Cypress School District Considering Layoffs to Balance Budget

The Cypress School District announced it is considering a plan that would include laying off teachers and classified staff due to projected budget shortfalls.

In a statement released Jan. 16, the district said it balanced the budget this year by using $3 million in one-time funds. Looking ahead, it anticipates having to close a $3.3 million budget gap for the 2026-27 school year.

District staff are expected to present a proposed budget reduction plan at the Jan. 20 meeting of the Board of Trustees.

"The district is committed to fiscal stability while at the same time maintaining important programs and services for students," the statement reads. The statement includes the names of all five board trustees and Superintendent Ann Silavs.

The district said about 83% of its budget goes toward staff salaries and benefits so most of the cuts will come from eliminating positions. According to the proposal (see images below), the district is considering cutting 19 certificated positions, including several teaching jobs, for estimated savings of more than $1.6 million. The district is also proposing eliminating more than a dozen classified positions to free up more than $1.2 million.

"Budget cuts of this size are not easy," the district's statement reads. "The positions proposed for elimination or reduction all provide valuable services, and the employees who provide these services are skilled and caring people who are dedicated to our students." 

Spotlight Schools reached out to the Association of Cypress Teachers via Instagram and will update this story if a representative responds.

State law requires the district to formally issue preliminary layoff notices to affected employees by March 13. The district anticipates action on the budget reduction plan at the February 12 meeting of the board but states that, "if more funding becomes available or costs decrease, some layoff notices may be rescinded."

A final list of layoffs for the 2026-27 school year is expected to be up for board approval in May. "Affected employees will be placed on a 39-month rehire list and will have opportunities to be substitutes," according to the district.

The district points to declining enrollment as a reason for the financial struggles. It's an issue many districts in Orange County and across California are experiencing. "With fewer students, the district’s projected funding does not keep pace with the rising cost of continued operations each year," reads the district's statement.

The Cypress School District operated 12 schools and served nearly 8,000 students from the cities of Cypress, Buena Park, and La Palma at its "peak in 1970," according to its website. The district has seen enrollment decline over recent years, amounting to a loss of nearly 300 students between the 2020-21 and 2024-25 school years, according to EdData. The district currently serves around 3,200 preschool through sixth-grade students at six campuses.

Public acknowledgment of the budget problems dates back to October 2025 when district staff told trustees there was "higher than expected spending in 2024-25."

At the December 11, 2025 board meeting, trustees approved the 2025-26 First Interim Budget Report with a "qualified" status, indicating the district "may not be able to meet its financial obligations in the current or subsequent two fiscal years."

More information is expected to be shared at the January 20 meeting. The district released the timeline below to outline the process ahead.

"As we move forward, the district remains committed to making thoughtful, strategic decisions that prioritize student learning while maintaining fiscal responsibility," the district wrote. "We appreciate the community's understanding and support during this challenging time."