Special Meeting — Healthcare Absorption Vote + Bond Information

Summary

Sheri Morgan's first meeting presiding as Board President after the 12/11 reorganization. Two-item agenda, reordered by 5-0 motion to take Item 3B (healthcare corrective action) first so teachers and staff in the audience would not have to remain through the facilities discussion. CBO Manoj Roychowdhury walked four remediation options for the cumulative H&W benefits over-contribution; Glass recommended Option 1 (district absorbs $1.04M from the General Fund, no claw-back from employees). Morgan from the chair: "I need a motion on the floor to absorb the excess contribution of 1.04 million dollars in this year's budget." Vote 5-0. Item 3A was information-only — Roychowdhury presented Prop 39 bond scenarios for a potential November 2026 ballot measure (extending the current $8.85/$100K assessed-value rate over 25 years would generate ~$81-82M).

Key insights (7)

• The on-record motion language is $1.04M, not $850K. Morgan: "I need a motion on the floor to absorb the excess contribution of 1.04 million dollars in this year's budget." Roychowdhury's derivation: "Cumulative overpayment is about 1.04 million, factoring in the 350,000 one-time payment that was appropriated by the board, but it was not allocated." Matches the Bishop & Olafson audit's Slide 12 net-cumulative-excess figure.
• Four options were presented (not exclusive): (1) district absorbs from General Fund — $1.04M, recommended; (2) use FY 2025-26 state discretionary block grant — $680K partial; (3) renegotiate 2025-26 salary increases — TBD; (4) claw back from employees — $1.04M, explicitly not recommended.
• Trustee Malczewski raised the 2021 $350K MOU as still unexplained: "the union came to us, or our business manager came to us in 2021 and said health care costs have risen... He said we need $350,000. The board, of course, agreed... Something happened, we don't know what to that $350,000. That's still a little bit of a mystery." Supported Option 1 anyway.
• CSEA President Thasa Zuziak in public comment rebutted the "$1.8 million misappropriation" framing: "The narrative from the majority and their three supporters has reportedly suggested misconduct, unaccounted funds to the tune of $1.8 million. All of you know that is not true. The money was spent on rising health care premiums or over a four-year period increases that were presented, discussed, and approved in open board meetings every step of the way."
• Steve McIntosh (Sensible Laguna) in public comment anchored on $1.77M but ultimately supported Option 1: "It was 1.77 million dollars was the actual amount of overpayment of insurance benefits that took place... So I'd like to urge you to take care of these folks and do the right thing and choose number one."
• Newth Morris (FUEL board co-founder) rebutted Steve Brown's "could have hired 27 teachers" framing with loaded-cost math: "$800,000 divided by $100,000 is eight. So even by this crazy math, the worst case number is eight teachers for one year."
• Bond Item 3A (information-only): extending the current $8.85/$100K assessed-value rate over 25 years would generate ~$81-82M in 2025-26 dollars for a potential November 2026 Prop 39 bond measure.

Linked timeline events (1)

• Dec 16, 2025 Board votes 5–0 to absorb $1.04M cumulative healthcare overpayment