Fire Insurance Proceeds Increase PUSD Reserves While Core Balance Declines
Pasadena Now reports that Pasadena Unified ended the 2025–26 fiscal year with substantial unrestricted general-fund reserves, largely because of fire-insurance proceeds, while the district’s underlying operating balance continued to decline. The reporting distinguishes the one-time insurance funds being used for Eaton Fire recovery from the district’s ongoing operating finances and classroom-compensation requirements. However the vast majority of PUSD school buildings have never been tested for lead or asbestos or any other fire related contaminant since the Eaton Fire. If AB 1642 is passed into law, it provides guidance for schools on recovery after a wildland urban interface fire that outlines the need for scientific testing for contaminants before re-occupancy.