Board Approves Year-End Financials as One-Time Safety Net Runs Dry

The Cabrillo Unified School Board closed the books on a fiscal year that landed close to projections — but the cushion is thinner now. With the one-time Fund 40 transfer that propped up the budget effectively spent down to $80,000, board members signaled that the district's structural deficit spending must be confronted before reserves erode further. In a busy Sept. 10 meeting, the board also selected a contractor for its multi-phase high school rebuild and contracted two outside agencies to fill special education vacancies it could not staff internally.

• Year-end financials approved with $5.88M in combined reserves, but Fund 40 — the one-time fiscal lifeline — is now exhausted
• Rodan Builders selected to lead Half Moon Bay High School rebuild through a $60K preconstruction contract
• Two outside agencies contracted to fill special education vacancies approaching legal caseload caps
• $290,600 approved for electric bus charging infrastructure, partially funded by state grant
• Board endorses resolution supporting Proposition 3, which would make permanent income tax rates funding schools
• October 22 study session announced on elementary school fields and facilities master plan

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Fund 40 Is Gone: District Confronts Deficit Spending Head-On

Why it matters: Cabrillo Unified is a community-funded district, meaning local property taxes — not state per-pupil funding — drive the budget. With the one-time $3.5M Fund 40 transfer that softened prior shortfalls now nearly depleted, the board must find structural savings or risk burning through its remaining $5.88M in combined reserves.

Where things stand: Staff member Jennifer Marsh, finance staff, presented the 2025-26 unaudited actuals — the final accounting before the independent audit — showing unrestricted general fund revenues of approximately $38.2M and expenditures of approximately $31.15M, both close to June estimates. The combined general fund ending balance sits at approximately $6.43M, with $5.88M in combined general fund and Fund 17 reserve resources.

Property tax revenue grew 2.32% year over year but came in roughly $51,000 below the P-2 estimate and below the 3% growth assumption baked into multi-year projections. A $190,000 fair market value adjustment was reclassified from current-year revenue to a beginning fund balance audit adjustment. Enrollment declined by 58 students to 2,504, with another 21-student drop projected for 2026-27. Because the district is community-funded, enrollment doesn't drive revenue directly, but it affects how staff are deployed.

Vice President Peter Cerneka sounded the alarm. "A big component of this year's budget was Fund 40. Without Fund 40, we would have been in a much different situation. Now Fund 40 has $80,000 left, so we basically exhausted that fund. So it's, in some ways, it's a wake-up call," he said, pressing staff on whether projections are conservative enough and what paths exist out of deficit spending.

Superintendent Dr. Ramon Miramontes pushed back on the idea of lowballing estimates, warning it could undermine negotiations and transparency. "One of the things I don't want to do is lowball it and say, hey, we're only going to get a 1% property tax. And we negotiate with our partners and lo and behold, we get a 7%. And then the transparency where people say, hey, wait a minute, you did not tell us that," he said.

Marsh outlined next steps: position control reviews, prioritizing restricted funds for current staffing, enrollment monitoring, and ensuring the district's $2.1M in one-time funds are used only for one-time purposes. "We're going to start working on position control again and making sure that we're using our restricted funds first for the current year, staffing and enrollment projections," she said, noting the district would already be looking ahead to March 15 notices by December.

What's next: The Budget Advisory Committee meets Oct. 6. First interim financial projections come to the board in December.

Decisions: Approved 5-0 (voice vote).

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Rodan Builders Tapped for High School Rebuild

Why it matters: The lease-leaseback agreement effectively picks the contractor who will oversee the district's largest capital project — a multi-phase rebuild of Half Moon Bay High School. Though the initial authorization is just $60,000 for preconstruction services, the decision locks in a long-term construction partner.

Where things stand: Facilities staff member Drew presented a 64-page report walking the board through a competitive best-value process in which four prequalified firms submitted proposals and were interviewed. Rodan Builders was selected for preconstruction services across three phases: Phase 1 ($10,000) for temporary housing, Phase 2 ($35,000) for pool and Building G, and Phase 3 ($15,000) for Building A. The lease-leaseback delivery method allows the district to build guaranteed maximum prices from competitive subcontractor bids, with each phase's GMP returning to the board for separate approval before construction begins.

Vice President Cerneka made the stakes explicit: "Although this vote is for a relatively small amount of money, tonight's vote in effect is a vote to select the contractor for the duration of the high school project, because my read on it is it would be unlikely for us to change horses midstream." Drew confirmed the district retains the contractual ability to walk away with 30-day notice if needed.

Cerneka also pressed on construction audit oversight. Drew explained the citizens bond oversight committee conducts annual audits through a professional firm, reviewing procurement compliance, bond language adherence, and regulatory requirements. "From the Citizens Bond Oversight Committee perspective, they're making sure that the way in which the district is using bond funds corresponds with what was in the actual language of the bond," Drew said.

Board Clerk Breanna Lafontaine, who serves on the oversight committee, emphasized the construction auditor's role in ensuring fair pricing. Drew noted two vacancies on the citizens bond oversight committee: a senior citizens' organization representative and a taxpayer association representative.

