Duarte Unified approves $7 million settlement with Options Duarte over special-education funding

The Board of Education of Duarte Unified School District voted unanimously to approve a $7,000,000 settlement agreement with Options Duarte Incorporated, resolving disagreement over special-education pass-through payments. Motion to approve was made by Board Member Diaz and seconded by Board Member Olguin; the motion passed 5-0.

The settlement follows a multi-year review of funds routed through the district by the Special Education Local Plan Area (SELPA) and questions about whether payments matched services provided. “We held the funds until they could explain to us how we’re paying for their students,” a district staff member explained during the discussion, and the district had earlier set aside $7,500,000 to ensure funds were available when the settlement was resolved. With the approved $7,000,000 settlement, the district will return approximately $500,000 to its general fund.

Superintendent Dr. Hillman said the arrangement reflected a desire to resolve outstanding claims without further escalation and noted that Options Duarte is no longer part of the district’s SELPA, meaning future funding for that provider will not pass through Duarte Unified.

The board’s action was presented as a settlement of owed amounts rather than an admission of liability, and board members asked for historical context about previous payments and personnel changes at the SELPA that complicated records. No additional actions were announced at the meeting about changes to SELPA processes.

The motion and vote recorded at the meeting represent a final administrative resolution of the matter by the board.