The San Luis Coastal Unified School District is preparing for significant budget cuts as it works to address a deficit of more than $6 million from the current fiscal year.
District officials say they expect to reduce the shortfall by $5 million in the upcoming school year. The remaining gap could be covered through outside funding, including one-time state and local allocations.
“As of right now, it shows about a $1 million deficit out of a $140 million budget,” said Assistant Superintendent of Business Services Ryan Pinkerton. “With the one-time money coming in for the 2025–26 school year, that should bring us into a balanced equation.”
A key part of the district’s financial strategy is a funding agreement tied to the planned closure of the Diablo Canyon Nuclear Power Plant. That settlement is included in a state law, SB 1090, which is designed to mitigate the economic impact of the plant’s 2025 shutdown. However, with the facility now expected to remain open until 2030, the school district is working to extend the agreement and continue receiving support.
“The following year, because we're going to lose our SB 1090 funding, which is about $4.7 million, that really is the cause of our structural deficit,” Pinkerton said.
In the meantime, the district will rely on reserves—about four percent of the total budget—to help balance the books.
Despite these efforts, the district plans to eliminate around 30 full-time positions, and larger class sizes may be on the horizon.
The school board is scheduled to finalize the budget on June 3. The deadline for public comment is May 30.
