Board approves amendment removing $3 million pass-through; Metro Ed to lose prior Milpitas pass-through funding

The board approved a first amendment to the 2019 master business relationship agreement among East Side Union High School District, neighboring districts and the Metropolitan Education District that removes references to a longstanding process by which Milpitas Unified historically passed through roughly $3,000,000 in adult ROP funds into MetroED.

Why it matters: District staff said the state has changed how those adult ROP dollars are distributed; Milpitas Unified no longer receives the pass-through funding to forward to MetroED. The amendment removes language that had led MetroED to anticipate the $3 million annual pass-through; staff said the amendment is retroactive to Jan. 1, 2025.

Superintendent and other district representatives said superintendents across the six participating districts discussed the change and that each district must formally approve the amendment as part of the JPA process. The board approved the item after a motion and second were recorded.

Actions taken: The board moved to approve the first amendment to the 2019 master business relationship agreement; the motion passed in the public meeting and the amendment will be transmitted to MetroED and the other JPA members for their approvals.

Context: MetroED receives multiple funding streams for regional career technical education; the removal of the pass-through will reduce the amount MetroED can expect from this specific channel going forward. District staff said the change reflected updated state allocations and was discussed with other superintendents.

Next steps: Each JPA member district needs to approve the amendment to formally update the master arrangement and the partners will continue operating MetroED programs within the revised funding expectations.