Decisions: Resolution 12-2026 adopted 5-0 (roll call).

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Special Ed Staffing Crisis Forces Two Outside Contracts

The basics: A resource specialist position split between Hatch Elementary and El Granada Elementary has been vacant all year. A second unexpected vacancy opened at Half Moon Bay High School, where no district substitutes hold special education credentials.

Why it matters: Special education caseloads at Hatch and El Granada sit at 26 and 25 students, approaching the 28-student legal maximum. Without qualified staff in place, the district risks falling out of compliance with federal requirements to provide a free appropriate public education (FAPE) to students with disabilities.

Where things stand: The board approved separate contracts with Emmett Learning LLC (for the Hatch/El Granada split position) and Every Special Child LLC (for the high school vacancy). Superintendent Dr. Ramon Miramontes described both as likely one-year arrangements and praised the HR department. "This is our HR group, first-year hiring. They're all new in the HR department. They did a great job. I think this is just going to be a one-year thing," he said, noting the contracts can be terminated with 30-day notice if qualified candidates are found.

Decisions: Emmett Learning LLC approved 5-0 (voice vote). Every Special Child LLC approved 5-0 (voice vote).

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Los Listos Preschool Near Capacity; Expansion on the Horizon

Why it matters: With 43 of 45 state-contracted preschool spaces filled and a waitlist, expanding access could serve more families and strengthen early identification of special needs across the Coastside — but it would require a new state contract and additional staffing.

Where things stand: Graciela Kravenschmidt, Early Learning Educator Supervisor at Los Listos Preschool, presented the program's structure. The preschool operates under a California State Preschool Program contract for 45 part-day spaces, running morning inclusion classes with an 80/20 ratio — 80% general education students, 20% students with IEPs — and afternoon wraparound services for TK and kindergarten students. A separate Special Day Class preschool operates in the afternoon serving four students whose needs exceed what the inclusion model can accommodate.

Board President Lizet Cortes raised concerns about parent engagement fading as families transition from preschool to elementary school. "I think it's so essential that there is a transition plan in place because, like you said, these parents are feeling very welcome, very supported, and we need to keep that momentum and not let it get lost in the numbers," she said. Kravenschmidt confirmed the trend and expressed interest in building a parent-to-parent guidance system.

Superintendent Dr. Ramon Miramontes signaled interest in opening a second site. "We've got 2 portals that were just dropped there for the construction, and they have restrooms in them," he said of the El Granada campus, adding that the state would welcome expanded preschool enrollment.

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Board Backs Proposition 3 Tax Extension

At the request of John Carey, President of the Cabrillo Unified Teacher Association, the board adopted Resolution 13-2026 in support of Proposition 3, which would make permanent the existing voter-approved income tax rates on higher income earners currently set to expire in 2031. Revenue from the proposition funds public schools, community colleges, healthcare, and other state programs.

Board Clerk Breanna Lafontaine expressed emphatic support. Staff reminded the board that Board Policy 1160 prohibits urging voters to vote a specific way — only allowing the adoption of a position.

Decisions: Resolution 13-2026 adopted 5-0 (roll call).

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Minor Items

• Electric bus charging infrastructure: Board approved $290,600 for charging stations, commissioning, warranty, maintenance, and five years of FleetBox software. A $150,000 ZESB (Zero-Emission School Bus) grant covers roughly half the cost; the remaining $140,000 comes from district funds. Approved 5-0.
• GANN limit resolution: Board adopted Resolution 11-2026, the routine annual state-required resolution setting the district's appropriations limit under Proposition 4. Clerk Lafontaine researched and explained the technical requirement, noting school districts effectively have no spending cap despite the mandated calculation. Adopted 5-0 (roll call).
• Consent agenda: Approved 5-0 (roll call).
• Public comment: Parents Christina Baker and Lindsay Diggs praised school leadership and special education support across the district, with Baker highlighting counselor Victor Guzman's impact on her daughter's academic turnaround at Cunha.
• Student board member report: Jamie, student board member from Half Moon Bay High School, previewed homecoming activities and spotlighted athletic trainer Crystal Dos Santos for her care of student athletes. The Pilarcitos High School student representative was absent due to illness.
• CUTA report: John Carey, CUTA President, reported the union is negotiating leave of absence and transfer policies under the current three-year contract. He flagged concerns about a healthcare consortium change and its long-term cost effects, and disclosed a whooping cough exposure at the high school.
• Healthcare costs: Vice President Cerneka flagged projected healthcare cost increases of 10–15% next year as a budget pressure point during board reports.
• AB 1204: Clerk Lafontaine reported that AB 1204, which would have adjusted LCFF funding for high-cost areas, died in the legislature.
• Reclassification: Lafontaine noted seven students were reclassified at Hatch out of 67 English learners, expressing hope for a larger number in the spring.

Looking Ahead

The board announced an Oct. 22 study session on the facilities master plan and elementary school field improvements. Vice President Cerneka invited community input now: "If you have opinions or thoughts on what should be done at the fields at any of the elementary schools, reach out to us, reach out to the staff, reach out to the site leadership." The Budget Advisory Committee meets Oct. 6, with first interim financials expected in December.