District Deficit Spending Plunges to $75K as Measure O Projects Reshape Campus

The Martinez Unified School District Governing Board received welcome financial news Sept. 14 as the 2025–26 fiscal year closed with unrestricted deficit spending of just $75,000 — a fraction of the $1 million projected — while more than $90 million in voter-approved construction projects advanced toward critical milestones at Alhambra High School and Morello Park Elementary.

• Year-end fund balance tops projections by $1.25 million, landing at $8.6 million on the strength of $600K in special education savings and $300K in E-rate technology reimbursement

• Measure O construction enters its most intensive phase, with a new auxiliary gym, track and field complex, security fencing, and a 17-classroom building all moving through state approval at Alhambra High

• Student representative calls for consistent cell phone access during lockdowns after a nearly two-hour September 2nd incident left some Alhambra students unable to reach parents

• Enrollment holds steady at roughly 3,800 students, defying projected declines as universal TK drives 192 four-year-olds into public schools and forces new classroom construction

• Board approves paid teacher leader positions to roll out the district's new K–8 math curriculum at every school site

The Budget Bright Spot — and Its Limits

Why it matters: A district that budgeted for $1 million in deficit spending ended the year spending just $75,000 more than it took in, giving administrators a rare financial cushion heading into negotiations over future salary and benefit costs.

Where things stand: Chief Business Officer Andy Cannon presented the 2025–26 unaudited actuals showing $63 million in total revenue, essentially unchanged from estimates, with expenditures coming in $1.3 million below projections. The ending fund balance reached $8.6 million — $5.9 million unrestricted and $2.7 million restricted — beating projections by $1.25 million.

Two factors drove most of the improvement: $600,000 in special education savings from lower county tuition costs, reduced staffing expenses, fewer non-public school placements, and counseling services billed to the state; and approximately $300,000 in E-rate reimbursement for technology infrastructure. Cannon noted that E-rate funds from the federal government carry no restrictions on placement, so the district deposited them into unrestricted accounts for maximum flexibility.

Average daily attendance grew by 35 students over the prior year to 3,633, though it fell 33 short of projections.

Restricted one-time balances totaled nearly $1 million, including $700,000 in Block Grant 6019 and $182,000 in kitchen infrastructure funds.

The other side: Trustee Logan Campbell pressed on whether the gains are structural or fleeting. "Are we now set up to continue a reduction in deficit spending, or are these kind of reflections of one-time reduction in spending that we just don't know if that's going to repeat?" he asked.

Cannon's multi-year outlook projects deficit spending of approximately $1 million in 2026–27, declining to $430,000 in two years and $100,000 in three — but those baselines assume no salary or benefit increases. Rising insurance premiums, workers' compensation costs, and contractor expenses are already eating into gains, even as increased special education funding ($1.3 million more this year) and a 4.3% LCFF cost-of-living adjustment helped. Cannon confirmed that CalPERS health insurance rates came in lower than budgeted this year, providing some relief.

"I think it's a really great opportunity to reorient yourselves," CBO Cannon said of the favorable close. "I know we're doing this for Cabinet around what those priorities are."

Decisions: The board approved the unaudited actuals unanimously (For: 5, Against: 0, Absent: 0). The board also unanimously adopted Resolution 2027-02 certifying GANN Limit compliance for 2026–27, a routine annual requirement.

What's next: The favorable position provides breathing room, but Cannon's caution is clear: approximately $1 million in deficit spending is projected for 2026–27 before any labor agreements, and rising fixed costs could erode the cushion quickly.

$90 Million in Measure O Projects Hit Key Milestones

Why it matters: Martinez voters approved Measure O to modernize aging school facilities, and the most capital-intensive phase is now underway — with state approval delays creating timeline risk for several high-profile projects at Alhambra High School.

Where things stand: CBO Andy Cannon walked the board through a comprehensive status report covering projects totaling more than $90 million.

At Morello Park Elementary, a two-classroom TK building is progressing with footings soon to be poured, targeting completion in July–August 2027. At Alhambra High School, a cluster of major projects is in various stages of state Division of the State Architect (DSA) review:

• Track and field/tennis courts: Awaiting DSA approval. ADA compliance now requires permanent restroom facilities, adding an estimated cost of under $500,000. "We were going to have to spend money anyway because DSA said we had to make at least $700,000 worth of ADA accessible improvements," Cannon said, noting the restrooms eliminate the need for portable toilets and add long-term value.

• Auxiliary gymnasium: Also pending DSA approval, anticipated any day, with a July 2027 completion target.

• Security fencing: Already installed along the fire lane and Geneva Street access points, with additional fencing planned between the counseling office and administration building to create a single point of entry.

• Building F replacement: A 17-classroom, two-story structure currently in RFP scoring with a vendor selection expected Sept. 28. The scope includes HVAC replacement for the current gym, administration reconfiguration, library improvements, and outdoor covered dining — all targeted for fall 2028.

Future projects include paint, flooring, and window coverings across campus; junior high modernization with HVAC and technology upgrades; and a new Martinez Adult Education building.

Trustee Courtney Masella-O'Brien asked whether the security fencing affects emergency vehicle access. Staff confirmed that Knox boxes allow fire department entry, though access is slightly slower than an open lane.

"These projects, all $90 million plus, is only able to be completed because of Martinez voters and them passing Measure O," Cannon said. "We just want to say thank you."

Cannon reported all projects are currently on budget with no contingency overruns, but cautioned that more projects remain and costs could shift. Fund 21 (Measure O, approximately $45 million) and Fund 35 (state construction matching) balances serve as contingency for capital work.

