Above-cap health benefit payments continue without new MOUs
Following expiration of the 2021-22 MOUs, the district continued to pay employee health benefits above the contractual caps for three additional school years. According to the Bishop & Associates forensic audit later commissioned by the new board, no new MOUs were signed, no additional board authorizations were issued, and the matter was not raised at the bargaining table during this period. The audit later quantified the cumulative shortfall at approximately $1.77 million across four years.
Citations (4)
- Sensible Laguna · Gary Kasik, Steve McIntosh
For the four years 2022-23 through 2025-26… the district did not comply with the CBA.
Sensible Laguna quotes the Bishop & Associates audit finding.
- GUEST OPINION: Laguna Beach Schools — The $1.77M Healthcare Controversy Explained op-ed Laguna Beach IndependentLaguna Beach Independent · Steve McIntosh · 2026-03-16
- Manufacturing Outrage: How Union Leaders Hid Their Role in the LBUSD Employee Healthcare Overpayments advocacy George's SubstackGeorge's Substack · George Weiss · 2026-05-09
Under California collective bargaining law, the correct path when healthcare costs exceed contractual caps is to return to the negotiating table, renegotiate the terms, and obtain formal board authorization. After 2021, that process was never repeated.
- Laguna Beach Unified School District
LBUSD recording of the meeting; see /meetings/2025-11-13-regular for a transcript-derived summary.