The Fresno Unified School Board unanimously approved a supplemental retirement plan Wednesday for more than 550 employees, shaving over $56 million over the next five years for the district’s strained budget.

“We will miss the employees who have chosen to take advantage of the supplementary retirement,” said Superintendent Misty Her. “However, being able to move forward with this plan provides greater flexibility in addressing our budgeting needs for the 2026-27 school year and allows us to better align our resources with enrollment.”

Fresno Unified has been dealing with significant budget constraints due to declining enrollment, chronic absenteeism, and the end of COVID-era funding.

In July, the district is facing a $22 million budget deficit, forcing it to ax programs and remove employee positions.

And now, Fresno Unified could potentially close three to five schools due to enrollment issues, a district spokesperson told GV Wire. The district lost 1,100 students this school year and anticipates losing 1,200 next year, district chief financial officer Patrick Jensen said.

The district is projected to save more than $13 million via the approved retirement package.

“Those savings only occur if those employees who retire are not replaced,” Jensen cautioned the board trustees. “As we decline in number of students, we can’t go back to increasing the number of adults in the system.”

Said Superintendent Her: “Our highest priority is retaining our teachers and staff and protecting programs that support our students, and this helps us achieve that goal.”

Bottom line: The district is hoping to cut more than $50 million from the budget over the next two school years.

The Retirement Plan

The number of employees looking to retire blew past original projections with 573 submitting written letters of intent.

The plan, offered through Public Agency Retirement Services, would provide participating employees with a tax-qualified annuity equal to 80% of their 2025/2026 base salary.

Over 1,900 employees meet requirements to be offered the retirement plan: 55 or older with at least five consecutive years of service in the district. PARS had projected that 459 employees would apply.

A majority of those retiring are teachers and school staff, such as bus drivers, custodians, and aides. More than 250 teachers will exit the district at the end of this school year.

“Replacing that knowledge gap is going to be hard and a strain on our system,” said Trustee Elizabeth Jonasson-Rosas. “Bittersweet in that regards, but I’m glad we’re able to do this now and prevent some more painful cuts.”

Fresno Unified has offered four different PARS programs over the past 30 years. The district made a significant offer in 2010, prompting more than 600 employees to participate in early retirement, according to Dennis Yu, executive vice president for PARS.

Now, Fresno Unified will pay out $9,449,003, including the annuities and the PARS fees, every July for the next five years.

Retirees will begin receiving their payments in August 2026.