What's next: DSA approval for the track and gymnasium could come at any time; delays could push the track project past the February athletic season start. The Building F vendor selection is expected later this month.

Lockdown Exposes Cell Phone Policy Gap

Why it matters: A nearly two-hour lockdown at Alhambra High School on Sept. 2 left some families unable to hear from their children, exposing a disconnect between the district's mobile device restrictions and parents' expectations during emergencies.

Where things stand: The student board representative described how some students were able to contact parents during the lockdown while others — including the representative — could not. The inconsistency created anxiety among parents who could see other families communicating with their children.

"Students have the right to access their cell phones under emergency situations like lockdowns," the representative told the board. "I think the fact that there was an inconsistency in that rule where some students didn't have access to their phones, that's an important thing to consider."

The representative praised the response of Alhambra staff, the Martinez Police Department, and the Sheriff's Department, but urged the board to resolve the inconsistency: "I just do think it is important that at some point every student has the opportunity to contact their parent during a lockdown situation."

Interim Superintendent Janelle Ayette confirmed that existing district policy already provides a framework. "In our policy, it specifically calls out that staff may, at their discretion, may allow students to use their mobile devices during an event of an emergency," she said, adding that the topic was part of a staff debrief following the incident.

Board President Tania Brugger suggested that the location of centrally stored phones relative to where students were sheltering in place contributed to the uneven access.

The other side: Trustee Logan Campbell raised a practical concern: "If a principal is trying to — their only means of contacting law enforcement for that emergency — if they're trying to make a call and there's a thousand other people making calls at that point, it can clog up the line."

The issue resurfaced later in the meeting during a review of August 2026 CSBA policy updates, which included updated mobile device guidance consistent with new state law and a June 2026 board presentation. Superintendent Ayette reiterated that the existing policy gives staff discretionary authority during emergencies. The CSBA updates also reflected a U.S. Supreme Court ruling allowing parents to object to names or pronouns other than a student's legal name or birth-assigned pronoun, and new board member training mandates covering school finance and child abuse mandated reporter requirements.

What's next: No formal action was taken on the cell phone policy, but the board discussion and staff debrief signal that clearer emergency protocols are likely coming. Updated CSBA policies will return to the board for formal adoption at a future meeting.

Enrollment Defies Decline, TK Growth Forces Construction

Why it matters: Stable enrollment protects the state funding tied to average daily attendance that underpins every program in the district, and the surge in transitional kindergarten students is forcing capital investments at two school sites.

Where things stand: Interim Superintendent Janelle Ayette reported district-wide enrollment of just over 3,800 students — a slight decrease from last year but well above earlier projections of steeper decline. TK enrollment reached 192 students following California's full implementation of universal TK eligibility for all four-year-olds born by Sept. 1. Kindergarten enrolled 271 students. Both TK and K numbers exceeded projections.

"We are seeing families make choices to enroll their children here rather than keep them enrolled in private programs because it's free," Ayette said. "So that's been positive for us."

Alhambra High School enrollment increased to 1,053, boosted by a large incoming ninth-grade class. Interdistrict transfer applications were lower this year, but most were granted. Ayette encouraged families to apply as early as Feb. 1, when the application window opens.

Trustee Brenda Leal asked about growing pains for TK and kindergarten facilities: "Are we experiencing growing pains? I don't think we're done yet." Ayette confirmed that two new TK classrooms are under construction at Morello Park and a new TK class is opening at John Muir Elementary to absorb demand.

New Teacher Leader Roles Approved for Math Rollout

Where things stand: Director Amy Espinoza presented a curriculum implementation facilitator job description that the board approved unanimously (For: 5, Against: 0, Absent: 0). The position provides after-contract-day hourly pay for two teachers per school site to receive professional development on newly adopted California math frameworks and curriculum, then deliver that training to colleagues at staff meetings. The current focus is K–8 math adoption, with potential future extension to high school.

Trustee Campbell asked about compensation. Superintendent Ayette confirmed the positions pay hourly, which typically exceeds stipend rates.

Funding comes from the Student Services and Professional Development Block Grant.

Minor Items

• Sister city student exchange: William Harrison, a student at Alhambra High School, presented on his 40-day summer visit to Hanchuan City, China, one of Martinez's sister cities, where he toured schools, attended a Mandarin exchange program at a Beijing university, and drew parallels between the two cities' environmental values. Board members praised his public speaking and encouraged expanding the exchange program.

• Marathon volunteer support: Marathon Martinez Renewables funded fingerprinting and TB clearance for more than 30 parents at Las Juntas Elementary, offsetting new state volunteer screening requirements. "I am so grateful for their support, which allows more of our parents to be cleared to volunteer at our schools," said Principal Patty Crespo. Board President Brugger noted that Marathon, which produces renewable fuel from cooking oils and feedstock, has also partnered with Alhambra High on Habitat for Humanity and sent nurses to the school.

• Bridge to College program: The superintendent announced a new TK–12 initiative providing free transportation and meals for families to visit community colleges, CSUs, UCs, and private universities.

• Attendance Awareness Month: September was designated Attendance Awareness Month, with school attendance teams reviewing data monthly for early outreach interventions.

• Teacher of the Year: Katie Collins will be celebrated at the Contra Costa County Office of Education for Teacher of the Year honors.

• Wellness coach at Las Juntas: Trustee Anne Martin highlighted a new wellness coach program at Las Juntas Elementary as a non-punitive intervention helping students regulate when overstimulated in the classroom.

• Consent calendar approved unanimously without changes.

• GANN Limit Resolution 2027-02 adopted unanimously.

• Condolences: Trustee Masella-O'Brien expressed condolences for the Brentwood community and Liberty High School after two students were killed in a weekend crash.