Coachella Valley Board Outsources Medi-Cal Billing Over Union Objections, Fraud Dispute Flares

The Coachella Valley Unified School District Board of Education on Oct. 22, 2026, approved an $84,000 outside staffing contract for Medi-Cal billing. Union leaders called it union-busting, and staff said it would pay for itself. Around that vote, trustees argued in public over a fraud accusation against an employee, a stalled AI proposal and decades of deficit spending, a few weeks before an election that several trustees referenced.

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• Medi-Cal billing contract with Sunbelt Staffing approved, with Vice President Garcia and Trustee Acuña voting no
• Employee demands an apology after a trustee said his hours "looked like fraud"; the superintendent says complaints belong with HR
• AI literacy proposal stalls as trustees split over a vote versus a policy committee review
• Board president reviews 26 years of audits and points to a long-running structural deficit
• Two gas buses at $236,547.47 each approved, 5-1, mostly with expanded learning funds

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Medi-Cal Billing Contract Passes Over Labor Pushback

Why it matters: The vote turns a former in-house classified duty into an outside staffing contract. Staff argued the district is leaving hundreds of thousands of dollars in Medi-Cal and transportation reimbursement uncollected.

Where things stand: The item, consent item J11, hires Sunbelt Staffing for Medi-Cal clerical work. A trustee pulled it from the consent calendar for a separate vote.

During public comment, Bianca Lumalai, a public commenter, broke down the cost. She described it as $60 an hour, 8 hours a day for 175 days, or $84,000. She also raised several questions:

• Whether staff compared the cost against doing the work in-house
• Whether staff consulted CSEA Chapter 109, the classified employees' union
• Why client ID numbers differed across documents
• Why signature fields were blank
• Why the contract includes a $999,408 spending cap that can be raised by written authorization
• What its minimum-hour and 60-day notice provisions mean

Lumalai said she was not alleging wrongdoing.

Ray Alzadua, Vice President of CSEA Chapter 109, called the contract anti-labor and union-busting. He urged the board to pull it and restore the school nurse assistant position.

The other side: At the dais, a board member asked to pull the item and said they preferred keeping the work in-house. A district staff member answered that the old position no longer existed:

"But know that the position was RIF'd 2 years ago and it wasn't a primary duty of that position," the staff member said. A RIF is a reduction in force, meaning the layoff process for school employees.

Director Wilson argued the revenue math favors the contract, saying increased billing income "would more than pay for this position."

Decisions and stakeholder impacts: Trustee Jesus Gonzalez moved to accept the staff recommendation, and Trustee Alena Callimanis seconded. The motion carried.

• For: Board President Thomas Tortez, Board Clerk Trinidad Arredondo and Callimanis
• Against: Board Vice President Valerie Garcia and Trustee Joey Acuña Jr.
• Not recorded: Gonzalez's own vote. The student trustee also said aye.

The district gains a billing function staff say it has lacked since the layoffs. CSEA Chapter 109 sees work it considers bargaining-unit work, meaning work its members are entitled to, moving to a private vendor.

What's next: Alzadua also said salary and benefit negotiations are stalled. Expect classified labor tension to carry into upcoming meetings.

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An Employee's Fraud Accusation Spills Into Open Session

Why it matters: A dispute over one classified employee's hours exposed friction over how far trustees can go in scrutinizing staff. It also delayed personnel approvals that affect paychecks.

Where things stand: Jose Galvez Acuña, a district employee speaking as a public commenter, denied that his time cards overlap. He said he appears twice on a seniority list because he holds two positions, and that HR told him no investigation had occurred. He demanded:

• A public apology from Vice President Garcia
• An explanation from Clerk Arredondo

He is not the same person as Trustee Joey Acuña Jr.

During board reports, Trustee Acuña backed the employee's account. "Everything he said is absolutely true," said Trustee Acuña, who stated the allegation had been made on the record.

The other side: Garcia said she had questioned three differing reports of the employee's hours, not accused him of a crime. "Looks like fraud is not the same as fraud," said Vice President Garcia.

Superintendent Frances Esparza read an email showing how one employee can hold two positions as long as the hours do not overlap. She also reminded trustees of the limits on their role. "The board has one employee, me," said Superintendent Esparza. She added that any intimidation must be reported to HR.

Decisions and stakeholder impacts: Gonzalez urged approval of the consent calendar, which included personnel reports held up at earlier meetings. "The fact that board members are playing politics, holding payment, is just beyond me," said Trustee Gonzalez. The consent calendar passed, as did a remaining personnel item. Individual votes on both could not be reliably confirmed.

