MPUSD shows three options to close multimillion‑dollar gap; board to act March 3

Superintendent Dr. Diffenbaugh told the Monterey Peninsula Unified School District board on Feb. 24 that the district faces a fiscal squeeze driven by declining enrollment, expiring one‑time COVID relief funds and rapidly rising general‑fund contributions for special education. He framed three options staff will present to the board on March 3 to stabilize the budget.

The superintendent described Option 1 as a targeted $4 million plan that would reduce several management roles, revert some staffing to pre‑COVID levels and split some student‑support positions across campuses; it would preserve many site‑level strategic investments but scale back certain student‑facing services. Option 2 keeps current mental‑health staffing largely intact (except long‑standing vacancies) and limits supervisory reductions; it was the most popular in staff and community feedback, officials said. Option 3 is a ratio‑based model tied strictly to school size, which staff estimated could yield roughly $8 million in savings but would impact more than 70 positions and, critics said, could shift resources away from higher‑need sites.

Dr. Diffenbaugh said the district projects the special‑education funding gap this year alone at over $25 million and that the $4 million shortfall identified on the short term must be addressed to preserve positive certification with the county and avoid state oversight. He cautioned that potential reimbursements through the California Youth Behavioral Health Initiative (CYBHI) could offset some costs but are not guaranteed and have been delayed for many districts.

Board members pressed for clarity on survey response counts (staff said there were just over 100), vacancy rates and how bumping and layoff notices would be handled. Trustees repeatedly raised equity concerns about Option 3; several said they were inclined toward a hybrid or toward Option 2, which preserves counseling and other mental‑health services. Trustee Sanders urged the board consider retaining community liaison positions where possible.

Public commenters filled much of the evening, with students, counselors, program leaders, parents and union representatives urging the board not to cut counselors, community liaisons, supervisory assistants, mental‑health therapists and program leaders. Several speakers described concrete consequences they said would follow deep cuts to student supports, including higher class sizes, reduced extracurriculars and diminished campus safety and family engagement.

No final vote on the fiscal plan took place. Staff will return with a final recommendation and formal resolutions at a special board meeting scheduled March 3; the superintendent emphasized March 15 as a statutory deadline by which layoff notices must be issued if the board adopts reductions requiring notices. The superintendent said staff will try to incorporate public and board feedback into a coherent final plan rather than a “buffet” of ad‑hoc changes.

What’s next: the board will consider staff’s final recommendation at the March 3 special meeting. Any formal actions that would require layoff notices are linked to statutory timelines; staff emphasized the difference between a layoff notice (March 15 if required) and an immediate termination.