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Board warns of multimillion‑dollar shortfall as Diablo Canyon unitary tax declines; members press PG&E for compensation
Summary
District staff told the board the San Luis Coastal Unified faces a structural deficit driven largely by the loss of unitary tax revenue tied to Diablo Canyon. Board members called for compensation this year while PG&E and staff said a legislative solution is likely; no immediate payment was committed.
The San Luis Coastal Unified School District heard a budget briefing that outlined a structural shortfall driven primarily by a drop in unitary tax revenue tied to the Diablo Canyon nuclear power plant and rising personnel costs.
The presentation by Ryan Pinkerton, the district fiscal lead, explained the timing: un‑audited actuals will be available in September, a property‑tax estimate arrives by Nov. 30, and March notification deadlines mean the board must make staffing decisions by December. "Un‑audited actuals will tell us exactly what we spent, what our revenues were and where our reserve levels ended up," Pinkerton said.
Why it matters: the district said it previously received roughly $11 million in unitary tax related revenue in earlier years and this source has decreased to about $3.7 million recently; the district faces the final year of SB1090 payments and expects the change to be a major ongoing driver of a multi‑million‑dollar structural gap.
Board members and public speakers pressed for an immediate local remedy. Board member Chris Clawson warned of the community stakes: "This community is now the only community in the state of California with an operating nuclear power plant in its backyard," he said, urging that the district be made whole while the plant remains open. Several speakers said the district once received repeated large payments tied to the plant and asked why those funds were no longer available.
PG&E acknowledged the concern but described the fix as primarily legislative. Eric Daniels, representing PG&E, told the board: "We are part of the community... We want to try to find a solution that we can all work with and we've made that clear with Dr. Prader and with the staff." He added that a legislative change would be the appropriate vehicle to restore the revenue stream the district and county once received.
District staff described multiple parallel strategies: continuing legislative outreach, pursuing potential charitable or mitigation donations, and pursuing internal cost‑control measures including a hiring freeze and careful consideration of open positions. Pinkerton stressed that the district is trying to minimize reductions: "We only want to reduce what we have to," he said, and noted the board previously approved roughly $5 million in reductions and a 1% employee increase that added to the budget pressure.
Other drivers: the presentation noted three other persistent budget pressures — expanded transitional kindergarten that currently receives little or no dedicated state funding for basic‑aid districts, rising employer contributions to STRS and PERS, and the ongoing hiring of staff funded previously with one‑time pandemic funds that are now winding down.
What happens next: staff said the December timeframe will be critical for preliminary decisions because of the March 15 statutory notice deadline for layoffs; un‑audited actuals in September and property tax numbers at the end of November will refine the picture. Board members asked for clearer infographics and plain‑language summaries to share with the public.
No formal board action on a funding remedy was taken at the meeting; staff committed to continued outreach and to report back as new revenue and budget projections become available.
