Santa Cruz Valley Unified board adopts $43.6M budget, approves tax rates and releases staff member from contract

The Santa Cruz Valley Unified School District Governing Board on July 14 approved the district's 2026–27 preliminary operating budget, adopted the district's recommended tax rates and voted to release an employee from a 2026–27 contract with $3,000 in liquidated damages.

Superintendent Verdugo opened the meeting with a summer update, thanking administrators and coaches for training and extracurricular programs ahead of the school year. "I just wanna congratulate all the coaches...because they put in the time and efforts," Verdugo said, describing extended summer activity from wrestling to dance.

The board moved quickly through routine business and then considered a personnel recommendation to release employee Shweta Dubay from her 2026–27 contract. Alma de la Riva moved to "release Miss Shweta Dubay from her 2026–27 contract and assess liquidated damages in the amount of $3,000," and the motion passed after a second and voice vote.

The business office presented the district's preliminary 2026–27 budget and asked the board to adopt it in preliminary form. The office reported an operating fund total of $43,600,000 and said it will return before Sept. 15 to file final budget forms. "That is exactly what I bring back to adopt," the business officer said while summarizing the package.

The board then considered tax rates tied to that budget. The business officer explained the difference between the primary rate (which funds the budget limit) and secondary rates (which cover voter-approved overrides and debt service). She said assessed valuation for the district rose about 5.5% over the prior year; because of the inverse relationship between valuation and rate, the district's combined rate recommendation falls from 4.9312 to 4.6201. Specific figures the board heard included a 9% maintenance-and-operations (M&O) override that represents about $2,000,000 in programming support and a projected override-rate cost to taxpayers of 0.8727; the debt-service levy was reported at 0.5857.

The business officer cautioned that although the district's tax rate is lower, individual homeowners might see higher bills if their property valuations increased. She illustrated the point by referencing the district's average home value figures and how valuation changes affect the total tax bill.

Board members pressed on how dependent programs are on the override and on the status of a litigation recovery (referred to as the Gutfar matter). The business officer said the district has received only one recovery payment so far and that, if no further recoveries occur and the county does not levy on the district's behalf, the district could face a cash deficit near $12 million that would require moving funds or registering warrants and later levying to recover shortfalls.

After discussion the board voted to approve the recommended 2026–27 tax rates as presented by the business office.

Administrators also noted they will not review policies at this meeting but plan to bring a dress-code policy and a booster-club policy for review on July 28. The board approved the consent agenda and adjourned at 8:33 a.m.

Votes at a glance: the board approved the agenda, adopted the preliminary FY2026–27 budget (operating fund total stated as $43,600,000), approved the recommended 2026–27 tax rates (combined rate presented as 4.6201), approved the release of Shweta Dubay with $3,000 in liquidated damages, and approved the consent agenda. The board confirmed it will reconvene for policy review and planned dates in late July and September.

(Reporting based only on the meeting transcript: the business officer's presentation and member remarks are presented here as they occurred; specific individual vote tallies were recorded in the meeting as voice votes and the presiding officer announced each motion passed.)