The following is a summary of the concerns and necessary actions highlighted in the staff report regarding the proposal to form a Malibu Unified School District (USD). 1. Educational Impact Issue: The proposal lacks a clear educational plan for the Malibu USD, failing to specify how it will improve upon the existing Santa Monica-Malibu USD (SMMUSD). Action Item: The City of Malibu needs to develop and present a detailed educational plan that outlines specific educational measures and initiatives for the proposed Malibu USD. This plan should address how the new district will: Increase student success. Cure educational deficits (if any) of the SMMUSD. Differ from the high-performing SMMUSD. Offer a range of programs comparable to the current SMMUSD. 2. Declining Student Population Issue: Claims that students would return to a Malibu USD due to dissatisfaction with SMMUSD are unsubstantiated, and planning for a large influx of students is unrealistic. Action Item: The City of Malibu should provide realistic enrollment projections and plans to accommodate changes in student population. 3. Community Identity Issue: The claim that Malibu students are excluded from their school district is false, as they are part of the high-performing SMMUSD. Action Item: The City of Malibu needs to present compelling reasons beyond a desire for community identity to justify the formation of a new USD. 4. Fiscal Impact and Asset Division Issue: Creating a Malibu USD would financially disadvantage the SMMUSD due to the loss of assessed valuation, parcel tax revenue, and funds available to support Santa Monica students, compared to the funding all students in the SMMUSD currently enjoy. There is no agreement on how to divide assets. Action Item: SMMUSD and the City of Malibu must negotiate a financial settlement to address the fiscal impact on SMMUSD. This settlement must include an equitable division of property, including real and personal property, debt, and employee-related obligations (such as retirement). Develop a plan to mitigate the negative fiscal impact on the Santa Monica USD. 5. Racial/Ethnic Impact Issue: The formation of a Malibu USD would result in a district with a significantly higher proportion of White students and potentially discriminatory impacts. Action Item: The County Committee should consider the potential discriminatory impacts and the lack of ethnic diversity in the proposed Malibu USD. 6. State Costs and Facilities Issue: The reorganization's impact on state costs and school facilities costs is uncertain. Action Item: Further analysis is needed to determine potential changes in state costs and school facilities costs. 7. Overall Recommendation Issue: Based on currently available information, and the lack of any other planning, it appears that overall, a Santa Monica USD district, and more importantly its students, would be harmed by the precipitous drop in revenues caused by the reorganization of Santa Monica Malibu USD to Malibu USD and Santa Monica USD. Action Item: The County Committee should carefully weigh the evidence and concerns raised in the report, especially regarding the financial implications and the absence of a negotiated agreement between the parties.

CEPS believes so. SMMUSD has one of the highest ratings in the state for our bonds, meaning that third parties look at revenues and expenses and determine that district finances are so well-managed that money can be borrowed at a lower interest rate. The Board has balanced the annual budget for the past three years and for the 9 years prior to Covid the unrestricted general fund ending balance has averaged a net gain of $1,247,894.89 based on end-of-year accounting. In addition, the Board judiciously took advantage of historically low interest rates to refinance older bonds, yielding a savings of $51M. And the latest bond was issued to take advantage of these low rates, reducing its total projected cost by $250M.

The former district headquarters, just east of Memorial Park, is located in an area adjacent to the Metro E Line targeted for future housing development and therefore should increase in value significantly. So the Board purchased another building on 4th street to serve as the HQ for now and many years in the future. The District has owned the land under the building for many years so the purchase price was discounted from market value. The new building allows the district to consolidate operations currently housed in four different locations, leading to greater economies of scale and increased collaboration. In the interim, the old headquarters is leased out and yielding revenues for operations. If you think about it, the Board has cleverly used restricted, non-operational dollars, which can’t be used to pay teachers, to generate funds which can be devoted to operations. And then in the future the old HQ can be sold at a profit, recouping capital funds for future projects.

Quite to the contrary, the Board has focused on the learning loss stemming from the COVID-19 lockdowns and virtual classrooms and has worked proactively to overcome the achievement gap between white and Asian students and their Latino and Black counterparts. Mental health programs have been enhanced and new paths for teaching, such as project-based learning, have been embraced. The facts are that under the Board’s leadership SMMUSD is ranked in the top 3% of all districts in the state and top 1% of districts in the nation, was just named the 7th best district in the state for teachers, and has been a model for academic innovation recognized county and state-wide. It’s no accident that the SMMUSD teachers have endorsed the same candidates as CEPS – those teachers know better than anyone whether or not the Board is providing the resources and culture to do the best job they can.

The Board and district increased funding for Expanded Learning Supports. This included: Hiring more mental health workers; Expanding summer school for students with Individualized Education Plans (IEPs); and Expanding the number of kids who could participate in Academic Support Program (ASP), the district’s one-on-one biweekly tutoring program. The tutoring is provided by a local Black-owned business with a stellar Yelp rating. Please read the article linked below for more information on the district’s success with learning loss: https://tinyurl.com/little-learning-loss-SMMUSD

Beginning with the 2022-2023 school year, the District relocated students on the Muir/SMASH campus to make comprehensive repairs to address issues stemming from faulty construction. As with the maintenance of any home, apartment building or office complex, the District started first with conservative fixes to address issues related to water intrusion. This was done to minimize disruption to campus operations. The issues became so pronounced during the heavy rains of December 2021 that the Board decided to close the campus for either a major remodel or a complete rebuild. With the generous donation of some classroom space at Santa Monica College, all the grades at the Muir/SMASH campus have been temporarily relocated into various other schools while the issues at their former home are remediated. https://tinyurl.com/Drati-on-Muir

YES, please donate to both the Ed Foundation and PTA! Both PTA and the Ed Foundation are critical funding sources for local schools. Donations to the Ed Foundation pay for staff and programs during the school day at all Santa Monica schools. The Ed Foundation is the only organization that can fundraise for these programs. The district made the decision to centralize fundraising for these programs to ensure that every student has equitable access to quality enrichment programs and to correct human resource liability issues arising from nonprofits hiring additional staff. All annual donations to the Ed Foundation are granted to the district to be spent on staff.