Santa Cruz Valley Unified board approves 4% pay raise, eyes cuts as enrollment falls

The Santa Cruz Valley Unified School District Governing Board voted April 14 to approve a proposed 4% pay increase for eligible certified administrators, teachers, paraprofessionals and classified staff for the 2026–27 fiscal year and to appoint Vanessa Alegria Rivas as principal of San Cayetano Elementary.

The decisions followed an extended presentation from the district’s CFO and staff about the FY2027 budget. CFO Ms. Brown (CFO) told the board she is projecting enrollment of 3,289 students next year — a decline of 176 students from current projections — and warned that the drop represents roughly a $1 million reduction in maintenance and operations (M&O) funding. "As of today, we do not have a budget from the state," Ms. Brown said, explaining that the district bases its recommendations on dollars already available and conservative assumptions.

Why it matters: the projected enrollment decline and state budgeting uncertainty leave the district relying on a $7 million carryover and a $1 million contingency set‑aside. To address the shortfall, staff proposed a set of cost‑saving measures including right‑sizing some sites (3.3 teaching FTEs district‑wide), pausing the bus rotation for one year, and reducing the one‑to‑one technology set‑aside by $100,000 while the TLA office studies its instructional impact.

Board members and staff discussed several specific budget elements. The administration recommended a 4% across‑the‑board increase for eligible employees, a measure the CFO estimated would cost about $816,470 in operating funds; the board approved the recommendation. The board also heard a staffing and reclassification plan that includes a proposed reclassification and market‑rate adjustment for bus drivers to raise the district’s starting pay to $18.50 (staff cited a market average of $18.89), with an estimated cost of $126,700.

The capital fund plan includes curriculum adoption (K–8 science and middle‑school ELD materials), classroom interactive whiteboards for 100% of classrooms (a multi‑year rollout), technology infrastructure work (phone, wireless licensing, firewall, switches) and athletics facility upgrades at Eureka High School (new scoreboards/shot clocks/video) estimated at more than $200,000. To free capital dollars, staff proposed pausing bus rotation purchases this year and delaying some one‑to‑one renewals pending the study.

Several board members urged more aggressive student recruitment — one member urged the district to "toot our horn" about dual‑enrollment programs — and asked about contingency, ESSER funds, and the condition of the bus fleet. Staff said ESSER one‑time pandemic funds are spent but that some prior ESSER allocations had been placed into contingency; they offered to provide a fleet age/mileage report.

The board also discussed a large, unrelated county treasurer matter affecting several local governments; the district said the loss is parked in a litigation recovery fund (Fund 565) and that attorneys are pursuing recovery.

Procedure and votes: The salary increase motion passed (the board indicated all in favor). The appointment of Vanessa Alegria Rivas as San Cayetano principal also passed on a board motion. Both votes were taken during the regular agenda and recorded as approved.

Next steps: staff will finalize budget forms after the state releases its budget and return in summer with final adoption items; the TLA office will complete the one‑to‑one effectiveness study and staff will provide additional operational information about bus fleet condition and capital timing.

The board approved the consent agenda and adjourned at 6:58 p.m.