers. So, clinical school social workers maintained employment, but as education-related mental health service providers for students with disabilities.

Support remains despite cuts, district says

The district is focusing on what Student Support Services Director Abigail Arii calls “cross-departmental collaboration,” to continue providing mental health and other student support services despite eliminating positions this year.

In May, Fresno Unified finalized hundreds of layoff notices as it worked to close its projected $59 million budget deficit.

Across schools, 229 positions were affected, including counselors, psychologists, campus safety staff and intervention specialists. Mental health positions accounted for a significant share of the cuts. Even after the additional state funds reduced the shortfall to $23 million, those layoffs stood. . . .

Fresno Unified officials say the district faces a growing budget deficit in large part because of declining enrollment and rising operational costs. Enrollment has declined by 2,700 students since 2021-22, and though the district’s funding is tied to attendance, fewer students still means less revenue. Fresno Unified estimates that it has lost $17,000 per student. . . .