The October 8, 2026, minutes passed separately. Arredondo abstained, saying he had missed part of that meeting.

The claims on both sides remain assertions by participants. None has been established as fact.

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AI Proposal Splits Trustees

Why it matters: Teachers are already using AI tools without district guidance. Meanwhile, trustees disagree on whether to partner with an outside group or finish writing internal policy first.

Where things stand: Callimanis separated two issues: the board's opposition to an industrial data center near schools, and teaching students about AI. "A data center is an industrial utility project," said Trustee Callimanis. She cited risks from deepfakes and cheating, raised equity concerns and noted that Desert Sands works with the same group.

"I want to request that the AI proposal with Dr. Saba Quidwani and Designing Schools appears on the next agenda for a vote," she said.

The other side: Garcia said the policy committee had already drafted expectations for employees and students that never reached the board. She restated her opposition to AI and said the matter had been sent back to the Policy Committee. "I do think it's a responsible thing for us as a district to have policy, and that's completely necessary," said Vice President Garcia.

Earlier, Jose Arpaz, a second-grade teacher at West Elementary, described conditions in the classroom. He said staff were told to use ChatGPT to plan physical education lessons and to use markers as equipment. He asked for standards-based, district-approved PE curriculum and a policy on ChatGPT use.

What's next: The board took no action. Callimanis's request sets up a possible vote at the next meeting, unless the item is routed to the policy committee first.

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Deficit History and Election-Season Friction

Why it matters: Arguments over the budget are shaping labor fights and contract votes, and trustees are trading charges ahead of the election.

Where things stand: Tortez walked through audit history. He cited $84M received against $91M spent in 2000, followed by overspending in 2007, 2010, 2013, 2015, 2017, 2019 and 2020. He acknowledged he was unsure of some figures. Auditors' management comments flagged:

• Reserves
• Position control, meaning tracking budgeted positions against actual staffing
• Cash management

"What I've seen in the last 10 years is the ongoing structural deficit," said Board President Tortez. He said progress has been made but the district has a long way to go.

The other side: During public comment, Marisol Juarez, a member of the Seaview Elementary school site council, raised two spending concerns:

• Schools are being asked to pay $6,000 each for Gary Soto's services, despite no demonstrated gains.
• A $1.2M amendment to a Desert Concepts contract involved a relative of Trustee Gonzalez, she alleged.

She asked for an audit. Gonzalez did not publicly respond. Garcia asked that such program options require board approval, as arts programs do.

Decisions and stakeholder impacts: Gonzalez raised two concerns about the campaign:

• "I don't believe that this place is a place where any board member should be campaigning," he said, referring to a CSEA meeting on district property.
• A candidate, he said, is suing the district and driving more than $300,000 in public records costs.

Trustee Acuña said he would be gone in a month. Tortez lamented that only four candidates ran, then apologized. "As the president, I apologize for anything that the board has disrespected any of the public or the staff," said Board President Tortez.

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Two Gas Buses Approved, 5-1

Where things stand: The board adopted Resolution 26278 to buy two gas buses from AG Bus Sales. The purchase piggybacks on Clovis Unified bid 2963, meaning the district uses another district's competitive bid. Before the vote, staff corrected the price to $236,547.47 per bus, including a six-year warranty option. Funding is 80% from the Expanded Learning Opportunity Fund and 20% from transportation. A trustee asked that the correction be reread before voting.

Decisions and stakeholder impacts:

• For: 5 (Tortez, Garcia, Arredondo, Callimanis, Gonzalez)
• Against: 1 (Acuña)

The student trustee also said aye. The purchase comes as Alzadua criticized a parent text about late after-school (ASES) buses and said drivers are working more than 80 hours.

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• Closed session: The board reported a 6-0 action on stipulated expulsion case 26-27-001, with Trustee Vargas absent.
• Emergency shelters: The board approved a Riverside County mass care shelter agreement covering MegaSite, Desert Mirage High School, Toro Canyon and Las Palmitas.
• Pupil Transportation Information LLC: The board approved an agreement with the firm after Alzadua criticized $15,000 in PTI management training.
• Other approvals: The board approved the Prism VR efficacy study with Project Tomorrow and outdoor furniture through San Bernardino City USD bid 2217.
• Facilities and safety: Arredondo requested bottle-fill stations, restroom mini splits and more student restrooms at Coachella Valley High School. Esparza praised security staff after a pellet gun incident at Desert Mirage.

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Looking ahead: Watch whether the Designing Schools AI proposal appears on the next agenda. Esparza also announced a new student hub at Coachella Valley High School and a Trunk or Treat on Oct. 30.